Liquidity Pools

Users can deposit any amount of tokens into the Centaur Swap pools at any time. At launch, the supported tokens are:

  • ETH

  • USDT

  • DAI

These deposits will increase the liquidity of the pool and reduce slippage faced by traders. When tokens are deposited, LP tokens are distributed for the pool:

  • CS-ETH

  • CS-USDT

  • CS-DAI

These LP tokens represent a share of the pool, which includes the deposits and any trading fees accrued over time.

Transaction fees paid by traders is currently set at 0.2% of the tokens that they would receive and 100% of the transaction fee will be rewarded to the liquidity providers according to their share of the specific pool. The transaction fees would be adjustable in future based on DAO voting structures.

Impermanent Loss Mitigation

Due to the oracle pricing mechanism and the single asset pools, liquidity providers do not face impermanent loss. In most instances, we expect there to be some degree of profit from the trading fees and settlement profits.