Staking and Liquidity Mechanisms
Last updated
Last updated
The $AAA token encapsulates a profound utility that transcends mere transactions, embedding itself as an integral part of the platform's engagement, financial, and governance frameworks.
All-Access features 80/20 pools where $AAA and stETH are combined in a ratio of 80% and 20% respectively. This offers several advantages for both liquidity providers and traders, making it an appealing choice for a protocol:
Liquidity and Fees Balance: Provides a good balance between liquidity and fees. The larger $AAA proportion facilitates easy trading and ensures sufficient liquidity, while the stETH pool allows users to earn fees for providing liquidity to the pool, establishing a source of passive income.
Reduced Impermanent Loss: Mitigates impermanent loss compared to a 50/50 pool, as the majority of the pool’s value is concentrated in one asset.
Asset Value Impact: Helps determine the value of assets in the pool and fees that LPs can earn. If the value of the dominant asset increases or decreases, the value of pool and provider fees match the fluctuations.
Deeper Liquidity and Democratised Distribution: Helps foster deeper liquidity in $AAA and democratises the distribution of $AAA liquidity mining every week.
Informed Decisions and Risk Management: Enables traders and liquidity providers to make informed decisions by assessing pool performance, evaluating potential profitability, and managing the risk of impermanent loss.