An integral part of any decentralised exchange (DEX) are its pools. That is the different token pairs that allow anyone to trade the tokens in the pool at anytime.
Without pools there is no DEX.
Not all pools are created equal in CarbSwap. We have 3 different types of pools, they all fundamentally work exactly the same way. But how those pools were first created is different.
Genesis ( & Native ) Pools
Genesis pools are those that we will launch CarbSwap with. The initial liquidity for these pools was provided through fundraising with an initial sale of GRPH on ZilSwap. We detailed that process in another blog post which you can read about here.
The liquidity provided by ourselves into these pools will never be removed. And any rewards earned from this liquidity will be burned.
We will launch CarbSwap with the following pools & rewards:
- GRPH / CARB - will reward 10 million GRPH tokens for LPers in year 1
- ZIL / CARB - will reward 4 million GRPH tokens for LPers in year 1
- ZUSDT / CARB - will reward 4 million GRPH tokens for LPers in year 1
The GRPH rewards will not be reduced in year 1. At the end of year 1, a democratic process will be used to determine ongoing reward amounts.
As well as the Genesis pools, there may be other pools that we create at a later date. These pools we call native pools. Native pools are those that we provide the initial liquidity for. Genesis pools therefore are also native pools, the only difference is that the Genesis pools existed from day 1.
These are pools where we (Carbon) have been given tokens by the token owner for the sole purpose of providing liquidity for that token on CarbSwap. We provide the matching CARB and launch the pool.
The liquidity provided through this partnership will never be removed (unless the project is identified as a SCAM).
Essentially we are ensuring that the token owner can not rug pull their tokens from CarbSwap - ensuring that there will always be some liquidity. We will highlight the pools that have this protection in place and will work with the likes of ZilStream to show this information as well.
The amount of rewards that these pools can earn will be based upon the value of the liquidity initially provided. We will be targeting an initial APR of 1000%
Just like with the Genesis Pools, the liquidity provided by ourselves as a partner with the token owner will have their rewards burned. The token owner will also not receive any rewards.
These are pools that are created by anyone else. As a DEX, we believe it is important that anyone at anytime can create a pool for any token they wish. But that also comes with risks, the person starting the pool may price it incorrectly or there is risk that the token has been created with the intention of doing a rug pull.
To be very clear, we are not saying that every public pool created is risky. We are simply cautioning based on history on other exchanges.
What we can do to help is to limit these pools from receiving rewards without meeting certain conditions. These conditions may seem harsh and controlling, but they serve to protect the wider community... a genuine project will work hard to give their token value and recognition outside of the DEX itself.
The DEX rewards should not be the primary goal of a token launching within a DEX.
As it is likely that the conditions for a public pool will change over time. We will have a dedicated blog post that will be updated as and when necessary outlining the requirements.