Safety measures
Immutable liquidity
As mentioned in Protocol Owned Liquidity, the protocol ensures that liquidity is immutable. To prevent rug-pulls, all liquidity is owned by a dedicated smart contract that has built-in constraints against removal of the liquidity.
Liquidity allocation
Some of our strategies are riskier than others. And we, as a platform, donβt want to back ABRA using much of this risky liquidity. And we have an instrument that helps us in balancing risks if too much liquidity will flow into the pools with risky assets.
One of the main reasons that Uniswap V3 pools were chosen is the ability to have very narrow liquidity ranges. So if there is a concern that some strategy is much riskier than others we can reallocate its liquidity to more conservative strategies.
By reallocating we mean redeeming the liquidity of the riskier strategy and forming tokens of a safer strategy (preferably of the same type) which are then put as liquidity into corresponding V3 pool.
Last updated