Liquidity Pool

DegenHive allows users to easily create AMM Pools supporting 2 or 3 coins per pool.

Automated Market Makers (AMM) pools facilitate the trading of digital assets in a permissionless and automated manner through liquidity pools, eliminating the need for a conventional market with individual buyers and sellers. AMM users supply liquidity pools with tokens, where these pools could be optimised for different purposes.


AMM Pools in DegenHive

DegenHive accommodates three distinct pool types, each tailored to cater to various liquidity provision strategies and trading requirements of protocols leveraging the Sui network.

  1. Passive Concentrared Liquidity

Concentrated liquidity allows liquidity providers to focus their capital within a specific price range, maximizing their earnings. DegenHive PCL pools utilize:

  • Bonding Curve: Adjusted with parameters for fine-tuning liquidity concentration and pricing.

  • Price Scaling: Dynamically adjusts to provide deep liquidity around the current market price.

  • Dynamic Fee Mechanism: Fees change based on pool balance, rewarding liquidity providers during periods of imbalance.

  1. Stableswap

Designed for trading assets with closely correlated prices (such as stablecoins), Stableswap pools minimize slippage and offer greater efficiency for these trades.

  1. Weighted

Weighted pools support a wider array of assets and allow for customizable ratios. Prices are determined based on pool balances, weights assigned to individual assets, and the size of the trade.

Note : DegenHive pools come with built-in functionality for flash loans and cumulative price calculations, offering developers the capability to construct TWAP (Time-Weighted Average Price) oracle feeds for tokens traded on the protocol.

Protocol Fee Structure

All accumulated protocols can be converted to hSUI via public functions. The accumulated hSUI fees are distributed among two key shared objects:

  1. hSUI Treasury: A portion of the fees is allocated to the hSUI Treasury, where the use of these funds is governed by proposals put forth through degenHive governance.

  2. hSuiDisperser: The remaining hSUI fees are distributed proportionally among hiveProfiles based on their respective voting power.

Also Read

Liquidity Pool Modules : Under the hood

PoolHive : Micro Governance

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