Pool v.2 aka Provide

I’ll definitely be on that one i have some questions!

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I think it’s X*Y=Constant.

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I like this idea for 2 reasons:

  1. v2 means there will be much more PRV in liquidity pools, hence we could have smaller slippage.
  2. It allow users to provide ONLY ONE crypto, which is friendly for those who is willing to take risk exposure of only one crypto.
    For each of this I have a question respectively:
    For 1:When PRV from Saking Pool goes into pool v2, the price of PRV would suddenly go down since amount of PRV goes up, hence PRV holders may have a loss.
    For 2: I’m very curious of the mechanism behind one-crypto liquidity supplying.
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when is it going live? When is the node pool being shut down? Why would it be as well? Don’t we need that for the nodes to run transactions? I’m confused. Also will we have to shift funds to the new pool? I’m not a fan of weekly payments when I see my numbers growing automatically in the pool. How about daily calculations kind of like how kucoin does? That would inspire more people to provide liquidity. Also there HAS TO be a better reason than just helping the dex grow. I mean whats in it for me the investor? What reason would I have to promote the project to other investors and traders?

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Is your conclusion about 1 accurate? If so, it’s kind of scary. Right now there is about 700K PRV to 500k USDC and 1 PRV = .7 USDC. I am imagining a massive devaluing of PRV if say even 1 million PRV that are staked fall into the USDC liquidity pool where there is only 500k USDC. Then what? Would we have 1,700K PRV to 500k USDC, where a PRV is worth .25 USDC?

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Hi guys, let me jump in. Looks like some members were confused in terms of how the liquidity is going to work.

@jindouyunz @17Strife @Joshua_Dukes let me clarify several things.

  1. Firstly, I want to highlight that the pDEX core functionality remains. The pDEX based on AMM. Dive in details here pDEX: The first privacy-protecting decentralized exchange

  2. Still possible to use Provide tool and set up liquidity to any pair available on pDEX and list new Tokens with Free listing on the Incognito exchange for ERC20 and BEP2

  3. Pool V2 - it’s a new seamless way to provide liquidity to pDEX. Basically it will match PRV with pTokens and provide a pair to the liquidity pools.


This assumption is not correct. Even if you provide one coin to the Pool V2 it will be matched with other coin and in the pDEX will be added the whole pair as before.

So basically if in the Pool V2 is 500k PRV and we want to move it to the liquidity pool it must be matched with the equivalent of other coins (BTC, XMR, etc.).

Basically it’s like matching functionality. If we have PRV, BTC, XMR pools, it will be matched accordingly and set liquidity according to the appropriate pair.

  1. Plan to launch Pool V2 this month,
  2. It will not be shut down. The Pool remains and will be upgraded to accept other coins. From the back end, there will be just one more option to use PRV - provide liquidity.
  3. The network need nodes to process transactions
  4. If your PRV is already in the pool, you will not need to move it.
  5. The dashboard of Pool V2 will be similar to Pool, you can see funds in real-time and can withdraw any time (not like LP program)

@Joshua_Dukes we should attract people who care about privacy and interested to participate in the movement.

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Yea thats cool and all but people like to make money too @andrey

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Don’t see anything bad in making money, there is hundreds ways to make money in crypto, I assume if people choose Incognito - they care privacy first :slight_smile:

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Thanks Andrey, you are always so responsive.
Do you mean that, if I want to provide liquidity with only PRV, say $10000 PRV in total. Half of my PRV will aumotatically swaped into another token in the pairs? Like Balancer does?

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The price of PRV can only be influenced by: ① the amount of PRV in the pool currently, say X; ② the amount of trading pairs token in the pool currently, say Y for ETH-PRV pool; ③ the amount of PRV or ETH you want to swap, say x or y. Alaways: (X+x)(Y-y)=Constant=XY. And the price of PRV would be y/x. That’s how AMM works.
So, following my scenario, the price of PRV would go down because ① suddenly increases. But it’s only my scenario. According to Andrey’s reply, thankfully the team will go with another scenario, where ① and ② increases equally, so the price of PRV won’t be affected. That’s great.

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Nope. If you provide $10k PRV, we will find $10K in other available in the Pool coin and match it.

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That’s really GREAT! Looking forward for v2!

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Pool v.2 is almost ready! In your app, the little green icon currently named ‘Stake’ will be renamed ‘Provide’, as funds will no longer be used to stake Nodes, but rather, to provide fuel for the DEX.

Screen Shot 2020-07-06 at 5.01.59 PM

New tabs, new experiences

Coming 9 July 2020,

Through the new Provide tab, you’ll earn interest for providing PRV, BTC, XMR and DAI, USDT and USDC – with more currencies to follow in the subsequent weeks. You will no longer need to provide both sides of the pair. If you previously had funds in the Node Pool, it will be migrated for you.

What happens to the old Provide feature? Renamed ‘Add’, the functionality remains – users will be able to contribute dual-sided liquidity and add pairs, but the rewards program on that tab will conclude to make way for this new product.

What rates will liquidity providers get?

We’ll start with these currencies.

PRV: 37%
BTC: 9%
XMR: 9%
DAI: 8%
USDT: 7%
USDC: 7%

These rates may be subject to change in the future, and new currencies will be added over time.

What do I need to do?

