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.