Liquidity Pools

Equalizer is an AMM which uses the traditional liquidity pool system to create tradable pairs. The system we have deployed is, in our opinion, an improvement on the uniswap system that uses fees to incentivize these pools. Instead, we use a continuous loop system to utilise tokens tied to the fees to incentivize our system. This system creates an equalized situation which can allow for token utility and growth.

The reason we have selected this model is to empower the use of our token and create a system where people lock the token for the benefits it provides.

The incentive system will provide a steady loop of incentives to ensure a low slippage trade can be completed with fair fee charges.

Fees

Equalizer has set the fees at a rate of 0.2% per trade for volatile pairs and 0.02% for stable pairs. This fee with the acceptance of the community on either type of pair can be altered on a per-pool basis. This fee structure supports the promotion and retention of liquidity, which is essential for maintaining low slippage trades during various phases of the market.

Most of the AMM’s in the market use a similar fee amount to reward Liquidity Providers. From our detailed research, we have found that this fee is necessary to sustain a healthy environment for attracting liquidity. One should not focus only on the fee amount, but the efficiency of the trade that they can complete on the AMM. For this reason, the Equalizer model is the first of its kind to create a sustainable dex that supports the equilibrium required to maintain an effective balance to LP providers and token holders for stable and volatile assets.

Types of Pools

Equalizer v1 comes with 2 basic types of liquidity pools

Stable Pools

Stable pools are designed for assets which have little to no volatility. This means that the formula used for pricing the assets allows for low slippage, even on large traded volumes.

x³y + xy³ = k

Variable Pools

Variable pools are designed for assets with high price volatility. These pools use a generic AMM formula.

x × y = k

Equalizer v2

Equalizer v2 is capable of hosting multiple types of liquidity

Multi-token pools

A weighted mix of upto 8 tokens inside a single pool.

Stable & MetaStable pools

Equi-weighted pools containting upto 4 Correlated Assets, such as a pool of multiple Stablecoins or a pool of a Base asset and its Syntheic Derivates, such as Liquid-Staking Derivatives or Interest-Bearing Assets

Concentrated Liquidity

Equalizer v2 can natively support Conentrated Liquidity NFTs for staking, voting, trading & market-making. Additionally, it also supports L2 wrappers of A.L.M. platforms that tokenize Concentrated Liquidity.

Derivatives Trading Vault

Equalizer’s v2 also brings in support for Vault receipts of a Derivatives platform, such as the EQUITY token from our Equity DEX.