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Issue-#1060: Remove content on pools

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Akshay 2022-07-19 10:26:09 +02:00
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core-concepts/asset-pricing.md
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@ -21,50 +21,6 @@ The image below shows how to set the fixed pricing of an asset in the Ocean's Ma
![fixed-asset-pricing](../.gitbook/assets/fixed-asset-pricing.png) ![fixed-asset-pricing](../.gitbook/assets/fixed-asset-pricing.png)
### Dynamic pricing
With the dynamic pricing model, the market defines the price with a mechanism derived from Decentralized Finance (DeFi): liquidity pools. While the publisher sets a base price for the token in OCEAN, the market will organically discover the right price for the data. This can be extremely handy when the value of the data is not known.
The Ocean Market helps create an Automated Market Maker(AMM) pool of Datatoken and Ocean tokens in dynamic pricing for each asset. _AMM_ enables unstoppable, decentralized trading of assets in the liquidity pool.
AMM uses a constant product formula to price tokens, which states: **x \* y = k** where **x** and **y** represents the quantity of the two different tokens in the pool and **k** is a constant.
A _liquidity pool_ is a reserve of tokens locked in the smart contract for market making. A buyer or a seller of an asset exchanges token **x** for token **y** or vice versa. AMM calculates the exchange ratio between the tokens based on the mathematical formula above.
Ocean Protocol facilitates the creation of Datatoken/OCEAN liquidity pool with [Balancer smart contracts](https://github.com/oceanprotocol/contracts/tree/v4main/contracts/pools/balancer). The publisher needs to only approve a blockchain transaction that creates an AMM while publishing the asset. Thus, Ocean Market hides the complexities of deploying an AMM pool.
While publishing an asset with dynamic pricing, the publisher decides the initial ratio of Datatokens and Ocean tokens in the pool, thus setting the initial price of an asset. The price of an asset is later dependent on the pool's liquidity and the price impact of trade in the pool.
Publishers can set the pricing model of an asset to Dynamic pricing if they want the market to decide the asset price and thus enable auto price discovery.
The image below shows how to set the Dynamic pricing of an asset in the Ocean's Marketplace. Here, the asset price is initially set to 50 Ocean tokens.
![dynamic-asset-pricing](<../.gitbook/assets/dynamic asset pricing>)
Ocean Protocol also allows publishers to set the pricing using ocean.js and ocean.py library.
#### Asset price
**Action: Add liquidity**
With one-sided staking, when liquidity is added to the pool, the Ocean tokens are added to the liquidity pool. To protect funds from impermanent loss due to changes in the ratio of tokens in the liquidity pool, Ocean Protocol's bot mints new datatokens and adds them to the pool. Thus, when liquidity is added to the pool, the ratio of tokens remains constant, and there is no price impact on the datatoken.
**Action: Remove liquidity**
When the liquidity is removed from the pool, the Ocean tokens are returned to the liquidity provider who initiated the action. Ocean Protocol's bot burns the datatokens from the liquidity pool to protect funds from impermanent loss due to changes in the ratio of tokens in the liquidity pool. Thus, even in this case, there is no price impact on the datatoken.
**Action: Buy datatoken**
When a datatoken is bought by paying Ocean tokens to the pool, the ratio of Ocean token and datatoken changes: there are more Ocean tokens and fewer datatokens in the liquidity pool. Therefore, as the ratio of datatokens/Ocean tokens changes, the liquidity pool increases the amount of Ocean tokens required to buy a datatoken in the following transactions(to maintain a constant ratio). Thus, the price of the datatoken increases whenever a datatoken is bought.
**Action: Buy dataset**
Buying a dataset involves swapping a datatoken from the liquidity pool by paying Ocean tokens. Thus, if users buy datatokens, the price of datatokens will increase. However, if users already have the datatokens, they can use them to buy the asset or the service without requiring interaction with the pool. In such a case, the price of the datatoken doesn't change.
**Action: Sell datatoken**
When a datatoken is sold, Ocean tokens are removed from the liquidity pool in exchange for datatoken. Thus, the ratio of Ocean tokens and datatokens changes: there are fewer Ocean tokens and more datatokens in the liquidity pool. As there are more datatokens, the liquidity pool decreases the amount of Ocean tokens required to buy a datatoken in the following transactions(to maintain a constant ratio). Thus, the price of the datatoken decreases whenever a datatoken is sold.
### Free pricing ### Free pricing
With the free pricing model, the buyers can access an asset without requiring them to pay for it except for the transaction fees. With the free pricing model, the buyers can access an asset without requiring them to pay for it except for the transaction fees.

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using-ocean-market/README.md
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@ -10,4 +10,3 @@ https://v4.market.oceanprotocol.com/
1. Ocean Market enables publishers to monetize their data and/or algorithms through blockchain technology. 1. Ocean Market enables publishers to monetize their data and/or algorithms through blockchain technology.
2. Consumers can purchase access to data, algorithms, compute services. 2. Consumers can purchase access to data, algorithms, compute services.
3. Liquidity providers can add their OCEAN tokens to liquidity pools and earn interest on the transactions.