Vader Protocol
  • Welcome!
  • Vader Protocol
    • What is Vader Protocol?
      • Key Features
      • Ecosystem
      • VADER: All-in-One DeFi Protocol
    • References
      • What is an Automated Market Maker (AMM)
      • What is TerraUSD (UST) Stablecoin
      • What is THORChain’s Continuous Liquidity Pools (“CLP”)
      • What is Olympus Pro Bonds
    • VADER Tokenomics
    • Launch Phases
    • Roadmap
    • Vader Protocol Audits
  • Whitepaper
    • Abstract
      • Introduction
      • Key Features
      • Architecture
      • VADER Contract
      • VADER Token
      • Liquidity Incentives
      • Impermanent Loss Protection
      • Liquidity Pools
      • Synthetic Assets
      • Governance
      • Conclusion
  • Design
    • Vader Assets
    • Color System
  • Languages
    • Chinese
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What is THORChain’s Continuous Liquidity Pools (“CLP”)

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Last updated 3 years ago

THORChain uses the CLP derived from the X*Y=K formula of Uniswap but with one key difference—liquidity-dependent slip-based fees.

The CLP is arguably one of the most important features of THORChain, as traders will compete for trade opportunities and pay maximally to liquidity providers (thinner pools offer higher fees for LPs).

Impermanent Loss Protection (“ILP”) ensures LPs always either make a profit, or leave at break-even after a minimum period of time (set at 100 days), and partially covered before that point.

The liquidity-dependent fees and ILP offered by Vader Protocol make it the best AMM for LPs, thereby driving demand for its anchor asset, USDV.

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