What is RadixPlanet pools?

RadixPlanet pools is a way to simulate a DEX Pre-Babylon to allow users to provide liquidity, earn liquidity mining rewards, and trade various Radix alt-tokens until Babylon finally arrives.

How does liquidity providing work?

Liquidity providing works like any normal AMM DEX where users send tokens to the liquidity pool with the same ratio of the tokens already in the pool and in return they get an amount of the so-called liquidity pool ownership token, this amount the user receives is equivalant to his ownership percentage of the tokens in the liquidity pool.
Due to the nature current Radix wallet is implemented where normal users cannot transfer multiple tokens in a single transaction, users are allowed to send their provided liquidity tokens in separate transactions, where those transactions are queued nad not reflected in the pool balances and swaps until all tokens are provided and only then all liquidity transactions from that same address are processed, ownership token amount minted, and their amounts gets actually added to the pool balances.
Please note that every pool on RadixPlanet contains exactly three tokens, and to provide liquidity you need to send amounts of all the three tokens with the same ratio that is visible on the "Add Liquidity" page, any excess amounts in any of the three tokens will be returned back to you when you send all the tokens
Please also note that the ownership token is minted directly to your address using a "Mint" transaction action, which currently both Radix transaction explorer as well as the official wallet does not show, so to check you actually received the token, you simply need to look at the tokens you have and you should find a token with name like PLPXRD___PLANET where "___" is the secondary token symbol of the pool you provided liquidity for

Is there a minimum in liquidity providing?

To prevent spamming and dust amounts of ownership tokens scattered around multiple wallets, there is a minimum of 100 XRD (plus the network fee depending on number of tokens in the pool) equivalent for every token in the pool applied to liquidity providing, if the amounts provided does not meet the minimum requirements they will be refunded after deducting the applied fee.

How does the user withdraw his liquidity?

The user simply needs to send the amount he has of the ownership token (or a portion of it) back to the pool address and this amount will be burnt and equivalent liquidity amounts will be sent back to the the same address who sent the ownership token.

Can I move the "ownership token" between my wallets or even sell it to someone else?

Yes, you are free to move the ownership tokens between different wallets and even trade it OTC, in the end, the possession of the ownership token is what proves you have a share in a specific liquidity pool and the amount you possess is what determines how much percentage you own of that specific liquidity pool.

How does swapping work?

Ignoring the fees, swaping just follow the well-established simple formula of x × y = k where x is the amount of token 1, y is the amount of token 2, and k is a constant which is kept constant before and after trade.

Are there any limits on transactions?

There's no limits on transactions, but one rule apply here, if there's no remaining amount in the transaction after deducting the fees, the transactionis collected entirely and is not processed nor refunded.

What happens if I sent a wrong token to the pool

To prevent spamming, the transaction will be ignored and not refunded, if the token has value to you and you want it back, please reach us on Telegram.

What is the role of $Planet? why each pool have it?

Planet token plays a significant role in liquidity pools, that is, it acts as a bridge between different pools, not only on RadixPlanet, but on other AMM platforms as well, as when a trade happens in any pool it opens up an arbitrage opportunity between this pool and all other pools that has $Planet in it, so incentivising users to take this opportunity and trade $Planet between those different pools, and this trading as well opens up another arbitrage opportunity, so basically the existence of $Planet in every pool causes every trade to open a chain of arbitrage opportunities and thus maximizing trade volume which in turn will make higher profits for liquidity providers and traders as well.

How liquidity mining rewards work?

There will be rewards in $Planet that will be distributed on both liquidity providers and traders through the pools at the same way it is currently being distributed based on the maker/taker schema, where maker (or liquidity provider in liquidity pools terms) usually gets double or more the rewards the taker (or trader in liquidity pools terms) gets.
The rewards will be distributed at the first of each month starting at 2022-09-01

How is the estimated APY calculated?

The estimated APY is calculated using the following steps:
  • Calculate users (liquidity providers) share of the collected swapping fees and excess collected network fees
  • Calculate actual users profit percentage since the creation of the pool
  • Divide actual profit percentage over the pool's age (no. of days)
  • Multiply by 365 (no. of days in a year)
Please note the following:
  • Estimated APY reflects actual profit since the pool creation and thus it can somewhat fluctuate with new trades especially for new pools
  • There're other factors that might greatly affect the actual APY, for example the estimated APY for small pools is usually too small compared to larger pools because the smaller the pool is, the fewer trades that it has, in fact you may get bigger returns adding liquidity to smaller pools than larger pools as some small pools may even have greater actual APY than other larger pools if their token is a good token and it gets more trades when the pool size increases
Please also note that we DO NOT take any of the following into consideration while calculating the estimated APY:
  • Impermanent loss
  • Changes in pool's tokens values
  • Liquidity mining rewards that will be distributed each month to liquidity providers

What are the applied fees?

There are two types of fees that are collected for processed transactions, the network fee which is deducted from the provided amount before actually processing the transaction, and a service fee, which is only collected for swap transactions, below is a summary of the incurring fees
Please note that collected network fees vary depending on number of tokens in the pool, below are some examples

Transaction Type # of tokens in the pool / Network Fee Service Fee
3 4 5
Initial Liquidity Providing (Creating a new pool) 60.3 XRD 60.4 XRD 60.5 XRD -
Adding Liquidity 0.3 XRD 0.4 XRD 0.5 XRD -
Withdrawing Liquidity 0.4 XRD 0.5 XRD 0.6 XRD -
Swap Transaction 0.2 XRD 1%
Refund Transaction 0.15 XRD -

Note: the 1% swap fee along with excess collected network fees are split to: 50% to liquidity providers and 50% to RadixPlanet.

Are the tokens we send to you secure?

We are following very strict security rules and continuously doing our best to keep your valuable tokens safe and a big portion of the tokens on the platform are owned by us and that implies that we do trust our security mesures to protect those tokens, We have also been trusted with users' tokens worth thousands of dollars on our regular CEX since our launch and we have kept our promises to keep those tokens safe without a single incedent of hack or exploit, however, as the cryptocurrency field itself is experimental and like any software in the world specially in the cryptocurrencies field, there is always a risk involved, so you should keep that in mind as well