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Liquidity Modules

Protocol controlled liquidity is a module that allows the protocol to own and control the majority of protocol and treasury assets (i.e., USX, DF, etc) in the open market. It offers several advantages:

  • Maximize liquidity and improve capital efficiency - it combats liquidity shortage of USX effectively by adding or removing protocol owned liquidity in response to market demands.

  • Significantly reduce DF inflation by cutting off subsidies on rented liquidity.

  • Now the protocol owns the majority of DF liquidity in DEXes (i.e., DF/USX pairs), which helps the protocol to generate more revenue from LP fees.

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Last updated 1 year ago