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Architecture

At the core of the Degen Protocol is the pioneering bi-pool structure.

A bi-pool is a pair of liquidity pools. For example, an ETH/USDC bi-pool is a pair of an ETH pool and a USDC pool. Degen Protocol uses bi-pools in order to provide enough liquidity for every pair. It is not possible to mix existing pools for different pairs because of the potential vulnerability of undiscovered tokens.
To protect users from this, Degen Protocol uses secure bi-pool creation instead. Although bi-pools are all user-created, numerous steps to help ensure enhanced liquidity are in development. The Degen Protocol smart contract allows the creation of a new bi-pools for any desired UniSwap, ApeSwap, or other AMM pair. Bi-pool creators can set the following parameters as they see fit:
  • trading pair
  • 0-100% pool creator fee
  • 0-100% pool/lenders fee
  • 0-100% of daily interest for lenders
  • 0-1000x Leverage
  • % pool utilization

Please note, however, that every pool has fixed parameters:

BSC
  • 0.1% to team.
  • 0.05% to DGN stakers.
  • 0.05% to UMX stakers.
ETH
  • 0.1% to team.
  • 0.1% to UMX stakers.
Total trading fees can be up to 100%, of which 0.2% is fixed for the protocol.
There can be many pools with different settings for the same AMM pair, which allows traders to pick and choose between them as desired. After a bi-pool is created, lenders can add funds and earn interest right away. Lending is covered by LP tokens emission. Usage fees are returned to the pool and can be withdrawn during LP tokens return.