Liquidity pools

Liquidity pools, Swaps and Prices

The Vault contains all the liquidity pools of the protocol. There are initially six pools. For each future DUCA-Backed Asset an additional pool will be created. The Vault is not subject to the Stability Fee.

Endogenous Pools

Endogenous pools are the pools that only contain tokens from the Protocol.

DCM / DUCA POOL

  • 50/50 Weighted pool

  • Price feed function for DCM in DUCA

  • 0,3% Transaction fee

DUCA / DUS POOL

  • Composable pool with rate provider; 1 : DUCA Exchange Value in USD

  • Provides deep liquidity for DUCA

  • 0,1% Transaction fee

LPD / DCM POOL

  • Composable pool with rate provider; 1 : lpRATE

  • 2% Exit fee is applicable to LPD (applicable when LPD is the input token). The fee is paid in LPD and will be burnt directly.

  • 0% Transaction fee

FUTURE POOLS: DUCA / DUCA-BACKED ASSET

  • Composable pool with rate provider; 1 : DUCA Exchange Value

  • 0,1% Transaction fee

  • Future DUCA-Backed Asset pools pegged to a FIAT currency

Exogenous Pools

Exogenous pools are the pools that also contain tokens from outside the Protocol.

DCM / USDC POOL

  • 50/50 Weighted pool

  • Price feed function for DCM in USDC

  • 0,3% Transaction fee

DUS / USDC POOL

  • 50/50 Stableswap pool

  • Provides deep liquidity for DUS

  • 0,1% Transaction fee

ETH / DUCA POOL

  • 50/50 Weighted pool

  • Makes ETH available to the Protocol

  • 0,3% Transaction fee

Swaps

A user can provide an input token and a desired output token for a swap to interact with the DUCA Market Maker via a 3rd party interface such as a DEX Aggregator. All swaps are subject to a capped maximum of 3% of the total balance of the input token of the target pool.

  • USDC, DUS, DUCA, DCM, LPD, ETH in

  • USDC, DUS, DUCA, DCM, LPD, ETH out

  • All possible combinations

  • All gas fees following a (routed) swap are paid by the user.

TRANSACTION FEE

Swapping tokens is subjected to a transaction fee. The transaction fee is taken over the input token and added to the Operating Fund. The transaction fee can vary per pool but in the case of a routed swap only the highest fee is applicable to the whole transaction.

In the case of the Exit Fee that is applicable to LPD, the fee (in LPD) will be burnt.

Price Feeds & Oracles

The DUCA Market Maker needs to produce various price feeds based on market values for the AMO and the DUCA Core, where needed. The following price feeds are generated based on 5 blocks / 1-minute TWAP (Time Weighted Average Pricing).

TWAP PRICE FEEDS

  • DCM Market Value in DUCA

  • DUS Market Value in USDC

  • DCM Market Value in USDC

  • DUCA Market Value in USDC

ORACLES

The following price feeds are provided by oracles:

  • DUCA Exchange Value in USD (Chainlink)

  • USDC Market Value (Chainlink)

DUCA CORE

The following data is provided to the DUCA Core

  • DUCA Exchange Value in USD

  • DCM Market Value in DUCA

  • DUCA Market Value in DUCA

RATE PROVIDERS

The liquidity pools that make use of a rate provider need to receive accurate rates. Rates need to be updated when deviancies exceed threshold values. This includes the calibration of the weights concerning the DUCA Exchange Value.

USDC CIRCUIT BREAKER

In the event the Chainlink price oracle indicates that USDC has broken its peg, the DMM will no longer accept USDC as an input token until the USDC peg has been fully restored. It remains possible to swap tokens with USDC as an output token valued at 1 DUS.

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