Protocol controlled assets

The protocol controlled reserve of assets includes all the cumulative sum of rewards/fees received by deploying the liquidity from all the pools . These assets are used to mitigate the IL risk of Liquidity providers and plays a major role in reaching the protocol ideal stage where Deliq infrastructure becomes self sustainable.

Example :

Suppose there are two token pools in Deliq ecosystem ABC pool , PQR pool ,

  • The fees generated by liquidity provisioning to the pairs ABC/AVAX , ABC/USDC , PQR/AVAX , PQR/USDC will be combined to form PCA .

  • PCA will contain ABC token , PQR token , AVAX , USDC.

  • These assets will be used to pay for the IL mitigation.

Last updated