The Final Phase Before Liquidity Deployment
Tokemak is rapidly approaching active liquidity deployment, targeting launch in January. To prepare for this final phase, we’re aggressively expanding and evolving our Genesis Pools into Pair Reactors which will accommodate deposits for a significant amount of DeFi-native stablecoins.
Ultimately, the Pair Reactors will provide TOKE holders the power to determine what stablecoin should be the dominant pair with an asset, through a wide range of options. The Pair Reactors will allow Tokemak and its liquidity deployment to scale at an incredible pace, including a strategic accumulation of a variety of assets for Tokemak’s PCA reserve.
In contrast to Token Reactors, when staking TOKE to a Pair Reactor, Liquidity Directors don’t vote those assets to exchanges. Rather, they play an instrumental role in balancing and determining the depth of reserve of those Pair Reactor assets, in addition to collateralizing them. This is essential for the system at large when LDs begin voting assets to exchanges from Token Reactors (starting in January).
Including ETH and USDC, the first batch of new Pair Reactors include: DAI, FEI, FRAX, LUSD, and UST.
Introducing the Pair Reactors (tl;dr)
- The Genesis Pools, the ETH + stablecoin pools used as pairs to assets in Token Reactors, are expanding and evolving into Pair Reactors
- The following Pair Reactors are now live: ETH, USDC, DAI, FEI, FRAX, LUSD, and UST
- There will be staked TOKE voting to the LD side of each Pair Reactor, to balance and determine the depth of reserve of those Pair Reactor assets, in addition to acting as Reactor collateralization
- ETH and USDC depositors currently in the Genesis Pools won’t need to migrate — they’ll automatically be staked in the ETH and USDC Pair Reactors
- The addition of these stablecoins as Reactors is paramount to scaling liquidity quickly and expanding Tokemak’s potential for being the central liquidity machine for DeFi
- The UI will be updated to show the Pair Reactors similar to Token Reactors, with the TOKE voting purse located above them
Time to ‘Stable-ize’ the Reactors
The Pair Reactors, through collateralization and balancing by TOKE stakers, will allow Liquidity Directors to harness a wide range of stablecoins (and ETH) as liquidity pairs throughout DeFi. Through rewards incentives, this Pair Reactor configuration will achieve an equilibrium based on needs per Pair asset. If that sounds confusing, it effectively means there is a system-wide balancing game occurring in order to achieve optimal liquidity deployment.
Liquidity Wizard will be penning an article this week about Reactor balancing, which gives insight into how the balancing act across all Reactors works based on game theory, incentives, and ultimately for the benefit of deep liquidity. The docs (GitBook) will be updated with Pair Reactor information over the next few days.
The primary TOKE staking, as well as Sushi LP and Uni LP pools, will remain above the TOKE voting bar as usual.
The new Pair Reactors will now exist below the TOKE voting bar, similar to Token Reactors (separated by sections — Pair Reactors and Token Reactors):
The Pair Reactor and Token Reactor sections can be collapsed for ease of navigation by clicking on the section headers:
Remember, similar to Token Reactor voting, to earn Pair Reactor APR you must vote your staked TOKE allocation to the Pair Reactor, then submit your votes:
This will trigger a wallet signature and your staked TOKE votes will be allocated to that Pair Reactor, and you will begin earning at the start of the next Cycle.
Note: when active liquidity deployment does go live, ETH will be utilized as the sole pair for a brief period while the system is carefully monitored and calibrated. When the early ETH phase of liquidity deployment has reached cruising altitude, we’ll transition into Liquidity Directors being able to select from different Pair Reactors for each Token Reactor asset.
Shortly before active liquidity deployment, we’ll be implementing a UI update that will allow LDs to experience the granular ability to vote specific assets in Token Reactors to an exchange of their choosing. This will be another short phase of introducing new concepts in the UI in order to make any necessary adjustments before deployment goes live. Prior to this phase, we’ll release another article detailing the UI updates.
More on the Horizon
As mentioned a few days ago in our timeline update article, there’s much more in store for Tokemak in the next few months, including things yet to be revealed.
Tokemak’s implementation of the Pair Reactors will rapidly advance the approach to “the singularity.” It not only strengthens Tokemak’s PCA, but will demonstrate its power through deepening liquidity of DeFi-native stablecoin pairs, something yet to be truly experienced.
Liquidity deployment is just around the corner, and Q1 will truly mark the beginning of Tokemak’s evolution as the liquidity engine of DeFi.
The Final Phase Before Liquidity Deployment: Pair Reactors and Exchange Voting was originally published in Tokemak on Medium, where people are continuing the conversation by highlighting and responding to this story.