Liquidity Providers
Since Behodler pools are created through Scarcity (SCX) (and not ETH), and SCX is an index of the value of all tokens on the DEX, and SCX is minted on a token bonding curve, there is no linear progression of tokens & ETH up and down a price curve. This means that impermanent loss is significantly reduced (not completely eliminated however — this would be impossible).
What we describe technically is that the impact of impermanent loss diminishes drastically and rapidly as more tokens are added. When an exchange happens on a pair on multi-token pools, both underlying tokens change in composition. With Behodler, a swap does change the relative composition of 2 tokens but the remaining tokens are unaffected. The relative immediate impact of a swap is therefore more substantially muted in Behodler.
To provide liquidity on Behodler, one simply swaps the desired token to SCX.
Note: the UI button will change from "Swap" to "Add Liquidity"
To remove liquidity from Behodler, one simply swaps an amount of SCX to the desired output token.
Note: the UI button will change from "Swap" to "Withdraw Liquidity"
Last modified 1yr ago