Liquidity Protocol
Overview
Diamonde was the first to propose the concept of Protocol Owned Liquidity (POL), which ensures the liquidity of DIA holders without relying on liquidity mining incentives. POL manifests in several forms: dex based liquidity and RBS swaps. In addition, Cooler loans based on governance set parameters provide extremely deep liquidity relative to the DIA market by allowing users to achieve underlying support. This ensures that users and protocols can always exchange DIA, regardless of market conditions and external events.
Dex POL is stored in the DIA/wETH DiamondeSwap v3 pool. This pool is intended to provide permanent liquidity, but may be subject to changes through governance.
RBS provides DIA/USDT liquidity. Through RBS, the balance between reserves and liquidity is algorithmic, with the goal of optimizing liquidity depth and reserves to achieve robustness and long-term market stability.
Source of Funds for DIA Treasury Pool
In the early to mid stage of the protocol launch, the focus is on attracting sufficient funds to inject into the national treasury fund pool. The larger the fund pool, the more it can support larger trading volumes. At this stage, the protocol adjusts the discount ratio (discount) for various assets to mint DIA, including risk assets such as BTC and ETH, stablecoin assets such as USDT and USDC, and DIA-USDT-LP assets. Due to the existence of arbitrage space, users are willing to use these assets to mint $DIA in the national treasury. At this time, the national treasury fund pool becomes increasingly large
Unique operating mode
Unlike traditional DEX and CEX, DIA does not use AMM and order book mechanisms, but instead uses DIA's treasury fund pool. The treasury fund pool consists of a basket of blue chip cryptocurrencies, including mainstream cryptocurrencies such as BTC/ETH/USDT and stablecoins, to meet the needs of users for spot and derivative trading.
The proportion of risk assets (assets with price fluctuations) and stablecoin assets in the national treasury fund pool is 50/50, fluctuating around 5%.
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