From e1b9b2c4a084659e6617a243a44622e793a64b76 Mon Sep 17 00:00:00 2001 From: Akshay Date: Mon, 20 Jun 2022 12:30:41 +0200 Subject: [PATCH 1/7] Issue-#1017: Add content on factor affecting price in asset pricing page --- content/concepts/asset-pricing.md | 32 +++++++++++++++++++++++++------ 1 file changed, 26 insertions(+), 6 deletions(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index 82246d6a..2543c4e7 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -5,7 +5,7 @@ description: Choose the revenue model during asset publishing Ocean Protocol offers 3 types of pricing options for asset monetization. The publisher can choose a pricing model which best suits their needs while publishing an asset. The pricing model selected cannot be changed once the asset is published. -The price of an asset is determined by the number of Ocean tokens a buyer must pay to access the asset. When users pay the right amount of Ocean tokens, they get a *datatoken* in their wallets, a tokenized representation of the access right stored on the blockchain. To read more about datatoken and data NFT click [here](/concepts/datanft-and-datatoken). +The price of an asset is determined by the number of Ocean tokens a buyer must pay to access the asset. When users pay the right amount of Ocean tokens, they get a _datatoken_ in their wallets, a tokenized representation of the access right stored on the blockchain. To read more about datatoken and data NFT click [here](/concepts/datanft-and-datatoken). ## Fixed pricing @@ -23,14 +23,14 @@ The image below shows how to set the fixed pricing of an asset in the Ocean's Ma 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. +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. +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. +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. +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. @@ -42,6 +42,26 @@ The image below shows how to set the Dynamic pricing of an asset in the Ocean's Ocean Protocol also allows publishers to set the pricing using ocean.js and ocean.py library. +### Effect on price due to changing liquidity + +#### Action: adding/removing liquidity from pool + +With one-sided staking, when liquidity is added to the pool, the user's ocean tokens are added to the liquidity pool. To protect users' 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 users add liquidity to the pool, the ratio of tokens remains constant, and there is no price impact on the datatoken. + +Similarly, when the users remove liquidity, they get Ocean tokens in return for their address. To balance the ratio of tokens in the pool, Ocean Protocol's bot burns the datatokens. Thus, in this case, there is also no price impact on the datatoken. + +#### Action: Buying datatoken + +When the user buys a datatoken by paying Ocean tokens to the pool, the ratio of Ocean token and datatoken changes, there would be more Ocean tokens and fewer datatokens in the pool than previously. As there would be fewer datatokens, the pool will increase the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken increases whenever datatokens are bought. + +#### Action: Sell datatoken + +When the user sells a datatoken and gets Ocean tokens from the pool, the ratio of Ocean token and datatoken changes, and there would be fewer Ocean tokens and more datatokens in the pool than previously. As there would be more datatokens, the pool will decrease the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken decreases whenever datatokens are sold. + +#### Action: Buy dataset + +Buying a dataset requires the users to obtain the datatokens from the pool by paying Ocean tokens. This is the same as buying a datatoken from the pool. Thus, if users buy datatokens, the price of datatokens will increase. However, if users already have the datatokens, they can simply 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. + ## 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. From b7bb6b6f395f9157e15f8f5e2be313892d0c8159 Mon Sep 17 00:00:00 2001 From: Akshay Date: Mon, 20 Jun 2022 12:30:41 +0200 Subject: [PATCH 2/7] Issue-#1017: Add content on factor affecting price in asset pricing page --- content/concepts/asset-pricing.md | 32 +++++++++++++++++++++++++------ 1 file changed, 26 insertions(+), 6 deletions(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index 82246d6a..2543c4e7 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -5,7 +5,7 @@ description: Choose the revenue model during asset publishing Ocean Protocol offers 3 types of pricing options for asset monetization. The publisher can choose a pricing model which best suits their needs while publishing an asset. The pricing model selected cannot be changed once the asset is published. -The price of an asset is determined by the number of Ocean tokens a buyer must pay to access the asset. When users pay the right amount of Ocean tokens, they get a *datatoken* in their wallets, a tokenized representation of the access right stored on the blockchain. To read more about datatoken and data NFT click [here](/concepts/datanft-and-datatoken). +The price of an asset is determined by the number of Ocean tokens a buyer must pay to access the asset. When users pay the right amount of Ocean tokens, they get a _datatoken_ in their wallets, a tokenized representation of the access right stored on the blockchain. To read more about datatoken and data NFT click [here](/concepts/datanft-and-datatoken). ## Fixed pricing @@ -23,14 +23,14 @@ The image below shows how to set the fixed pricing of an asset in the Ocean's Ma 