Tokemak Popularity

Tracer Bounties

Tokemak

Tokemak is a ‘DeFi primitive designed to generate sustainable liquidity.

Where does the name tokemak come from?

A bit of physics first. A tokamak (with an ‘a’) is a machine in the shape of a donut (torus) that uses powerful magnetic fields to confine plasma. It was invented in Russia, and the funny word ‘tokamak’ in Russian is an abbreviation of ‘toroidal chamber with magnetic coils’. In the future, tokamak reactors may be able to produce enormous amounts of energy through nuclear fusion.
Now you should see where the ‘Token Reactor’ part comes from. ‘Tokemak’ is a clever pun: it combines the concept of a powerful generator of energy (or, in our case, liquidity) with the word ‘token’. By the way, you shouldn’t confuse the Tokemak protocol with Tokamak Network, an interoperability solution for Layer-2 protocols.
Tokemak is a liquidity primitive that aims to solve a whole host of DeFi problems. It should supply liquidity that is sustainable (i.e. doesn’t come from inflationary yield farming), fluid (moves between markets), decentralized, and capital-efficient (i.e. fully used).
Tokemak achieves this through a network of reactors (liquidity pools). Users deposit a single asset into a reactor and earn rewards in TOKE. The funds accumulated in a reactor are distributed across different trading platforms and currency pairs.
The DAO of TOKE holders decides which projects should be whitelisted to get their own reactors, as well as where the funds should be deployed. You need to stake TOKE in a particular reactor to become a Liquidity Director (LD) and get voting power for that reactor. TOKE also serves as collateral for the whole network.
Tokemak has a system for balancing the reactors. If there are a lot of assets deposited in a pool but not many TOKE, the APY on TOKE staking for that pool is increased to attract more liquidity directors. And the other way around, if there are many LDs but not enough capital, the APY on the reactor’s main asset is increased to attract liquidity providers.

Available pools

Tokemak started out with several Genesis Pools: USDC, DAI, ETH, and sUSD. Next it launched a series of so-called Collateralization of Reactors Events (C.O.R.E.), where TOKE stakers voted on a list of 36 assets to decide which ones would get their own reactors. They chose the following five:

1- Frax (FXS)

2- Alchemix (ALX)

3- Tracer DAO (TCR)

4- Olympus DAO (OHM)

5- SushiSwap (SUSHI)

If you’re not familiar with any of these except for SUSHI, don’t worry: these are all DeFi 2.0 protocols, and we will cover them in this and the next article on the subject. The second C.O.R.E. vote began on November 9. The list of 45 candidates includes mostly well-known projects like Aave, MakerDAO, Compound, Fantom, and Axie Infinity.

Data Analysis

The following chart shows the trend of changes in the number of TCR holders over time. According to the chart below, the number of TCR holders jumped sharply on September 16th, 2021.

The last number of TCR holders is equal to:

In the next step, we want to see how many TCR holders have added liquidity to Tokemak.