Coliquidity is better suited for long-term holding. You can make more money this way, because you will accumulate more LP fees. Meanwhile, if the token continues to go up, you’ll also capitalize on the uptrend.
Coliquidity profit = Trend profit + LP fees profit.
Since “LP fees profit” is always positive, it is always better to use Coliquidity than simply buying and holding without providing liquidity.
All decentralized exchanges that use liquidity pools can also use Coliquidity. For example:
- … many more
The user who called the Coliquidity smart contract pays for gas.
If the call results in opening a new pool, the user pays for opening a new pool as well. We recommend that projects make this call from their account, so that regular traders don’t have to pay for opening the pool.
We also have plans to integrate Coliquidity with the Ethereum Gas Station Network. As soon as this integration is implemented, the users won’t need to pay for gas anymore.
We will use Coliquidity to open the SHLD-WBNB pool on PancakeSwap. The specific plan will be announced closer to launch date. However, we can share some details already:
- The price will be lower than on SHLD-WETH pool (to incentivize traders to buy immediately on launch).
- The Coliquidity pool will have a hard cap (to incentivize providers to deposit earlier to secure their allocation).
Yes, you can short the tokens that you own. Please note that when you close the short, you will receive a lot of tokens that you’ve shorted. This happens because closing the short means withdrawing liquidity, and you receive the same token when you withdraw from the pool.
To maximize profit, you should short the tokens that are going down right now, but will be going up in future (according to your analysis).
Yes, you can try it on the following pages:
Click “Contract > Write contract” to see the list of available methods:
- Use “createOffer” if you want to deposit initial liquidity.
- Use “createPosition” if you want to match your liquidity with an existing offer & put the combined liquidity into the pool.
- Use “withdrawPosition” if you want to redeem your LP tokens & withdraw liquidity from the pool.
- Use “withdrawOffer” if you want to withdraw initial liquidity. Please note that if someone has already created a position using your initial liquidity, you will need to call “withdrawPosition” first (for every open position). You can see all your positions with “positionsByMaker” call (see below).
Click “Contract > Read contract” to see the list of available calls:
- Use “offersByMaker” to see your offers
- Use “positionsByMaker” to see your positions in which you are the maker (offer creator)
- Use “positionsByMaker” to see your positions in which you are the taker (position creator)
- Regular positions: you can withdraw anytime.
- Timelocked positions: you can withdraw as soon as the lock period finishes.
The timelocked positions are created by accepting timelocked offers. The app will clearly mark such offers & show the lock period, so that you can decide if you want to accept it. Normally, timelocked offers come with additional benefits (for example, extra project tokens).
- Because you earn LP fees.
- Because you have no slippage on entry / exit (perfect for whales).
- Suppose you buy & sell the token directly. You lose on LP fees & slippage two times (both when buying & when selling). Your profit depends on the price change, minus LP fees, minus slippage.
- Suppose you provide one-sided liquidity via Coliquidity. You earn LP fees, you have no slippage. Your profit is a function of the price difference plus gains on fees.
- Coliquidity makes your position less sensitive to price difference. That means you lose less & gain less compared to a regular long position. However, Coliquidity gives you LP fees. Therefore, Coliquidity gives you a better risk/reward profile (because price sensitivity is decreased symmetrically, but the fees are always a plus)
Coliquidity Simulations (see scenarios with “High volatility” = TRUE)
Note Coliquidity works best for long-term positions (it accumulates more LP fees). For very short-term positions, it’s better to simply buy & sell tokens. One exception is high-volume high-volatility markets - in these it’s more profitable to use Coliquidity even for short-term positions.
WithdrawalAmount = PoolLiquidity * PoolShare
- The pool has 1000000 ABC + 200 ETH.
- Your pool share is 2.5%.
- Your withdrawal amount is 5 ETH.
We’re working on a UI update where you will be able to see the withdrawal amount automatically (no manual calculations).
The smart contract will check the timelock of the coliquidity position:
- If the timelock hasn't expired yet, the smart contract will deny withdrawal.
- If the timelock has expired, the smart contract will withdraw the requested part of the position:
- Send token 1 to the provider of token 1.
- Send token 2 to the provider of token 2.
- The provider can set the timelock to zero (= no timelock) when creating an offer for coliquidity position.
- The provider can change the default action from “send the token” to “leave the token in the Coliquidity contract” by setting “reinvest” option to “true”. This is recommended for providers who want to invest for long term.
- Both providers will receive tokens at the same time, even if only a single provider requests a withdrawal. This implementation prevents a deadlock, which could happen if both provider votes were required and one of the providers would become unavailable.
No, it’s a different concept.
- Coliquidity allows providing one-sided liquidity at the current price.
- Uniswap allows providing one-sided liquidity strictly above or strictly below the current price.
With Coliquidity, you’re making money immediately & always. With Uniswap, you’re making money only when the price is within your liquidity range (not immediately, not always).
Proof: Uniswap docs (search for “single-sided liquidity”).
Yes, you can make money using Coliquidity in a bear market. For example:
- You’re bullish on ETH long-term.
- You’re bearish on ETH short-term.
- You provide ETH into the ETH-USDT pool.
- ETH-USDT price goes down (bear market).
- There is more ETH in the pool / less USDT in the pool.
- You take out more ETH, because your pool share stays the same (always, no matter whether it’s bull or bear market).
Any pair with a liquidity pool supports Coliquidity.
We will build an application where the users could provide coliquidity for a single side of the position, see the offers of other users & provide the second side of the mutual coliquidity position.