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. +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. +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. +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. +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. @@ -42,6 +42,26 @@ The image below shows how to set the Dynamic pricing of an asset in the Ocean's Ocean Protocol also allows publishers to set the pricing using ocean.js and ocean.py library. +### Effect on price due to changing liquidity + +#### Action: adding/removing liquidity from pool + +With one-sided staking, when liquidity is added to the pool, the user's ocean tokens are added to the liquidity pool. To protect users' 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 users add liquidity to the pool, the ratio of tokens remains constant, and there is no price impact on the datatoken. + +Similarly, when the users remove liquidity, they get Ocean tokens in return for their address. To balance the ratio of tokens in the pool, Ocean Protocol's bot burns the datatokens. Thus, in this case, there is also no price impact on the datatoken. + +#### Action: Buying datatoken + +When the user buys a datatoken by paying Ocean tokens to the pool, the ratio of Ocean token and datatoken changes, there would be more Ocean tokens and fewer datatokens in the pool than previously. As there would be fewer datatokens, the pool will increase the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken increases whenever datatokens are bought. + +#### Action: Sell datatoken + +When the user sells a datatoken and gets Ocean tokens from the pool, the ratio of Ocean token and datatoken changes, and there would be fewer Ocean tokens and more datatokens in the pool than previously. As there would be more datatokens, the pool will decrease the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken decreases whenever datatokens are sold. + +#### Action: Buy dataset + +Buying a dataset requires the users to obtain the datatokens from the pool by paying Ocean tokens. This is the same as buying a datatoken from the pool. Thus, if users buy datatokens, the price of datatokens will increase. However, if users already have the datatokens, they can simply 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. + ## 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. From 869dfbe685c3b99a54c7c111c35f4b9491c77bda Mon Sep 17 00:00:00 2001 From: Akshay Date: Thu, 23 Jun 2022 20:30:43 +0200 Subject: [PATCH 3/7] Issue-#1017: Asset pricing --- content/concepts/asset-pricing.md | 22 ++++++++++++---------- 1 file changed, 12 insertions(+), 10 deletions(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index 2543c4e7..96650476 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -42,25 +42,27 @@ The image below shows how to set the Dynamic pricing of an asset in the Ocean's Ocean Protocol also allows publishers to set the pricing using ocean.js and ocean.py library. -### Effect on price due to changing liquidity +### Asset price -#### Action: adding/removing liquidity from pool +#### Action: Add liquidity from pool -With one-sided staking, when liquidity is added to the pool, the user's ocean tokens are added to the liquidity pool. To protect users' 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 users add liquidity to the pool, the ratio of tokens remains constant, and there is no price impact on the datatoken. +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. -Similarly, when the users remove liquidity, they get Ocean tokens in return for their address. To balance the ratio of tokens in the pool, Ocean Protocol's bot burns the datatokens. Thus, in this case, there is also no price impact on the datatoken. +#### Action: Remove liquidity from pool -#### Action: Buying datatoken +When the liquidity is removed from the pool, the Ocean tokens are returned to the respective address. The address only receives Ocean tokens due to one-sided staking. Ocean protocol's bot burns the datatokens from the pool to protect funds from impermanent loss due to changes in the ratio of tokens in the liquidity pool. Thus, in this case, there is also no price impact on the datatoken. -When the user buys a datatoken by paying Ocean tokens to the pool, the ratio of Ocean token and datatoken changes, there would be more Ocean tokens and fewer datatokens in the pool than previously. As there would be fewer datatokens, the pool will increase the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken increases whenever datatokens are bought. +#### Action: Buy datatoken -#### Action: Sell datatoken - -When the user sells a datatoken and gets Ocean tokens from the pool, the ratio of Ocean token and datatoken changes, and there would be fewer Ocean tokens and more datatokens in the pool than previously. As there would be more datatokens, the pool will decrease the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken decreases whenever datatokens are sold. +When a datatoken is bought by paying Ocean tokens to the pool, the ratio of Ocean token and datatoken changes, there would be more Ocean tokens and fewer datatokens in the pool than previously. As there would be fewer datatokens, the pool will increase the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken increases whenever datatokens are bought. #### Action: Buy dataset -Buying a dataset requires the users to obtain the datatokens from the pool by paying Ocean tokens. This is the same as buying a datatoken from the pool. Thus, if users buy datatokens, the price of datatokens will increase. However, if users already have the datatokens, they can simply 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. +Buying a dataset requires that the datatokens are swapped from the 