Rated Pools: pools designed for yield-bearing tokens

Rated Pools: pools designed for yield-bearing tokens

stNEAR and LiNEAR tokens have already been traded for tens of millions in USD value on Ref Finance. Rated pools have been designed to fuel the growth of yield-bearing tokens, taking them to the hundreds of millions trading volume zone, taking advantage of:

  • Lower price impact thanks to Stableswap-like invariant
  • Higher liquidity with reduced impermanent loss risk

In a nutshell, traders will save 80%+ per swap using the rated pools (pool fee decreasing from 0.3% to 0.05%), in addition to a better rate!

Behind the scenes

One of the key designs of the solution, is the ability to synchronise the rated pools with the yield-bearing tokens’ prices, which change every epoch. The solution combines both, on-chain and off-chain method.

There are several “watchdogs”, running on different locations, that keep an eye on each yield-bearing token price, fetching the price direcly from the associated contract. If any price change is detected, the “watchdogs” would call a sync interface of the Ref contract to notify and trigger an on-chain cross-contract price fetch/update.

In addition to this built-in dynamic price, the solution has a fail-safe feature. If the yield-bearing token price fails to update over a specific period of time, any changes that would involve the yield-bearing token price would be halted (i.e swap and add liquidity), thus mitigating the risk of unfair arbitrages of the rated pools.