Initial Matching and Public Testnet Announcement

On May 31st, the brand new naughty price protection will live with the Initial Matching(IM) mechanism! The initial price is hard to determine in the traditional AMM pool, but on degis, we will solve this problem by adopting the initial matching mechanism.

What is the Initial Matching(IM)?

Deposit Period

Under the IM mechanism, there will be an additional 1-day period before trading called the deposit period. During this period, liquidity providers can freely deposit or withdraw stable coins into the pool by setting the expected price for the protection token. By adopting this mechanism, the initial price of the AMM trading pool is 100% determined by liquidity providers. The finial ratio will be set according to the deposit proportion in both side of the pool when deposit period ends.

After the deposit period, the pool will be settled at the final price. Then, all the stable coins on the protection side will be used to create protection tokens, which will be used to initially set the AMM pool with the left stable coins.

Early Bird DEG Rewards

During the deposit period, early liquidity providers can get $DEG tokens from the one who joins later. The $DEG amount to be paid to the early LPs is 1% of the total amount of stable coins to deposit. The paid $DEG will be shared by the earlier liquidity providers according to their proportions in the pool. The earlier users provide liquidity, the more rewards they will receive.

1.2x Mining Rate

As the initial liquidity providers , they will receive initial LP tokens according to their deposit amount after the deposit period. These tokens can be used to mine in the initial LP mining pool, where will have a 1.2x higher mining rate than the normal mining pool.

But remind that, once you withdraw the liquidity from the initial LP pool, your initial LP token will be burned. Even if you rejoin later, you can only mine in the normal LP pool.

Why Initial Matching?

More tokens will be added to the degis naughty price protection very soon, the Initial Matching will also used to determine the mining rewards for each pool. At the same time, IM is the mechanism that we specially designed to reward the most loyal liquidity providers of the protocol.

IM Public Testnet

Starting from May 17th, Degis will host a public testnet on Avalanche Fuji Testnet for the initial matching. More details and the rewards plan will be announced next week! Stay tuned!




The 1st DeFi insurance protocol on Avalanche

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Saudi Crown Prince Hacked Jeff Bezos’s Phone, Analysis Suggests

{UPDATE} Jogo de Sobrevivente War Hack Free Resources Generator

SOC Threat Coverage Analysis — Why/How?


Enreach Governance and Community Contributors

So what makes Yield Optimizer a step ahead of PrivacySwap’s traditional farming?

GDPR principles: Data minimisation as an increased measure of hotel data security

CryptoArt. Ai ($CART) weekly 35| January 17- January 23

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Project Degis

Project Degis

The 1st DeFi insurance protocol on Avalanche

More from Medium

7,200,000 OLE Rewards to Trade More on the BNB Chain

Dexalot Discovery Testnet Battle — Dragon Crypto Gaming

About EdgeSwap’s Public Beta and Edge Network!

Sypool Mainnet Beta is Here! 🎉 🎉 🎉