Through a seamless decentralized market-making protocol, Tokemak aspires to generate long-term liquidity and capital-efficient markets throughout DeFi. It also offers solutions to liquidity providers who do not want to be victims of impermanent loss.
$TOKE Powering the Tokemak protocol: $TOKE token directs available liquidity on the platform, making it an essential element of the protocol. Value accrual: $TOKE token accrues value generated by the protocol, such as fees and rewards, providing an incentive for users to hold it. Governance: $TOKE token holders can vote on which token reactors can launch on the protocol, providing a decentralized way to govern the platform.
Liquidity Direction: Traders and liquidity providers buy and hold $TOKE to direct and secure liquidity in a sustainable way on the Tokemak protocol, driving demand for the token. Liquidity Volume: Increased liquidity on the platform drives demand for $TOKE as more liquidity can be directed, increasing the capital efficiency of the protocol.
The Tokemak protocol creates value for a myriad of parties. For protocols/DAOs wanting to secure liquidity, it allows them to do so sustainably and capital-efficiently and earn a yield on their treasury assets; for liquidity providers, it allows them to provide single-sided liquidity, i.e., no impermanent loss; and for $TOKE holders through governance (over which token reactor can set up shop).
The Tokemak protocol captures value by taking 100% of the trading fees generated by deployed liquidity. Apart from that, the protocol also captures value by generating a yield on the assets held in the treasury.
The business model for Tokemak Protocol: Revenue comes from: Trading fees generated by liquidity pairs Revenue is denominated in: Whatever protocol owned liquidity (PoL) assets are being used to generate fees Revenue goes to: Protocol treasury, which earns a yield on underlying assets, and is used to provide liquidity to the platform when sufficiently large. Protocol takes 100% of trading fees.
|Problems & Solutions
Problem: Mercenary liquidity in DeFi causes impermanent loss for liquidity providers who are unwilling to take risks. This limits long-term liquidity and capital-efficient markets. Solution: Tokemak offers a decentralized market-making protocol to generate long-term liquidity and efficient capital markets. It addresses the issue of impermanent loss for liquidity providers, creating a safer and more sustainable environment for DeFi.
Curve Finance: A decentralized exchange focused on stablecoins and low-slippage trades, with an emphasis on providing liquidity for stablecoin pairs. Balancer: A protocol for creating and managing automated market makers that enables flexible liquidity pools and customizable trading fees.
... coming soon
The Tokemak protocol is announced
The protocol and the Degenesis (LGE) are launched
Locked $TOKE (accTOKE) is launched