1/13
This is awesome. @ChadMcchief and the @RevenantLabs team have just released their second "Making It Simple" episode of their RevCast podcast. The episode details how liquidity providing will work on Singularity - the project they will be releasing soon. Here's a short 🧵:
2/13
The episode is a wonderfully concise overview of how single-sided liquidity providing will work on Singularity. The value proposition of their new project is unique and innovative. Let's dive a little deeper (not too deep, we're not all gigabrained wizards after all):
3/13
A bit about swaps and slippage:
Traditionally, prices in automated market makers (AMMs) are discovered via the market. Singularity, as opposed to other AMMs, uses oracle price feeds to determine the prices of assets in their respective pools.
4/13
Oracle price feeds send aggregated price data from numerous sources on multiple chains as well as from outside the blockchain (centralized exchanges). Basically they provide more accurate prices than any decentralized exchange can under the typical AMM model.
5/13
Using oracle price feeds result in extremely competitive slippage rates. I am trying not to get too technical, but I will link some of @RevenantLabs' docs explaining how oracle price feeds and pool collateralization allow for the lowest slippage and the best swap rates.
6/13
All you need to know is that slippage is greatly reduced, which saves you money on your swaps.
(Quick side note: Twitter thread structures are really annoying to write with 🙃)
OK, now for liquidity providing (LPing):
7/13
The two-token LP model we have become familiar with can cause you to fall victim to impermanent loss (lose money) through large price swings from one or both of the tokens. Single-sided (one asset) liquidity providing completely eliminates this IL.
8/13
Singularity uses an aggregated basket of oracle feeds that update almost instantaneously, allowing it to best judge where to concentrate liquidity. This, along with some other wizardry, make single-asset liquidity providing possible.
9/13
It's complicated I know, but if you understand what IL is and you want to avoid it, just know that Singularity can make that possible for you through single-asset pools.
Another huge plus of providing liquidity on Singularity is how the fees are accrued:
10/13
The LP token that you receive for providing liquidity perpetually increases in value in proportion to the fees that you are generating. Essentially, your rewards are compounded for you. This eliminates the need to spend time and gas costs manually collecting your rewards.
11/13
Now, this thread doesn't even come close to explaining the depth and complexity of how Singularity manages to achieve these feats. It is an exciting new frontier for #FTM that's worth exploring further if you're a member of this community. My only goal here was...
12/13
To help spread the word about an exciting new project on #FTM from a seemingly uber talented team, to educate, and to direct your attention to the podcast they have been making: A clear, easy to understand discussion, well worth a listen if you're interested. Resources 👇
13/13
Podcast: rss.com/podcasts/revca…
Medium & Docs: revenant-labs.medium.com/what-is-singul…
&
docs.revenantlabs.io/singularity/

Thank you for reading!✌️❤️

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