PuzzleSwap Launches Custom Mega Pools
Puzzle started in the fall of 2021 as a decentralized exchange built on mega pools, liquidity pools that can consist of anywhere from 2 to 10 tokens.
Mega pools are a better solution than the usual liquidity pairs: a mega pool allows you to invest multiple tokens at once and earn more on commissions.
Now you don’t need to have a programming background to create your own liquidity pool. Just purchase a special artefact and select the tokens to include. In addition to token composition, we also entrust you with picking your own commission size, something that has never happened before in the Waves ecosystem.
Meet the DeFi innovation on the Puzzle Swap platform!
How it works
To create a custom pool, you must first have tokens to provide the initial liquidity and go to this page.
Please note that to create a custom pool, you will need one of the 5 NFT artefacts from the Puzzle Swap meta world. They can be purchased using the PUZZLE token right at the pool creation page. Tokens spent on the purchase are instantly and automatically burned.
The price of artefacts changes dynamically: each next artefact purchased costs $1 more, starting at $400. This means that once users have purchased 600 artefacts, the issue price of a new artefact will be $1,000 in PUZZLE token equivalent. These terms can be changed later by voting.
How to earn on a custom pool
Custom pools should be especially attractive to large investors who create a pool in order to maximize the benefits of their portfolio. Namely, customize the composition of the pool and earn the highest possible APY by utilizing their liquidity.
However, the Puzzle team aims not just to create a convenient financial tool for whales, but also to provide earning opportunities for smaller investors and newcomers. If you are well-versed in the world of DeFi, then creating your own mega pool is an opportunity to build an interesting combination of tokens and attract big investors, so that you could earn on the pool owner commission.
When setting up a pool, you can choose a commission, its value ranges from 0.5 to 5% (we recommend keeping it at 2%), which is divided into three parts:
- 10% of the commission is sent to the wallet of the pool’s owner,
- 50% go to liquidity providers (more on the mechanics here),
- 40% is the protocol fee, which is spent on staking rewards or redeeming and burning PUZZLE tokens.
Thus, the more interesting is your pool for investors, the more liquidity will be brought into it, meaning more trades conducted and more commissions collected, which will result in more earnings for the founder.
The future of custom pools
The development of custom pools will not stop with the current release. Over the next months, three additional features are planned to be gradually implemented.
Adding custom tokens
It will become possible to add a new token to a custom pool, that has not yet been listed on Puzzle Swap. This will allow projects to list their own token and create liquidity pools for it independently and very quickly.
Puzzle World launch
Puzzle World is a meta world where each piece of land can serve a different function, the main one being a megapool listing. Pools built on these pieces of land will be added to the aggregator, and their frequency of use will depend on the location of the land.
Pool Battles
The team draws inspiration from the Curve Wars concept, which involves a contest to divide the emission between liquidity pools on Curve.fi. A similar mechanic will be worked out and applied to custom mega pools on Puzzle.
As you can see, there are several major updates planned. To make sure you don’t miss out on any further details, join our community chat on Telegram!
The team is proud to present this update, as we managed to pack a very complex DeFi mechanism into 4 simple steps for the user. Together with the Puzzle aggregator, mega pools will be able to form a symbiosis never seen before in the Waves ecosystem or anywhere else in the entire DeFi space. In the coming months, we will focus on gradually explaining mega pool functionality to the public.
We’re not just seeking to repeat others’ success stories, we are striving to develop novel Web 3.0 mechanics. Puzzle shall shine!
PS: Custom pool limitations
The Puzzle team did their best to make such a complex update as the release of custom pools as user-friendly as possible. But still, we could not avoid two limitations, which you should be mindful of when creating a custom pool.
1.
Due to the script complexity limit, it is impossible to replenish a pool containing more than five tokens with a single token. After the Waves blockchain update 1.4 (Zegema Beach) release planned for June 2022, this feature will become available due to the increased script complexity limit of the smart contract. Also, after the 1.4 update, a more complex aggregator invocation will become possible, it will support up to 5 exchange paths for a single transaction.
2.
Because of the internal structure of the custom pool smart contract, it is impossible for the founder to withdraw 100% of the liquidity if he is the only liquidity provider. However, the withdrawal of 99% is possible. This restriction is caused by the fact that at least a small part of liquidity must always remain in the contract.
For a more in-depth look at custom pool smart contracts, use the open repository on GitHub.
