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Alchemical synthetic tokens require deep liquidity in order to be maximally effective. The StakingPools.sol contract powers Staking Pools. Its primary purposes are distributing ALCX tokens to the community and providing liquid pairs for tokens in the Alchemix ecosystem.
At launch, there were four pools, one for alUSD, one for ALCX, one for alUSD/DAI SLP (Sushi Liquidity Pair) tokens, and one for ALCX/ETH SLP tokens. Since then alETH has also been added as a synthetic asset option. The emissions distribution is modified through governance proposals. Below are the types of pools, how they are incentivized, and their reasoning for existing:
- alUSD and alETH LP tokens. Establishing a peg as close to $1/1 ETH as possible and providing deep liquidity for alUSD and alETH is important for the value proposition of Alchemix as well as liquidity provider confidence. Doing so will give real utility for alUSD as an advance on yield farming income as it can easily be converted to DAI, USDC, or USDT with low slippage. Incentivization is carried out through protocol owned sdCRV and vlCVX, as well as ALCX emissions going to staking pools and vote bribing platforms.
- ALCX/ETH SLP tokens. This pair exists to provide liquid markets for the ALCX governance token.
- ALCX tokens. This pool is to reward holders of ALCX who may be too risk-adverse to join in the ALCX/ETH pool, and serves as an anti-dilutive measure for ALCX holders. The longevity of this pool will be determined by the community.
These pools and the weights thereof will be adjusted as Alchemix brings more alchemical synthetic tokens to market. The priority will be incentivizing synthetic pairs with their base asset.