Phase 4: Open Liquidity
This phase will focus on Open Liquidity pools and the enhanced community experience. The goal is to update the ImmutaSwap app to provide the ability for community members to contribute to the AMM liquidity pools and generate passive income from the exchange service fees. See revenue for more information.
Liquidity will be tracked via ImmutaSwap's Liquidity NFT. These NFT's will be minted and distributed to Liquidity Providers when they successfully contribute liquidity to the pool. ImmutaSwap will disburse dividend rewards to the holders of these NFT's proportional to the amount used to create the NFT. When the Liquidity Provider wishes to withdraw their contribution, they will transfer ownership back to ImmutaSwap. Then ImmutaSwap will distribute the value of the NFT to its holder (see impermanent loss) and the NFT will be burned.
The ImmutaSwap Open Liquidity deployment shall include the following milestones:
- Create Liquidity Provider NFT to represent the user-provided liquidity.
- Update the ImmutaSwap app to support multiple Liquidity Pools and allow fund deposit/withdrawal.
- Modify ImmutaSwap App to provide community incentives for contributing to specific Liquidity Pools. External projects can define these incentives and advertise their rewards on ImmutaSwap.
- Design the dividends distribution plan.
- UX updates to allow Liquidity Provider to:
- Track revenue
- Track dividends
- Withdraw liquidity
Note: ImmutaSwap has no plans to implement concentrated liquidity at the time of writing this.