The first release of Rubicon Pools is about to expire. All seven liquidity pools have entered withdrawal-only mode and tokens are no longer used on the order books. The deposit button has been removed and users are encouraged to withdraw their funds below app.rubicon.finance/pools:
The good news is that getting rid of these liquidity pools is one of the first steps in our transition to Rubicon V2! Stay tuned to our media channels for more news on the next release of Rubicon in the coming days and weeks 👀
background
Rubicon Pools was a novel liquidity mechanism launched on Optimism in September 2021. Passive liquidity providers (LPs) could deposit tokens into individual asset pools, where active liquidity managers (strategists) used the tokens to provide liquidity through market marking in the Rubicon order books. Proceeds from market making were passed on to the LPs, while strategists earned a performance fee.
Pools V1 helped solve Rubicon’s cold start problem by booting liquidity into the order books while giving thousands of users access to market-making returns. The liquidity pools peaked at more than $15 million in Total Value Locked (TVL) last month and are responsible for providing liquidity or “making” more than $30 million in trading volume.
While Pools V1 was live, one thing became clear to both our community and our team: passive liquidity is a myth. Passive players in an active market expose themselves to many toxic currents and generate negative returns. In a way, lending is the only true form of “passive” liquidity.
While Pools V1’s intentions were noble: democratize liquidity delivery through a system with clear roles and balanced incentives for passive providers and active managers; The implementation left a lot to be desired as users faced directional risks, compromised trust within the strategic setup, and some liveness issues.
Last year our team set out to redesign the relationship between the Rubicon order book protocol and liquidity pools. This new system had to be capital efficient, trustworthy and secure…
I’m looking forward to
In the past few months we have been working flat out to develop the next generation of the Rubicon protocol. Rubicon V2 combines two powerful DeFi primitives to form an efficient and secure foundation for Rubicon to become the world’s order book. We look forward to sharing more soon, keep an eye out on our social platforms!
Resources:
The die is cast.
(This post is for educational purposes only. Nothing herein should be construed as financial advice. Do your own research before making any investments.)
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.