Any EVM-compatible blockchain supports Coliquidity. For example:
- Ethereum - ETH
- Binance Smart Chain - BSC
- Polygon - MATIC
- Avalanche - AVAX
- Reef Chain - REEF
- Fantom - FTM
- … many more
We have plans to port Coliquidity to blockchains with other VM implementations (e.g. Solana).
1-Click Liquidity is a widget for providing liquidity into your pool.
Most users don’t provide liquidity because it’s too hard: they have to calculate how much of your token they should buy to provide liquidity at correct ratio. It takes mental effort, and it takes time. So most users just skip this opportunity, leaving your pool with low liquidity.
1-Click Liquidity is a solution for this problem. It allows the users to provide liquidity into your existing pool in a single click. Technically, it is a widget for your project website. The widget has a form with “Amount” field & submit button. The “Amount” field is prefilled with desired amount of liquidity. To provide liquidity, the user simply needs to submit the form (make 1 click).
All without leaving your project website.
Interested to learn more? Schedule a call with us (if you have a direct contact), or send a message to our general Telegram group.
Note: this is a temporary instruction for project owners. We are currently developing a user interface that would automate most of these steps.
Choose how much liquidity you want to see in the pool:
- We recommend choosing the token amount equivalent to $150000 - $200000.
Approve liquidity amount for depositing into Coliquidity smart contract:
- Open your token contract on blockchain explorer
- Click “Contract”
- Click “Write contract”
- Find “approve” function
- Fill approve function form:
- Address: [Coliquidity address - see below]
- Open Coliquidity Info
- Find the address for your network
- Copy the address
- Amount: [Amount of tokens multiplied by 10 in power of [decimals]]
- Important: the amount must be multiplied by 10 ^ [your token decimals], otherwise you will approve an insufficient amount.
- Address: [Coliquidity address - see below]
- Click “Write”
- Confirm transaction
- Wait until transaction is confirmed
Deposit liquidity into Coliquidity smart contract:
- Open Coliquidity
- Approve on TAUR contract page:
- address: 0xcd9dc4C48DDC0e578bd2C42254841f0223b88a3F
- amount: 120000 TAUR * 10 ^ 18 decimals = 120000000000000000000000
- Create offer on Coliquidity contract page:
- makerToken: 0x19b99162adaab85134e781ac0048c275c31b205a
- makerAmount: 120000 TAUR * 10 ^ 18 decimals = 120000000000000000000000
- taker: 0x0000000000000000000000000000000000000000
- takerTokens: [0xe9e7CEA3DedcA5984780Bafc599bD69ADd087D56]
- makerDenominator: 0
- takerDenominator: 0
- reinvest: true
- pausedUntil: 0
- lockedUntil: 0
Yes - if the project sets Offer.lockedUntil parameter to a specific timestamp in the future. No rug pull is possible until Offer.lockedUntil is passed.
Here’s a more technical explanation. Coliquidity provides a special parameter: “Offer.lockedUntil” (see contract). This parameter is checked when the “withdrawPosition” method is called: if the current timestamp is less than Offer.lockedUntil, the withdrawal is denied. Therefore, it is not possible to withdraw liquidity (do a rug pull) before the current timestamp passes Offer.lockedUntil.
Please note that Offer.lockedUntil can be set to 0, which allows withdrawals anytime.
Yes, please see details below:
Please note that LP tokens do not show up in the users’ wallets - they are locked in the Coliquidity contract. That means you need to adjust the reward calculation algorithm to make a call to fetch the LP token balance from the Coliquidity contract. Otherwise, you can run the same liquidity mining program as you planned.
Yes, if you want to get more liquidity.
More liquidity → Less slippage → More traders → Higher volume.
- If you plan to provide liquidity with only one token: yes, you can migrate liquidity manually using the following steps (we’ll automate this in our app soon):
- Withdraw liquidity from the pool.
- (Optional) Consolidate position: swap one token for another to double the size of your liquidity position.
- Deposit liquidity into the Coliquidity contract.
- If you plan to provide liquidity with both tokens: no need to migrate. However, please consider that one of the tokens may go down in value relative to another token. With Coliquidity, you can prevent such loss by converting the full position into this token and providing liquidity using only this token.
Coliquidity and Market Crash Protection are two different products. We intend to develop them separately, see which one generates more revenue & focus on that one (choose the most successful product).
Coliquidity works with existing decentralized exchanges - it doesn't replace them. So the answer has two parts:
- Yes, you can use Coliquidity to provide liquidity into the pools on Uniswap / SushiSwap / PancakeSwap / other exchanges.
- No, you can’t use Coliquidity to buy & sell tokens (you can just use existing exchanges).
Additionally, Coliquidity is similar to Uniswap because it’s also a marketplace (read more).
See also: Is Coliquidity the same as Uniswap V3?
Yes, Coliquidity matches the liquidity providers who have different tokens & want to deposit into the same pool together. For example:
- Alice has USDT.
- Bob has ETH.
- Alice & Bob want to provide liquidity into ETH-USDT pool.
- Coliquidity will match them (take Alice’s USDT and Bob’s ETH, then put it together into the pool).
Being a marketplace is a competitive advantage. People start trading where others are already trading. So if we get a core user base, it will grow naturally, and people will be wary of using competitors (who are not original implementers of the idea).
As of 08 Jan 2022, we have not heard of any projects with the same idea.
Yes, we already have users on Binance Smart Chain Mainnet (people who deposited during the Marnotaur token launch).