Benefits of a Token Reactor

The traditional pool 2 liquidity mining incentives attract temporary capital with the goal of extracting short term value, without concern for the long term success of a project. Tokemak helps find the right kind of liquidity providers - those that plan on holding your DAOs token long term but may be risk-averse due to impermanent loss when providing liquidity in the traditional 50/50 manner. 
A 'tPool' can be thought of as merging pool 1 and pool 2 together. Rather than incentivizing a pool 1 on a Project or DAO's dApp, they can incentivize a tPool, where users single-stake their tokens in a Tokemak Token Reactor, then take their tABC tokens to the DAO's native dApp. There they stake the tABC tokens to begin earning native ABC tokens, while their underlying assets are being utilized as liquidity. Further, the DAO then begins to earn TOKE as the holders of the tABC tokens.  
Example flow of a DAO utilizing a tPool with a Token Reactor, replacing a traditional pool 2: 
By deploying a Token Reactor with a tPool, a DAO can gain the following advantages: 
Impermanent Loss Mitigation: Tokemak employs sophisticated deployment logic along with impermanent loss mitigation levers that ensure liquidity providers can withdraw the same quantity of assets they have deposited. This abstraction attracts liquidity providers whose interests are aligned with the long term success of the protocol. The mechanics of impermanent loss mitigation are discussed in depth in the Guard Rails and Impermanent Loss Mitigation section.
Generalized Liquidity: With Tokemak, liquidity is generalized meaning liquidity can be redirected across exchanges seamlessly. The game theory is designed so that if all participants are maximally greedy, the system will operate at peak efficiency. Therefore as long as liquidity directors are adjusting their voting position to maximize their rewards, liquidity will be automatically directed to where it is needed most. You can find more details on deployment logic here.
Cost Center to Revenue Generator: Rather than spend millions of dollars incentivizing mercenary liquidity providers, Token Reactors allow DAO’s to earn revenue on idle treasury funds that can be used to offset token emissions. Additionally, liquidity providers only need to provide a single asset, the base asset is sourced from Tokemak's pair reactors.
Direct Liquidity: Both Liquidity Providers and Liquidity Directors are rewarded in TOKE. This means DAOs are able to utilize the rewards they receive from holding tAssets to directly increase their ability to direct the assets held within Tokemak according to their interests.
Maximize Total Addressable Liquidity: Token Reactors allow DAOs to increase the total addressable liquidity of their token by an order of magnitude. Previously, the only tokens that were eligible for liquidity were the tokens held by users sophisticated enough to manage LP positions and willing to assume the risk of impermanent loss. With a Token Reactor, all token holders (including the DAO treasury) can become an LP with single-sided exposure.
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Diagram shows DAO’s ability to compound both TOKE rewards and power to direct Tokemak PCA

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