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 simply 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 the a datatoken is sold Ocean tokens are removed from the pool in exchange of datatoken, the ratio of Ocean token and datatoken changes, and there would be fewer Ocean tokens and more datatokens in the pool than previously. As there would be more datatokens, the pool will decrease the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken decreases whenever datatokens are sold. ## Free pricing From d1de2cee31db04a557735c67620662218ab81d7f Mon Sep 17 00:00:00 2001 From: Akshay Date: Fri, 24 Jun 2022 11:45:12 +0200 Subject: [PATCH 4/7] Issue-#1017: Asset pricing in pool --- content/concepts/asset-pricing.md | 12 ++++++------ 1 file changed, 6 insertions(+), 6 deletions(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index 96650476..0e69d878 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -44,25 +44,25 @@ Ocean Protocol also allows publishers to set the pricing using ocean.js and ocea ### Asset price -#### Action: Add liquidity from pool +#### 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 from pool +#### Action: Remove liquidity -When the liquidity is removed from the pool, the Ocean tokens are returned to the respective address. The address only receives Ocean tokens due to one-sided staking. Ocean protocol's bot burns the datatokens from the pool to protect funds from impermanent loss due to changes in the ratio of tokens in the liquidity pool. Thus, in this case, there is also no price impact on the datatoken. +When the liquidity is removed from the pool, the Ocean tokens are returned to the respective address. 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 would be more Ocean tokens and fewer datatokens in the pool than previously. As there would be fewer datatokens, the pool will increase the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken increases whenever datatokens are bought. +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 requires that the datatokens are swapped from the 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 simply 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. +Buying a dataset involves swapping a datatoken from the 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 the a datatoken is sold Ocean tokens are removed from the pool in exchange of datatoken, the ratio of Ocean token and datatoken changes, and there would be fewer Ocean tokens and more datatokens in the pool than previously. As there would be more datatokens, the pool will decrease the amount of Ocean tokens required to buy a datatoken in the following transactions to maintain the constant ratio between tokens. Thus, the price of the datatoken decreases whenever datatokens are sold. +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 would be fewer Ocean tokens and more datatokens in the liquidity pool. As there would be more datatokens, the pool decreases the amount of Ocean tokens required to buy a datatoken in the following transactions(to maintain the constant ratio). Thus, the price of the datatoken decreases whenever a datatoken is sold. ## Free pricing From 9dbbc943b5759a47ec22c7980c24a594b643ff89 Mon Sep 17 00:00:00 2001 From: Akshay Date: Fri, 24 Jun 2022 13:21:45 +0200 Subject: [PATCH 5/7] Issue-#1017: Asset pricing in pool --- content/concepts/asset-pricing.md | 8 ++++---- 1 file changed, 4 insertions(+), 4 deletions(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index 0e69d878..0405ca04 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -50,19 +50,19 @@ With one-sided staking, when liquidity is added to the pool, the ocean tokens ar #### Action: Remove liquidity -When the liquidity is removed from the pool, the Ocean tokens are returned to the respective address. 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. +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. +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 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. +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 would be fewer Ocean tokens and more datatokens in the liquidity pool. As there would be more datatokens, the pool decreases the amount of Ocean tokens required to buy a datatoken in the following transactions(to maintain the constant ratio). Thus, the price of the datatoken decreases whenever a datatoken is sold. +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 From 681e888ab237cbfb057fb477b5c0c8e5879cc20a Mon Sep 17 00:00:00 2001 From: Akshay Date: Fri, 24 Jun 2022 13:26:29 +0200 Subject: [PATCH 6/7] Issue-#1017: Asset pricing in pool --- content/concepts/asset-pricing.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index 0405ca04..e722f74b 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -46,11 +46,11 @@ Ocean Protocol also allows publishers to set the pricing using ocean.js and ocea #### 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. +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. +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 From e4046c3a0572c790fdc152d3182830c3c566647e Mon Sep 17 00:00:00 2001 From: Akshay Date: Fri, 24 Jun 2022 13:30:18 +0200 Subject: [PATCH 7/7] Issue-#1017: Minor fix --- content/concepts/asset-pricing.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/content/concepts/asset-pricing.md b/content/concepts/asset-pricing.md index e722f74b..8efd74f9 100644 --- a/content/concepts/asset-pricing.md +++ b/content/concepts/asset-pricing.md @@ -46,7 +46,7 @@ Ocean Protocol also allows publishers to set the pricing using ocean.js and ocea #### 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. +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