Tokemak is a protocol built to create sustainable liquidity for other decentralized finance (DeFi) projects. Its underlying infrastructure works by pooling tokens that are currently idle, then using them to form and deploy long-lasting liquidity. The system aims to increase transparency and help liquidity provision become more open and effective across different networks.

With that goal, Tokemak is intended mainly for liquidity providers and yield farmers. It’s also designed for DAOs (decentralized autonomous organizations), emerging DeFi projects, and exchanges. In short, Tokemak is a decentralized market-making platform where users can both supply and access liquidity, and influence where that liquidity is directed.

TOKE serves as the network’s native token. You can view the TOKE market price on this page. TOKE is used to reward protocol participants, support network governance, and help direct where liquidity flows.

What are Tokemak’s key features and how does it work?

Tokemak’s platform architecture includes multiple roles and functional components.

Liquidity Providers (LPs) deposit assets into a Token Reactor and/or Genesis Pools (such as ETH or USDC), then earn yield paid out in TOKE from deposits made with a single asset. Once deposited, the assets are sent out to various exchanges to provide liquidity across multiple pairs.

Liquidity Directors (LDs) use the TOKE token to steer liquidity flows. To do this, an LD stakes TOKE into a specific reactor and applies that stake as voting power to allocate liquidity to the exchange they choose. Voting influence is tied to both the staked TOKE amount and the asset amount held in the reactor by the LD.

Tokemak runs in repeating cycles, with the cycle length initially set to one week-subject to voting by the Tokemak DAO. During the Mid-Cycle phase, assets may be deposited, and Liquidity Directors can vote and adjust arrangements. When a new cycle starts, assets are deployed.

t(Assets) are issued to LPs based on the asset they deposited into a reactor. An equivalent quantity of t(Assets) is provided, which can then be used to claim the original deposited funds. After the initial asset is returned to the liquidity provider, the corresponding t(Assets) are burned.

What is noteworthy about Tokemak?

Tokemak uses an incentive mechanism to maintain an appropriate balance between the assets deposited and the TOKE staked in reactors. If more of a reactor’s assets are deposited relative to TOKE staked, LDs get an APY boost, encouraging additional staking. The reverse applies when TOKE staked is high while asset deposits are low, leading to higher APY for LPs to encourage more asset provision.

What can TOKE be used for?

TOKE holders can also take part in the Tokemak DAO. The DAO manages the operation of the protocol, and TOKE is used as collateral for the network. 

Where can you buy TOKE?

You can buy TOKE on any exchange listed in the market tab.

Some widely used exchanges include Uniswap, SushiSwap, and MEXC Global. TOKE’s price will vary depending on the exchange you choose and other factors. 

For current and historical TOKE Price information, please review the data charts on this page.