GENESYS BLOCKCHAIN
  • ⛓️GENESYS BLOCKCHAIN (GCHAIN)
    • ⛓️GCHAIN
    • ✅What is GCHAIN?
    • ✅Proof of Authority
    • ✅Validators
    • ✅(GSYS)
    • ✅How to add Gchain to your wallet
    • 📚Glossary
    • ⚠️Terms & Conditions
  • 🐘GENESYS WALLET (GWALLET)
    • 🐘How to create your Gwallet
  • GENESYS VIEWAPP
    • 📊GVA General Aspects
      • 📈Why GVA?
        • 📊GenesysView App
        • 📈GVA products & Services
        • 📈GVA Features
        • 📈GVA Launchpad
          • Connect Wallet
          • Change Network
          • Let's Connect
          • Coin Crafter
            • Mint Coin
            • My Token Collection
          • Genesys Platform
            • Launch Pre-sale
            • Pre-sale Directory
          • Reward Lock
            • Set up Pool
            • Pool Ledger
          • Prize Draw
            • Launch Simple Lottery
            • Lottery Roster
          • Secure Vault
            • Establish Secure Lock
            • Token Secure Storage
            • Liquidity Vaults
          • Utility Kit
            • Multisender
            • Wrapped Converter
            • D-vote
            • Soon!
            • Market Maker
          • Collaboration Hub
        • 👨‍💻GVA P2P exchange
        • 🔐GVA Privacy & Security
  • BLUELOTUSDAO
    • Introduction
      • Best returns/yield for Liquidity Providers (LPs)
      • Best Rates for Traders
    • BlueLotusDAO Products
      • 🔁Exchange
        • Token Swap
        • Time to Trade
        • LPs (Liquidity Pools)
        • How to Add/Remove Liquidity V2
        • How to Add/Remove Liquidity V3
      • 🚜Farming
        • How to Use Farms
      • 🪙Pools
        • How to Stake in Pools
      • BlueLotusDAO Protocol
        • How BlueLotusDAO works
        • Programmable Pricing Curve
        • Dynamic Fee
        • BlueLotusDAO Ecosystem
        • Adding Liquidity in BlueLotusDAO
        • Protocol Fee
        • BLDT TOKENOMICS
          • BLDT Description
          • Deflationary Mechanisms
  • BLUELOTUSDAO GOVERNANCE
    • Introduction
    • Native Token
    • Governance
      • 📝Summary
      • 📚Categories
      • 🤝Voting
        • Voting Authority
      • ⚙️Governance Process
        • Governance Stages
          • Temperature Check
          • Consensus Check
          • Governance Proposal
      • 🔗Security
      • 🌎Blue Lotus Foundation
  • BLUE20-BRIDGE
    • Blue20-Bridge Intro
    • Blue20-Bridge
    • How to use Blue20-Bridge
Powered by GitBook
On this page
  1. BLUELOTUSDAO
  2. BlueLotusDAO Products
  3. BlueLotusDAO Protocol

How BlueLotusDAO works

PreviousBlueLotusDAO ProtocolNextProgrammable Pricing Curve

Last updated 1 year ago

BlueLotusDAO is an on-chain automated liquidity protocol that uses Programmable Pricing Curves to try to improve capital efficiency from the constant product formula pioneered by Uniswap. Similar to Uniswap, it removes the need for trusted intermediaries, and prioritizes decentralization and security.

BlueLotusDAO's core improvements are its flexible fee adjustment and programmable pricing curve setups. The flexible fee approach helps reduce the impact of impermanent loss, while different pricing curve setups tailored particularly to the token pairs in the pool allow better capital efficiency.

Anyone can create a pool or become a liquidity provider (LP) by depositing an equivalent amount of each underlying token in exchange for LP tokens. These tokens represent pro-rata LP shares of total reserves and can be redeemed at any moment for the underlying assets.

For each token pair, there are possibly many multiple pools with different configurations for the pricing curve. Pools are ready to accept one token for the other as long as BlueLotusDAO's formula is preserved. For more information on the programmable pricing curve formula, see .

BlueLotusDAO applies a dynamic fee to trades, which is added to reserves. This functions as a payout to LPs, which is realized when they burn their LP tokens to withdraw their portion of total reserves. For more information on dynamic fees, see .

Programmable Pricing Curve
Dynamic Fee
Page cover image