ExoniumDEX: Advantages of an Asymmetric Liquidity Pool 嘉库DEX：非对称流动资金池的优势
Liquidity pools in decentralised finance protocols will never be the same. 分散式金融协议中的流动资金池系统将在未来更加有效地运行。
As Exonium tech team is working hard on building world’s first omni-chain decentralized exchange with synthetic assets, it is important to educate new community members who are interested but may not have the background to understand some of our technical approaches in building ExoniumDEX.
This article is aimed to break down some key concepts for design decisions that are relevant to ExoniumDEX. Without further ado, let’s delve into today’s topic: Asymmetric liquidity pools.
Decentralized exchanges and liquidity pools
In many decentralized exchanges, users can add liquidity to liquidity pools and earn a portion of the transaction fees charged to other users who want to swap tokens in the pool. The constraint that most liquidity pools put on liquidity providers is that they must put in an equal value of each token pair. For example, in the ETH/DAI liquidity pool in Uniswap, a user is required to add 2.64 ETH for every 1,000 DAI that is added at the time of this writing. And then based on the amount the user puts into the pool, they then receive a proportionate amount of the fees charged.
What if users don’t have both tokens to add to the liquidity pool?
With ExoniumDEX, users who want to add liquidity to a pool can add any amount of either or both tokens. This is known as adding liquidity asymmetrically, which gives users ultimate flexibility. Based on the amount of tokens in the pool and the amount that the user adds, they will then own a percentage of the entire pool.
How is ownership % calculated?
The formula that is used to calculate ownership % is designed to incentivize users to keep the liquidity pool balanced. As one side of the pool increases, users can gain a higher % of the overall pool by adding tokens to the other side.
Below is the formula used to calculate the units owned by a user when they add tEXO or another asset to the liquidity pool.
slipAdjustment = 1- (Ta — tA)/(2t +T) X (a +A)
units = (P (Ta + tA)/2TA) X slipAdjustment
- t = tEXO deposited
- a = asset deposited
- T = tEXO Balance (before)
- A = Asset Balance (before)
- P = Existing Pool Units
The liquidity provider is allocated a portion of the fees collected from swappers proportional to their ownership of the pool. For example, If the liquidity provider owns 2% of the pool, they are allocated 2% of the fees collected.
How does the system ensure that there’s enough liquidity in a pool, if users only have to add one token in the pool and not both?
The interesting thing about the formula above is that it creates an economic incentive for users to balance the pool. If the pool gets too oversubscribed on one side, the formula gives users an incentive to add liquidity to the other side by giving them a higher ownership % to add to the side that needs more units to balance the pool.
In this liquidity pool, tEXO is oversubscribed at 10,000 compared to Token A at only 1,000. In scenario 1, Bob adds 1,000 tEXO to the pool, which gives him ownership of 4%. In scenario 2, Bob adds 1,000 to the undersubscribed side (Token A) of the pool, which gives him ownership of 20%. By rewarding users with a higher ownership % to add liquidity to the undersubscribed side of the pool, the system creates an incentive to balance the pool.
If a user only pools one side of the pool, what are they allowed to withdraw?
With an asymmetric liquidity pool, users are allowed to pool one side or the other, and they are allowed to withdraw one side or the other. Because the system calculates the user’s overall ownership at the time they added liquidity, it can now use that ownership % to calculate the amount(s) to withdraw.
At the time of withdrawal, the user specifies the following:
- Liquidity Pool: eg, tEXO: Token A pool
- Basis Points to withdraw from 0 to 10,000 (100%): The amount of their ownership that’s available for withdrawal.
- Asymmetry: It specifies how users wants to withdraw between the two tokens in the liquidity pool. The user can specify any decimal value between -1 and 1
* -1 means user wants to withdraw 100% tEXO
* 0 means user wants to withdraw equally on both sides of the pool
* 1 means they want to withdraw 100% token A
By using basis points and the asymmetry value, the system gives poolers a very high level of precision in specifying exactly how much to withdraw from each side of the pool. This differs from other symmetric liquidity pools, where poolers must withdraw equal value from both sides.
With that, we hope that you were able to get some key takeaways from this post, as we believe it is important for our users to understand the tools they are using. If you have any additional questions or would like to discuss with fellow community members, join our communities below!
ExoniumDEX — tEXO
ExoniumDEX is developing a blockchain-based platform that aims to provide a bridge between synthetic assets and fiat money, cryptocurrencies, stocks and other financial instruments.
The recent expansion of DeFi projects brought multiple innovative platforms to the ecosystem but most projects are still centralized or governed by a small group of participants making it difficult to make a smooth integration with other platforms.
We aim to aggregate all current and future DeFi applications under the same ecosystem that can be managed in a decentralized way without unnecessary fragmentation. This approach will allow for quick development and a more efficient market for users.
DeFi protocols like tEXO are the future for savvy investors to mitigate regulatory risk in a world of uncertainty. CEX can always pause withdrawals and has control over your funds. With a DEX, you remain in full control.
The future of finance belongs to the people.
在许多去中心化交易所中，用户可以在流动性池中增加流动性，并从向其他希望在池中交换代币的用户收取交易费用的一部分。大多数流动性池对流动性提供者的约束是，它们必须对每个代币对投入相等的价值。例如，在Uniswap的ETH / DAI流动资金池中，要求用户在撰写本文时，每增加1000个DAI，就要增加2.64 ETH。然后，根据用户放入池中的金额，他们将按比例收取一定的费用。
滑差 = 1-（Ta-tA）/（2t + T）X（a + A）
单位=（P（Ta + tA）/ 2TA）X滑差
t = tEXO存款
T = tEXO余额（之前）
嘉库DEX — tEXO