Product Preview: Index Pools

Flexible Multi-Token Liquidity

Chris Colman

Published in

CaviarNine

3 min readAug 17, 2023

Introducing the CaviarNine Index Pools

Venturing beyond traditional liquidity pools, the CaviarNine team proudly introduces Index Pools — flexible Multi-Token Pools tailored to the user’s preference.

Earn in a world where adding XRD and token liquidity and creating custom pools is only limited by your imagination.

Index Pool liquidity is only one facet of CaviarNine’s broader liquidity provision product and is seamlessly accessed by the Aggregator.

Unique Features

Let’s dive in to the Index Pools user experience:

Diverse Multi-Token Pools: Seamless access to a wide choice of token pools each with different constituents, weights and risk profiles. Being multi-token pools, the risk and rewards are spread across all the tokens (by their weights) giving a more diverse exposure.
Bespoke Liquidity Choices: Find a pool you resonate with or simply create one yourself. Simply select the member tokens and weights. Pools can have between 2 (like a traditional pair) and 9 different tokens.
Secure XRD Liquidity: With an Index Pool, adding liquidity has never been safer or more transparent. Participate in pools that align with your risk appetite and future outlook.
Dynamic Fees: During turbulent market conditions, liquidity providers earn higher fees, acting as a cushion against impermanent loss.
Flexible Liquidity Management: Index Pools are designed with the user in mind, offering intuitive methods for both newcomers and seasoned liquidity providers.

Index Pools are designed to give flexibility and choice to liquidity providers and are connected to the Aggregator for seamless execution.

More feature details will be forthcoming as we approach Babylon release.

Fees and the FLOOP Treasury

Index Pools combine a small fixed fee component and a dynamic liquidity fee (as mentioned above).

Liquidity providers (LPs) will share the proceeds of the liquidity fee.

Echoing FLOOP Tokenomics part 1, the fixed fees will be sent to the FLOOP Treasury controlled by the FLOOP DAO. As discussed in that article, these fees could potentially be converted into FLOOP and burned or utilised for long-term liquidity rewards.

FLOOP Ecosystem Products

Index Pools are but one means (of many) of providing liquidity in the FLOOP ecosystem which is fully accessible from the Aggregator.

CaviarNine is launching a wide range of DeFi products at Babylon with multiple ways for liquidity providers and price makers to interact. More details will come very soon as we approach release date.

To get involved, connect with us:

Stay tuned for more updates and thank you for your continued support. Together, we’re building a better DeFi future!