What is the difference between Liquid Pool and Trade Pool?

Polars.io
3 min readMay 21, 2021

Liquid Pool
This is a unique Polars pool. This pool contains the basic math of polar tokens. This is where the WHITE and BLACK prices change after each event ends. In Liquid Pool, prices for polar tokens are fixed, there is no slippage. Before and after the event, users can buy and sell polar tokens at a fixed price with no slippage. Possible deal size is only limited by the amount of liquidity added by liquidity providers.

But it is important to note that during the event, the Liquid Pool is closed and no transactions can be made in it.

An additional feature of the Liquid Pool is the absence of Impermanent Losses (IL) for liquidity providers. This is because liquidity providers add the BWT token (the aggregate price token of the polar WHITE and BLACK tokens) to the Liquid Pool, and the BWT price never decreases, therefore, the share of BWT in the Liquid Pool remains unchanged. This allows you to minimize risks to the very minimum.

Trade Pool
This pool is a fork of the Balancer pool. Users add 3 tokens to it in the current price proportion (WHITE, BLACK, USDC). The price of tokens is determined by the ratio of these tokens in the pool. If in the Liquid Pool the price of tokens depends on the results of external events and changes only after the end of the event, then in the Trade Pool the price is determined by market mechanisms.

It is important to note that, unlike the Liquid Pool, the Trade Pool is open all the time, and users can always make deals.

The weight of the tokens in the Trade Pool can change depending on market sentiment, so the liquidity provider can be affected by the Impermanent Loss in the same way as it happens on Uniswap or Balancer.

That is why we have increased the pharming speed for Trade Pool liquidity providers by 1.5X. Therefore, for providing a similar amount of liquidity, in the Trade Pool, the user will receive one and a half times more rewards for pharming than in the Liquid Pool, but the user will have to take additional risk (IL).

Summary
Liquid Pool

  • Add BWT (receive BWLT)
  • Fix price (WHITE and BLACK)
  • No slippage
  • No Impermanent Loss
  • No risk
  • Closed when Event live
  • Farm 1.0X

Trade Pool

  • Add WHITE, BLACK and USDC (receive PTPT)
  • Market price (WHITE and BLACK)
  • Slippage
  • Impermanent Loss
  • Open all the time
  • Farm 1.5X
  1. How do polar tokens work?
  2. What is Polars’ greatest competitive advantage?
  3. What business model does Polars have and how is commission distributed among users?
  4. How to make money by providing liquidity?
  5. What is the difference between Liquid Pool and Trade Pool?
  6. How to make money on farming?
  7. How to place bets and earn?
  8. How to make money on arbitration?
  9. What is the function of the POL governance token?
  10. How and when can I get / buy POL?
  11. Pre-sale for early adopters.
  12. List of future Polars features (Shortlist)
  13. What happens after listing on Uniswap? (Staking + Farming)
  14. How to get the maximum POL tokens within 6 months with minimal investment.
  15. How to win a trading competition and get a free POL allocation?

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