Multi LST Pool

Nativerse’s multi-LST pool is designed to support an unlimited number of Liquid Staking Tokens (LSTs), fostering an ecosystem where users can swap multiple LSTs seamlessly. This pool structure not only offers flexibility but also helps new LST projects to bootstrap liquidity and grow within the ecosystem.

Input and Output Fees Explained

Input Fee

This fee is encountered when a user purchases a specific token in the pool:

$$\text{Input Fee (bps)} = \text{Base Fee} \times \frac{\text{Token Supply}}{\text{Total Pool Supply}}$$

Tokens with a higher supply in the pool have a higher Input Fee, which discourages excessive accumulation of any single token type.

Output Fee

This fee is applied when a user sells a specific token from the pool:

$$\text{Output Fee (bps)} = \text{Base Fee} \times \frac{\text{Total Pool Supply}}{\text{Token Supply}}$$

Tokens with a lower supply in the pool incur higher Output Fees, making them more challenging to sell.

This mechanism encourages users to retain tokens that are in low supply, helping to maintain balance in the pool.

Example Calculation

Using the supplies of tokens A, B, C, and D, let’s calculate the Input and Output Fees, assuming a base fee of 10 bps (0.1%).

• Token Supplies in Pool:

  • A: 1200

  • B: 3000

  • C: 6000

  • D: 5000

• Total Pool Supply = 1200 + 3000 + 6000 + 5000 = 15,200

Using these values, we get the following Input and Output Fees:

Token	Input Fee (bps)	Output Fee (bps)
A	0.79	126.67
B	1.97	50.67
C	3.95	25.33
D	3.29	30.40

Interpretation of the Example

This fee structure allows us to understand the ease or difficulty associated with purchasing or selling each token, ensuring pool stability:

1. Token A

   • Input Fee: 0.79 bps (lowest among all tokens)

   • Output Fee: 126.67 bps (highest among all tokens)

   • Explanation: The low Input Fee means that purchasing Token A is easy, but the high Output Fee makes it challenging to sell. This setup encourages users to acquire Token A, balancing its presence in the pool.

2. Token C

   • Input Fee: 3.95 bps (highest among all tokens)

   • Output Fee: 25.33 bps (lowest among all tokens)

   • Explanation: The high Input Fee indicates that purchasing Token C is harder, while the low Output Fee makes it easy to sell. This mechanism promotes balance, as users are more likely to retain Token C, ensuring stable liquidity.

By implementing these fees, Nativerse maintains equilibrium in the pool, allowing tokens to move freely without any one asset dominating or depleting the pool's liquidity.

Supporting New LSTs and Simplifying Creation with Nativerse

The multi-LST pool allows new LSTs to integrate quickly, reducing entry barriers and enabling fast liquidity for emerging projects. This setup not only supports the growth of new LSTs but also simplifies the LST creation process through Nativerse, making it accessible and efficient for users with minimal technical resources.