Phuture
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Accessing liquidity
Information on Phuture's liquidity sources
Phuture aggregates liquidity from across the Ethereum network tapping into the most liquid decentralised exchanges for best execution and a wide array of assets.
Currently Phuture is can source liquidity from Uniswap v2 and Sushiswap.

Separating trade execution from index liquidity

Phuture's use of external liquidity sources effectively separates the cost of execution from the size and depth of the index. This is paramount to Phuture's design because by allowing the creation of any number of indices, it is inevitable the platform will support a long tail of smaller indices. Our design ensures that the trading costs of minting an index with millions under management or an index with a few thousand is exactly the same.
As a result, we remove the liquidity bootstrapping phase that is inherent with Balancer designs. If a new Balancer pool is created it starts off with a minuscule amount of liquidity and thus cannot accept one sided deposits due to extreme slippage. Therefore, users must deposit each constituent asset into the pool until the pool reaches sufficient liquidity, and can start accepting one sided deposits. This mechanism is fine if you plan to limit the number of indices created such that each index has adequate liquidity. However, as mentioned above we cannot make this assumption. It's also apparent that index investors typically don't already own the underlying tokens and would prefer to invest through one asset.
Last modified 16d ago