Tokemak: liquidity rental-as-a-service
Quick Take
- Tokemak deploys protocol-controlled assets into providing liquidity on outside trading venues. TOKE stakers direct the liquidity and backstop the protocol in case of extreme protocol losses.
- Liquidity providers lend assets to Tokemak in exchange for inflationary TOKE rewards. They are made whole by protocol reserve and TOKE stakers in case of extreme protocol losses.
- It is unclear how Tokemak would combat impermanent loss incurred from providing passive liquidity.
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Author: Eden Au
