Quick Guide to Torah v1
Basics of being a Torah liquidity provider
Last updated
Basics of being a Torah liquidity provider
Last updated
It can be challeging starting with Torah. This quick guide is intended for Torah beginners to have a better understanding of DeFi and Crypto. It explains how Torah works and how it makes money for liquidity providers.
Torah Finance is a safe and efficient decentralized trading platform for digital assets, aiming at providing a good on-chain environment with low slippage, good depth and low transaction fees. Users can trade ERC-20 tokens on Ethereum safely and stably. The trading model is a mixed liquidity pool, which provides a cross-market mechanism for creating stablecoins, which can meet the requirements of multiple stablecoins vs. non- stablecoins and multiple non- stablecoins vs. multiple non-stable tokens.
Torah Finance provides liquidity pools to the market and rewards users who provide liquidity (also known as liquidity providers). Torah finance charges a small transaction fee, of which 50% goes to Liquidity Providers and 20% to used to repurchase TRH, the other 30% is distributed by a proposal led by the Torah DAO.
TRH token is Torah's token which can be traded or locked to gain veTRH
No. Torah can only be used on Ethereum, you can use cross-chain bridges to span assets to other chains.
All new Torah pools are permissionless deployed through the Torah Factory. This means anybody can deploy a pool anytime anywhere. For more details, please check our Factory Pools section.
DEFI have become an inherent part of cryptocurrency for a long time but they now come in many different branches （DEX, Lending,Stablecoins, Derivatives and so on) which means cryptocurrency holders have to find a proper exchange to swap. The problem with some of the DEXs, however, is that their vault revenue is unrelated to the token holders.
Torah was created to better address the relationship between vault revenue and token holders.
Torah also offers other Crypto Pools to bring the same simplicity and efficiency of Torah's stablecoin pools to transactions between differentially priced assets (ie BTC and ETH). These pools are sufficiently different to justify their own section:
Crypto pools are Torah pools holding assets with different prices. Torah originally was pegged assets but a new type of AMM allows for extremely efficient trading and low risks of non pegged assets.
Crypto pools use liquidity more effectively by concentrating it at current prices. As trades happen, the pool readjusts its internal price to the highest liquidity region without creating losses for the pool. Crypto pools also have variable fees which can range between 0.04% and 1%.
Becoming a liquidity provider in a Torah Crypto pool is in all ways similar to stable pools. You will gain exposure and risks to all assets in the pools. You can deposit one or all the coins in the pool. Always be sure to check the bonus/slippage warning box.
When the slippage warning box turns grey, please take care to keep it balanced when adding liquidity to avoid losses
Fees on those pools range from 0.04% to 1%. The current fee varies based on how close the price is from the internal oracle. You can check a pool's current fee which changes every trade at the bottom of a pool page.
As with any liquidity provided in blockchain, there are some smart contract risks involved. Torah crypto pools have been audited by PeckShield but audits never eliminate risks completely.
