𝐃𝐨 𝐲𝐨𝐮 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐚 𝐃𝐲𝐧𝐚𝐦𝐢𝐜 𝐖𝐞𝐢𝐠𝐡𝐭 𝐎𝐫𝐚𝐜𝐥𝐞 𝐏𝐨𝐨𝐥 𝐢𝐬 ?

Let's find out in the book of truth !

𝐀𝐧 𝐎𝐫𝐚𝐜𝐥𝐞 𝐩𝐨𝐨𝐥, as you've rightly guessed, is a pool based on an Oracle pricing model for each asset within the pool. So, what sets it apart from what we already know?

At Elys, we've implemented a 𝐝𝐲𝐧𝐚𝐦𝐢𝐜 𝐟𝐞𝐞 𝐦𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦 that continuously rebalance the pool back to the target weight.

Additionally, the swap price on our AMM will vary based on the pool's needs.

Let's take an ATOM/USDC pool, for example : If rebalancing the pool requires a higher percentage of ATOM, fees will be low for converting ATOM to USDC and high for converting USDC to ATOM, and vice versa.

In the dynamic fees model, which is used to rebalance the weights back to the target weights the fees is determined by a formula :

Dynamic weight fees = 0.05%* ( W1/W2) ^ 2.5

This mechanism aims to keep asset weights within the pool close to target weights.

For example, let's assume that token A is ATOM and token B is USDC.

If the balance between A and B follows this trend in percentage represented in the pool: 50:50 55:45, 60:40, 65:35, 70:30, 75:25, 80:20, 85:15, 90:10, 95:05

To swap ATOM (Token A) to USDC (Token B)

When swapping USDC (Token B) for ATOM (Token A), you'll notice a reverse trend in swap fees.

When a swap or liquidity provider improves the weight and brings it closer to the target, both the swap fee and weight-breaking fee are reduced to 0, along with an added incentive bonus.

This incentive bonus is known as the "Weight Recovery Reward."

The rewards will be distributed from the bonus vault, which collects 10% of all swap fees and redistributes them for the weight recovery bonus incentive.

Thanks to the unique design of Oracle-based arbitrage-free pricing, these pools support low swap fees and zero price impact trades.

Oracle pool liquidity can be utilized for both spot swaps and perpetual trading.

Now, why 𝐖𝐞𝐢𝐠𝐡𝐭𝐞𝐝?

Because at Elys Network, it's possible to create pools with different coefficients, initially in a permissioned manner, and later in a permissionless manner.

This means you can participate initially and then create pools with coefficients other than the standard 50/50, such as 70/30 or 60/30/10, among other combinations!

Another concept we have is the "Molecule pool." In Molecule pools, you can combine 3 assets or more, up to 8 assets.

These pools can be either fixed-weight AMM pools or dynamic-weight oracle pools.

This model allows for:

• Always maintaining accurate asset prices

• Providing interesting arbitrage opportunities for traders

• Achieving very low swap fees with negligible price impact.