Weighted Pools are liquidity pools used in Decentralized Exchanges (DEXs) that enable users to create pools with custom weightings for different assets. Why use it? 3 key benefits:
• Minimize Investment Risk.
Impermanent Loss (IL) occurs when an asset’s value fluctuates due to external market changes, which is common in rapid-growing ecosystems like TON. This change isn’t realized within a liquidity pool until the asset is withdrawn, as its price can revert to its original value. Using weighted pools can mitigate IL. Pools that heavily weight one asset over another (95/5) experience significantly less IL compared to pools with equal weightings (50/50).
• Activate Your Idle Crypto Assets.
Using a weighted pool allows users to create/join a pool with different assets in a variety of weighted combinations, which allows users to align more closely with their desired portfolio allocations and without fees to 3rd Party.
• Dynamic Swap Fees.
Weighted pools can adjust swap fees to match market demands, optimizing payments to liquidity providers based on current conditions. This flexibility allows for higher fees during market volatility and lower fees during high-competition periods, benefiting providers and traders.
Official Links
LayerPixel: Homepage | Twitter | Channel | Community | Medium | Bot |
PixelSwap: Homepage | Twitter | Channel | SWAP | Pool
PixelDAO: Twitter | Forum | Chat Group