Name of Project
GEMINUS, Shared Liquidity Protocol
Ticker for Token
1) In one sentences or less, describe your token. This isn’t the time to get wordy, just to the point!
Provide liquidity adding only 1 pair and prevent impermanent loss.
2) Do you have a video to introduce yourself or explain the token? Upload it here and share the link here. (Not required)
3) Do you have a logo for your token? If so, upload it here. (Not required)
4) How does your token work? Be as detailed as possible
Governance, POV, staking.
5) What problem is your token aiming to solve? How will this positively impact the crypto industry?
1 Not enough liquidity
2 Impermanent loss
Actual problems to solve and solution:
1.Enough tokens but not enough liquidity, enough liquidity but not enough tokens, to solve this problem we can share both of them (Liquidity or Tokens) between two providers.
Liquidity (L) Provider (P, P1, P2…)
Tokens (T) Liquidity Pool (LP)
Using a book of Providers that count (L) or (T) added by each ( P ) we can set a (LP) once (L) and (T) are the same value.
DAI/ETH Pool example.
Provider Share Token Value $ P1 (T) 300 DAI 300$ P2 (T) 190 DAI 190$ P3 (L) 1 ETH 300$ P4 (L) 3 ETH 900$
(P1) and (P2) value its the same and finally the liquidity can be added.
2.How to solve the impact price that will receive the pair if (T) and (L) is divided between both providers? In a normal liquidity pool, if (L) or (T) changes their prices your liquidity will be affected, the loss is the same whichever direction the price change occurs in. From the Book of providers we select both providers that match in the same Value added. So let’s look at the impact of a price change on a liquidity provider. To keep things simple, let’s imagine our (P1) supplies 1 ETH and (P2) supplies 100 DAI to the Uniswap DAI exchange, giving them 1% of a liquidity pool which contains 100 ETH and 10,000 DAI.
P1 (T) 100 DAI 100$
P2 (L) 1 ETH 100$
This implies a price of 1 ETH = 100 DAI. Still neglecting fees, let’s imagine that after some trading, the price has changed; 1 ETH is now worth 120 DAI. What is the new value of the liquidity pool?
eth_liquidity_pool = 91.2871
dai_liquidity_pool = 10954.4511
Since our liquidity providers has 1% of the liquidity tokens, this means they can now claim 0.9129 ETH and 109.54 DAI from the liquidity pool, we might prefer to convert the entire amount into DAI to understand the overall impact of the price change.
At the current price then, our liquidity is worth a total of 219.09 DAI. So our liquidity providers lost out by 0.91 DAI [by providing liquidity to Uniswap instead of just holding onto their initial ETH and DAI. This loss is only realized when (P1) or (P2) withdraws their liquidity before the price return to the same value as when the liquidity provider added their liquidity, this loss would disappear.
So now to solve this problem what is needed? We need to adjust the eth_liquidity_pool (from fees or individual ( P ) again and match it with the same amount of DAI with the new price impact added
eth_liquidity_pool 91.666667 ETH dai_liquidity_pool 11000 DAI
In fact we only need to remain the inicial value of total liquidity + and add the % earned by the token (ETH growth 20% in that example) between both so the pool remains stable.
Now we repeat the equation, our liquidity providers has 1% of the liquidity tokens, this means they can now claim 0,9166666 ETH and 110 DAI from the liquidity pool, if we convert the entire amount into DAI, our liquidity is worth 220 DAI and we don’t suffer the impermanent loss.
Finally we have equivalent balances for each provider, none of then suffer the problem of impermanent loss and both of them get earnings taking advantage of the new high price.
This can be done better with providers that add only 1 token, just because we will be able to control future impermanent loss from pools if needed.
6) What was the inspiration of this token? How did you think of it?
Usually I don’t have enough liquidity or tokens to join a pool and also impermanent loss
7) Are there any projects out there doing something similar?
I don’t think so
8) What phase is the token in? Explore vs. Build vs. Launch vs. Scale. (If there has been no coding yet, your token is in the explore phase)
9) Will this token be inflationary, deflationary, fixed, or dynamic token supply?
Dinamic to remain the price stable and use it as a pair to control the impermanent loss
10) How long do you think it would take to build a minimal viable token?
I don’t know
11) What skills do you have that would help bring this token to reality? (ex: Marketing, Development, Branding, etc)
12) Are there any inherent weaknesses or obstacles to building this token? Any items you still need to figure out?
I don’t know anything about coding
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