Currently the Liquidity pool is created by providing pairs of PRV and pCoins. We use AMMs to regulate the price between the two. This means that the exchange rate fluctuates over time. Which is good, because prices change.
However what if I wanted to make a strict ratio of how a pair of coins are traded. This obviously wouldn’t be useful for coins that don’t have a direct relationship. But let’s say I wanted to back my newly created pToken with a specific amount of a particular pCoin. I know providing for cross pairs will be implemented soon (like BTC <=> ETH, etc…) But I want to create a cross pair that has a fixed rate. With a fixed rate, your coins would always be exchangeable for the same amount regardless of time.
Theoretically speaking, with this feature you would be able to make Incognito a custodian for wrapped ERC-20 Tokens. This would bring a lot of traffic because people would be able to have access to all the blockchains Incognito is connected to when coding with solidity smart contracts. They just have to use the correct ERC-20 Token that’s paired with what ever pCoin they want to use (pBTC, pXMR, pNEO, etc…)
Unless this is exactly what is being done with pEthereum Specifications, but i’m unsure.
I have all the wrapped ERC-20 Token contracts created and ready to be deployed, but I have no way of specifying the permanent exchange rate with the Incognito Liquidity Pools. Currently If I add liquidity, someone else can add liquidity at a different rate (changing the ratio)? Not to mention cross pairing isn’t even implemented yet
The plan is not to gain money on providing liquidity like this, providing capital would be just to host a service. The service would be to exchange 1 iBTC(ERC token) for 1 pBTC and vice versa on the Incognito network. If I could gain a small PRV transaction fee for hosting that service, it would be cool, but not expected. Though the capital provided would most likely be locked up indefinitely as everything would be backed 1:1, so it would be nice to gain a return.