February 15, 2022, 2:50PM EST
• 6 min read

Tokemak: liquidity rental-as-a-service

Quick Take

  • Tokemak deploys protocol-controlled assets into providing liquidity on outside trading venues. TOKE stakers direct the liquidity and backstop the protocol in case of extreme protocol losses.
  • Liquidity providers lend assets to Tokemak in exchange for inflationary TOKE rewards. They are made whole by protocol reserve and TOKE stakers in case of extreme protocol losses.
  • It is unclear how Tokemak would combat impermanent loss incurred from providing passive liquidity.

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