Bound Liquidity Pools
Last updated
Last updated
Creating a liquidity pool is not a separate and time consuming process. Anyone can optionally create a bound liquidity pool within the same transaction used to create their staking pool.
Geode's Liquidity Pools are optimized for staking derivatives:
Geode's liquidity pools provide better pricing by utilizing a stableswap pool with a dynamic peg. Meaning instead of using a pricing algorithm for the derivatives, it uses an algorithm for the underlying Ether.
When your staking derivative has a bound liquidity pool, Portal checks if there is a better price on the market before minting any new tokens.
Preventing any supply increase without balancing the demand, while giving your stakers a better price.
Using Geode Finance's liquidity pool allows your stakers to move their funds between different staking derivatives in just one transaction, with minimal slippage.
Conventional stableswap pools charge an admin fee up to 50%, meaning only 0.02% of 0.04% is shared with the LPs.
Geode Finance doesn't collect any admin fees on their liquidity pools.
Geode gives all of the 0.04% fee to the Liquidity Providers, resulting in a 100% increase on the base APR.
The Geode team is constantly working on improving The Staking Library with more functionalities.
There are many features that might require having a bound liquidity pool in the future.
If your pool has a bound liquidity pool, your stakers will be able to utilize these, and many other futures instantly.
Such as:
