Pilot Manual: Introduction to Liquidity Directing

Tokemak Pilot Manual Introduction to Liquidity Directing - 101 Level Reactors Course

Pilot Manual: Introduction to Liquidity Directing

101 Level Reactors Course

Transcript


Introduction to Liquidity Directing

Liquidity Directing is a Tokemak Pilot's primary responsibility.

Staking TOKE grants users a proportional amount of voting power.

Votes are used to determine where liquidity from a given Reactor will flow.

Voting does not require paying gas fees, and Pilots can reallocate votes at any time.

Pilots may allocate their votes across multiple Token Reactors.

Simply allocating votes to a Reactor is all that is needed to become a Liquidity Director and receive TOKE rewards.

But experienced Pilots may enable Pro Mode for an additional level of granularity beyond the default.

With Pro Mode enabled, votes may be allocated to specific exchanges, such as Curve, Uniswap, Sushiswap, and Balancer.

APR is not affected by choice of destination venue, but external incentives such as bribes may sway Pilots to vote for certain Reactors and venues.

At the beginning of each cycle, Liquidity for all Reactors is redeployed based on committed votes.

Yield generated from Liquidity Deployment is returned to Tokemak’s treasury of Protocol Controlled Assets.

Combined with assets from strategic investments and DAO partnerships, this yield contributes to the end goal of achieving The Singularity.

This concludes the Introduction to Liquidity Directing course.

Refer to Tokebase.org for additional training materials.

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