In the 3rd part of the Moret Intro series, we are going to introduce the easy but versatile management of liquidity pools. In Moret, liquidity pools play the role of making markets for options and volatility tokens. The unique features of Moret liquidity pools are
- Anyone can create new liquidity pool or invest in existing ones
- One liquidity pool has one designated address from which a hedging programme can run. This hedging programme will direct trades between the liquidity pool and 1Inch Aggregation protocol, in order to hedge out the market risks of the outstanding option book
A new pool can be created with the following information entered at the bottom of the Liquidity app of Moret.
Pool name, symbol and description are static information viewable by everyone. Hedging Address is the designated address from which a bot can run, such as the following:
let parameters = { ‘fromTokenAddress’: sell_address, ‘toTokenAddress’: buy_address, ‘amount’: Number(amount), ‘fromAddress’: market_address, ‘slippage’: slippage, ‘disableEstimate’: ‘true’ };var url = new URL(‘https://api.1inch.exchange/v4.0/137/swap');Object.keys(parameters).forEach(key => url.searchParams.append(key, parameters[key]))let response = await fetch(url);let json_response = await response.json();let call_data = web3.utils.hexToBytes(json_response[‘tx’][‘data’]);await market.methods.trade(sell_address, max_amount, oneinch_router, call_data, default_gas).send();
Existing pools are listed in the same Liquidity app and can be invested or divested easily.
Over time, the liquidity pools with better hedging algorithms will win out with significantly higher APY, hence attracting more liquidity and are expected to become dominant pools.
Here is the simple and easy guide on how to create liquidity pools and invest in existing pools on Moret. Please contact us on Telegram (@moret_options), twitter (@moret_io) and Discord (@moret) to find out more.
