A DEX utilizing multiple unique pool concepts, optimal trade pool distribution, with optional impermanent loss insurance.
LEAN theorem is used as a mathematical proof assistant to verify the equations on which MIRQUR is based. These proofs and the code behind MIRQUR will be made public prior to launch, if not sooner.
Portfolio pools allow a liquidity provider, LP, to create a pool with any number of different tokens and set the ratio of those tokens how they see fit.
Range pools have the functionality of allowing LPs to limit the price range in which the pool is used to facilitate trades. This allows LPs to set limits on their impermanent loss and increase their capital efficiency. When the price moves out of the designated range the LPs collect no fees because there is no trading in and out of the pool.
In diode pools trades are only allowed in one direction i.e. swapping token a for token b, but not token b for token a.
This allows the LP to leisurely accumulate one asset, while disposing of another and collecting fees along the way.
Optimal Trade Distribution
The result of the above, highly customizable pools is the fragmentation of the available liquidity into a wide range of pools.
To mitigate this a mathematical method has been developed to manage the optimal distribution of trades over all the available pools for the tokens being traded. This optimizer can also optimize between DEXs.
Impermanent Loss Insurance
There will be a dedicated and isolated fund to provide impermanent loss insurance to those that opt for it. In order to opt in to impermanent loss insurance an LP chooses a percentage of their fees to contribute to the fund. There will be separate insurance pools for each token and a LP’s maximum insurance value is limited in proportion to their contributions to the fund. This fund will initially be funded from the proceeds of the MRQR stake pool; operated by the DEX’s founder.
MIRQUR will release a governance token that holders can stake to vote on proposals to improve or change the operational parameters and functionality of the platform. Proposal submission requires holding a low amount of governance tokens, and submissions are limited to prevent proposal spamming. If a proposal is rejected the tokens used to propose it are subject to a cool down period where they can not be used to submit another proposal. Each token’s voting power is to be weighted, its voting power decreasing for longer holding times and increasing when the holder commits to voting before proposals have been released.
Finally, Cross-chain trading i.e. wrapped tokens, will be built into the protocol in the future.