If you have funds in Node Pool (Stake), they’ll be moved over for you. Please note that while the migration occurs, deposits and withdrawals will be temporarily paused from July 7th, 00:00 ET, and will resume on July 9th, 06:00 ET. You’ll continue to earn interest in that time.

If you have funds deposited through the Add tab (old Provide tab), you are of course free to continue supporting the DEX in that way. However, do note that funds here will not be interest earning, effective July 13th, after the last rewards payout. If you wish to earn interest on BTC, PRV, XMR, DAI, USDT or USDC, you’ll need to withdraw your funds and deposit them into the new pool when it is live. For other currencies, stay tuned!

The new Provide experience will launch on July 9th, 2020. As always, feel free to post any questions or comments here in this thread.

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Hi @andrey

To be honest I have read about pool v2 more than 15 times, but I still don’t understand the concept of pool v2.

There are two questions

First, single liquidity

AMM concept - example of pair X and Y

If the number of X increases, the value of X decreases, the number of Y decreases and the value of Y will increase and vice versa.

Pool PRV, BTC, XMR, DAI

For example the current PRV / DAI pair, is 1000,000 PRV / 1000,000 DAI = Rate 1 DAI / 1 PRV

How the new concept works, if suddenly 100,000 PRV is added to the pool. Then pDEX 1,100,000 PRV / 1,000,000 DAI, the rate will be 0.9 DAI / 1 PRV.

The PRV value will decrease by 0.1 DAI

Second,

Since there is no reward for the liquidity of the other partners. Then it’s possible that the liquidity provider will withdraw the current pair on pDEX and store all of its PRVs in pool V2.

Thus, the number of PRVs will increase with btc, xmr and DAI.

So if the AMM concept, the price of PRV will automatically fall against btc, xmr, dai.

Because it is likely there will be more PRV in pool V2 compared to btc, xmr, dai

How the system works, please explain.

Does the system always adjust automatically the amount of PRV added and subtracted so that there is no sudden change in price due to an increase in the amount of coin in pool v2?

Once again I try to read it …

Please correct if wrong

pDEX system is still the same as AMM
pDEX Liquidity Reward will no longer be replaced by the V.2 reward pool. Currently only BTC, PRV, XMR, DAI deposits get rewards

Coin in pool V.2 to support pDEX Liquidity. This means that only for those four pairs, the placement of funds in pool v.2 (BTC, PRV, XMR, DAI) to pDex is adjusted by the system according to the AMM system.

That is, the coin depositor in pool v.2 is not staking but will be used for pDEX.

The question …

This means that the project team will guarantee the return of coins placed in the pool v.2.

Thus, the project team must always have BTC, PRV, XMR and DAI coin reserves. To cover the coin if it is withdrawn by the depositor.

Or you will withdraw from pDEX if you don’t have enough coin reserves.

If so, then if there is a large number of withdrawals. then automatically the coin value will experience a sudden change.

It seem such as bank reserve… :grin:

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Hi @Trader3 , my understanding is that whenever (unpaired) PRV is added to this new pool, it will be paired with another Coin by Incognito. So, if $1,000,000 worth of PRV is added, then they will pair that PRV with $1,000,000 of another Coin. @andrey, I understand that the Team has reserves of PRV, but do you have reserves of BTC, XMR, etc. to match PRV? I’m just saying, if someone stakes $10,000,000 in PRV, then how does the Team match that in other Coins, assuming you do not have $10,000,000 in other Coins.

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They will provide the liquidity for the non-PRV side with pTokens, a cross-chain DeFi platform: AMA with pTokens - Privacy for Kyber, DeFi, and pTokens

If this is true, congrats to the team.

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i thing i got the point a secret…

mostly usdc & usdt in liquidity right now is provided by project team.
pool v.2 is to add more liquidity for BTC,XMR and DAI atm.

Project team have enough PRV reserve and usdc or usdt.

If any over PRV within pool v.2 . Those PRV will be paired with usdc or usdt.

or project team will have another altcoin reserve to pair with PRV…

I guess like that…

So, it will not any suddent impact into PRV price…

I guess they will back up by constant capital

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Ow, i got it. pptoken…!

thats clear…, thanks @abduraman

But, unfortunately staking pool no more exist. Replaced by pool V.2

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Isn’t Pool v2 a combination of staking and liquidity?

The PRV provided will be used to stake pNodes that are sold, but will also be used as needed to provide pairing for other coins (BTC, XMR, DAI) as needed, when they are added. So someone who is providing just PRV, will get their 37%, and it allows core team to use the PRV where it is most needed (either staking pNodes or providing for opposite side of pair for BTC/XMR/DAI).

This approach allows for the AMA to work, because all BTC/XMR/DAI provided will be matched to PRV from pool (which assumes they have much more PRV than needed for pNodes, which is probably valid assumption). But PRV not matched to pair just stays in staking pool… so it gives most flexibility to core team to meet both goals needed for growth… nodes and liquidity.

My only real concern at this point is that USDC/T are not included in the list, and I am not sure if this new program will adversely effect the liquidity of those pools as people will no longer be earning interest on that pair. So if they pull out their liquidity stake to put into pool v2, what incentive would they have to lock up USDC/T, but instead just put PRV into system and place their stablecoins into some other investment.

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Fine! You are ahead of schedule, I was waiting for them later.

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