A decentralized market-making protocol called Tokemak aims to improve the capital efficiency of Liquidity Providers (LPs) throughout the DeFi ecosystem. Tokemak acts as a "liquidity router" on top of decentralized exchanges, regulating the flow of liquidity to offer more affordable and convenient liquidity sourcing. The components of Tokemak's system are called "Reactors" and "Liquidity Directors." Different protocols and DAOs can control where their liquidity goes thanks to the interplay between these, without depending on conventional incentives like high APY pools that may cause inflation. TOKE is an Ethereum network-compliant ERC-20 governance and collateral token. The use cases for Tokemak include DAO governance, providing as a collateral asset for LPs, staking to reactors to control liquidity deployment, and rewarding pools to preserve liquidity (adding new reactors, setting fees, etc).
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