In-Depth

Creating a Pool

Any user has the liberty to establish a Pool, tailoring parameters as they see fit for any market. Pool creators have the autonomy to set and potentially profit from fees. However, the Reference Pool we created does not have a fee set.

Pool Token

Upon investment in the Pool, users are granted Pool Tokens that are compliant with the ERC-20 standard, serving as a testament to their investment. Post the inception of the Pool, the creation or annihilation of Pool tokens is strictly contingent upon deposits or withdrawals.

Pool Valuation

A Pool's worth is derived from the aggregate of the liquidity it furnishes and the pending settlement tokens awaiting liquidity allocation.

Pool Token Pricing

The Pool Token's price is ascertained by the equation:

Pool\;Token\;Price = \frac{Valuation\;of\;Pool}{Number\;of\;Total \;Issued\;Tokens}

Deposit to Pool

From Depositor: When depositing settlement tokens into the Pool, depositors are compensated with Pool tokens calculated as:

To Pool: Upon deposit, the settlement token is promptly channeled to the appropriate bin, based on the predetermined Bin Allocation Ratio.

Withdrawl from Pool

To Withdrawer: Initiating a withdrawal necessitates the return of the Pool tokens to the Pool. The amount disbursed to the withdrawer is:

From Pool: Upon receiving a withdrawal request, a proportionate amount, calculated as:

is retrieved from each bin and the Pool's settlement token reserve to be remitted to the withdrawer. Concurrently, the returned Pool tokens are obliterated. In scenarios where a bin's liquidity is insufficient, the deficit is offset from the settlement token reserve. If this reserve falls short, the Pool tokens equivalent to the uncovered value are reverted to the withdrawer.

Keeper Cost

The keeper's cost, which is used for rebalance costs of the Pool, is used from the settlement token holdings in the Pool.

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Last updated 10 months ago

Deposit to Pool

From Depositor: When depositing settlement tokens into the Pool, depositors are compensated with Pool tokens calculated as:

Pool\;Tokens\;Received = \frac{Deposit\;Amount}{Current\;Pool\;Token\;Price}

To Pool: Upon deposit, the settlement token is promptly channeled to the appropriate bin, based on the predetermined Bin Allocation Ratio.

Withdrawl from Pool

To Withdrawer: Initiating a withdrawal necessitates the return of the Pool tokens to the Pool. The amount disbursed to the withdrawer is:

Settlement\;Tokens\;Received = Current\;Pool\; Token\;Price \times Number\;of\;Pool \;Tokens

From Pool: Upon receiving a withdrawal request, a proportionate amount, calculated as:

Proportion = \frac{Number\;of\;Returned\;Pool\;Tokens}{Number\;of\;Total \;Issued\;Tokens}

is retrieved from each bin and the Pool's settlement token reserve to be remitted to the withdrawer. Concurrently, the returned Pool tokens are obliterated. In scenarios where a bin's liquidity is insufficient, the deficit is offset from the settlement token reserve. If this reserve falls short, the Pool tokens equivalent to the uncovered value are reverted to the withdrawer.