Tokemak (TOKE)

What is Tokemak?

Tokemak is a financial project that creates sustainable and capital-efficient DeFi liquidity markets. Specifically, the goal of the project is to be the source of all liquidity and deliver these assets to other places.

How Tokemak works

Back to Tokemak, the project will attract assets to Reactors (like Pool) with an attractive yield, then reward users with TOKE - project tokens. Where this liquidity flows will be decided by the community by Stake TOKE. Like other forms of governance, the more the TOKE is locked, the more weight the brother's voice has.

The characteristics of Tokemak can be summarized as follows:

Users deposit assets and because of interest, receive TOKEs ⇒ Tokens will increase in price because more and more assets are controlled ⇒ Users deposit more assets to get TOKEs ⇒ Liquidity is getting higher and higher, leading to “deep liquidity” ” for end projects.

Who will be the users of Tokemak?

Tokemak's users will include:

Liquidity Provider: Any user can deposit single assets (single side deposit) into the network to be used as liquidity and receive interest.

DAO: Project administration, directing the liquidity flow about their project based on votes.

Other projects: Projects can use Tokemak to create a Reactor for the project itself. With this step, I think this is a way of marketing the project, if Tokemak receives the support of the community. In addition, Tokemak will help the liquidity of this partner project work better.

Market Makers: MMs can take advantage of this liquidity to put on exchanges

The Singularity

While both liquidity providers and liquidity directors earn high yields from TOKE emissions, the trading fees accrued from providing liquidity also need somewhere to go. 

All of the revenue the protocol makes on a whole-systems level go into Tokemak’s treasury pool, dubbed the “Protocol Controlled Assets.” This pool uses the same assets to further provide liquidity on different protocols and cover liquidity providers for impermanent loss. 

Over time, the goal is to grow the Protocol Controlled Assets pool reserve big enough for the protocol to tighten up the TOKE monetary supply and start paying out a portion of the revenue rather than TOKE as liquidity provider rewards.

Carson anticipates that, in the future, Tokemak’s DAO could vote to pay out the yield generated from the Protocol Controlled Assets treasury pool to TOKE holders or use the yields to burn and redeem TOKE to put deflationary pressure on the token. In either outcome, as members of the Tokemak DAO, TOKE holders effectively have a pro-rata claim on the treasury, which indirectly gives them exposure to a diversified pool of revenue-generating assets.

This is where the idea of seeing liquidity as infrastructure crystalizes. Tokemak effectively wants to become the sole decentralized liquidity provider across the decentralized finance ecosystem. Just as Amazon Web Services revolutionized data hosting by providing on-demand cloud computing to IT businesses, Tokemak hopes to revolutionize blockchain liquidity by providing Liquidity-as-a-Service to DeFi projects.

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