Deposit FAQs
Last updated
Last updated
When you go to the deposit page and deposit one stable coin, it then gets split between each token in the pool. That’s something you have to keep in mind because if you were to deposit 1000 DAI in the Pool, a per the screenshot below, When remove liquidity you would then get 223.134 DAI, 268.433 USDC, 233.76 USDT and 247.025 BUSD. Those values change constantly as people trade and arb the price of stable coins.
Besides the deposit bonus explained below, it doesn’t matter. Your tokens will get split into the pool and it doesn’t affect your returns so you can deposit one, some or all the coins into the pool without worrying about it affecting your returns.
On the screenshot above, you can see DAI is quite low on the pool so if your plan was to join the Pool, you would ideally deposit DAI into it. As you can see on the screenshot, you would get an instant 0.0118% bonus for depositing DAI into the pool.
The main reason for this is that DAI is currently slightly more expensive so if you went to a centralised exchange you might sell it for $1.007 instead of $1. The deposit bonus reflects that.
The other reason behind this is thr 3 the pools are always trying to balance themselves and go back to equal parts (in this case 35% DAI) so depositing the coin with the lowest share will get you a deposit bonus and that also applies to BTC pools.
When you withdraw, the same principle applies (but reversed). If you withdraw the stable coin with the biggest share, you would get a bonus but you still choose what stable coin you want to withdraw.
Arbitrage is the simultaneous buying and selling of, in our case, a token to make a profit. Because cryptocurrency markets can often lack liquidity, there are often opportunities for traders to take advantage of price discrepancies to make a profit which can be helped by protocols like Torah.
Liquidity pools (particularly one without an opportunity cost) are a great way to help stable coins keep their pegs. It makes easy for traders to arb (see question above) when the price slips off the peg which is very important for all the companies and foundations developing stable coins as having a $0.98 stable coin is never a good look.
As a result, some pools on Torah are “incentivised”. That means that on top of trading fees , the companies will give rewards to people providing liquidity to the pools with their coins.
The protocol itself provides a DEX platform using the AMM mechanism, providing the exchange of different stablecoins, non-stablecoins and TRH.Users can provide liquidity to different exchange pools, from which users receive LP tokens that represent a proportional share of the assets in the pool, allowing the user to recover the funds at any time.
Having LP tokens can pledge mining, select a farm, add LP tokens to it, and pledge it, and users will receive a TRH reward.These rewards can be used for the veTRH.
If you would like to swap your 3TRH back into a stable coin, you can head to withdraw, select the stable you would like to receive (optional) and click "Withdraw". After confirming your transaction, you will then receive stable coin.
"If you would rather just stake your 3TRH and earn more TRH, you can head to the Minter
scroll down to 3Pool and click ""Deposit"" to stake them into the gauge."
Swap fees are 0.04% which is thought to be the most efficient when exchange stable coins on Ethereum.
