TOKE Contract Address: 0x2e9d63788249371f1dfc918a52f8d799f4a38c94
Tokemak's native protocol token, TOKE ("toe-kuh") can be thought of as a homogeneous form of tokenized liquidity. It is representative of the ability to direct any of the deposited LP assets in the form of liquidity to various exchange venues.
TOKE serves several purposes:
- It's primary use case is for it to be utilized by Liquidity Directors who stake $TOKE in order to receive votes that are used to direct liquidity and collateralize Token Reactors.
- It is the systems incentivization / reward token that is distributed to participants for performing various actions on the platform such as directing liquidity or providing assets.
- Protocol risk mitigation - It acts as a backstop for potential losses incurred during liquidity deployment. See the Asset Stack and Mitigation Waterfall.
- Liquidity Directors earn TOKE at a variable APR also dependent upon the balance of the Token Reactor.
- Liquidity Providers earn TOKE at a variable APR dependent upon the balance of the Token Reactor. LPs also earn TOKE by depositing assets in the Genesis Pools.
There are several use cases and actions that can be performed with the TOKE token.
Liquidity Directors (or LDs) are users that stake their TOKE and allocate votes to a specific Token Reactor, in order to direct the inventory of a specific asset as liquidity to a preferred exchange. LDs can acquire TOKE through providing liquidity in the form of rewards, or traded on the open market.
LDs also earn % APR rewards in the form of TOKE for directing liquidity. This APR is a variable rate which is dependent upon a number of factors, discussed more in depth in the Rewards Logic section.
TOKE votes for liquidity direction is queued to be deployed on the next Cycle. LD TOKE reward emissions don't begin until the beginning of the following Cycle.
Liquidity Providers (or LPs) are participants that deposit (single asset stake) assets into a specific Token Reactor, in order to contribute to the inventory that will then be paired and deployed as liquidity.
LPs earn % APR rewards in the form of TOKE. This APR is a variable rate which is dependent upon a number of factors, discussed more in depth in the Rewards Logic section.
LPs assets are then queued to be deployed on the next Cycle. LP TOKE reward emissions don't begin until the beginning of the following Cycle.
The locking of TOKE as accTOKE gives users the ability to participate in the weekly accTOKE Cycle rewards. Rewards accrued by the Tokemak POA deployments are claimable in wETH by accTOKE lockers.