Welcome to Tokemak
The Utility for Sustainable DeFi Liquidity
Tokemak is a novel protocol designed to generate deep, sustainable liquidity for DeFi and future tokenized applications that will arise throughout the growth and evolution of web3.
It can be thought of as a decentralized market making platform and a liquidity router that disaggregates traditional liquidity provision and market making for DeFi. Sitting a "layer above" decentralized exchanges, Tokemak allows for control over where the liquidity flows, and also offers an easier, cheaper way for providing and sourcing liquidity.
The current state of DeFi is comprised of fragmented, unpredictable, and expensively sourced liquidity. Builders of new projects bear massive costs pursuing liquidity solutions through incentivized "pool 2's," which can dry up when the incentives are exhausted. Providing 50/50 paired liquidity is expensive for an individual, and has the looming risk of impermanent loss. Traditional market making solutions are opaque for native DeFi builders, highly centralized, and expensive. Finally, reliance upon whales to provide liquidity results in a perpetual state of uncertainty.
Insufficient liquidity results in poor pricing and volatility. This negatively impacts projects/DAOs seeking deep liquidity for their tokens, exchanges looking to offer the best possible pricing, and the individual, hoping to avoid slippage due to the price impact of their trade. Additionally, protocols interacting with other projects' tokens require reliable liquidity.
Web3, gaming, and the metaverse have an immense future ahead of them - and we believe that future is inextricably tied to DeFi and in particular, deep liquidity for the tokenization of applications. Tokemak plans to become the liquidity bandwidth for this tokenized future.
Navigating docs can be tedious and confusing at times. We have spent a lot of time to curate and design our docs in a way that makes it as easy as possible for both new and existing Pilots to navigate to find the information they are looking for. If you have any feedback, have trouble understanding something or simply cannot find what you are looking for, please don't hesitate to reach out on discord!
It is highly recommended to read through the Key Terminology section if you are unfamiliar with Tokemak.
Advanced Topics
Last modified 1mo ago