Restricted Group Queues

What are Liquidity Queues?

These queues are designed for market makers (liquidity providers) seeking to exit positions without slippage at spot-market prices. Market makers will be able to place their liquidity on a specific queue (i.e. BNB > USDT) and be protected from any impermanent loss since they only provide a single asset.

Restricted Group Queues

Restricted Group Queues (Group Queues in short) enable liquidity providers to offer a token at a specific price that can only be accessed by a defined group of user addresses.

Key Features of Restricted Group Queues

Following are key features of Group Queues:
    Group whitelisting - Liquidity only available for defined addresses to swap against.
    Liquidity allocation - Trade size allocations can be defined for all or specific members of the group.
    Defined validity period - Liquidity will only be available for the defined duration
    Restricted withdrawal options - There is an option to lock liquidity in the queue to demonstrate that the liquidity is ‘committed’ and cannot be withdrawn unless there were no takers during the validity period.

Unique-to-DeFi Use Cases

The section above describes some of the key features of Restricted Group Queues, these features open the door to a number of unique-to-DeFi use cases such as:
    Price assurance IDO token launches - New projects can use the group queues to whitelist their initial IDO participants along with a specific allocation so that they can offer a ‘token buy-back’ for a specific period of time to provide their IDO participants with a type of price assurance. For example, a project IDO’s their NEWTOKEN at 1USDT, may create a group queue that will buy back NEWTOKENs at 0.75 USDT for a period of time in the future to provide their support with comfort to back the project. This liquidity would be locked on-chain and transparent to the community as proof of ‘price assurance’.
    Restricted group trade offers - A liquidity provider or trader may elect to offer certain assets at a specific price but only for a targeted group of counterparties. This can be done using group queues. In this scenario, the liquidity provider will have the option of not restricting withdrawal.
In order to use OpenSwap's Restricted Group Queues, a fee will be charged in terms of OSWAP for setting up each queue, for example:
    Flat fee to create Group Queue: e.g. 1,000 OSWAP
    White List Address: e.g. 5 OSWAP per address added to the group
(OpenSwap Restricted Group Queue's initial fee structure will be determined and announced closer to feature launch date)
The collected $OSWAP tokens will go towards the protocol, to be used in future ecosystem-building activities. Fees can be changed through governance votes.
Once the group queue is established, group takers will pay the regular 0.1% as a swap transaction fee, where 0.05% will go back to the liquidity provider and the remaining to the protocol.

How do Restricted Group Queues Work?

Restricted Group Queues are based on the liquidity queue architecture with additional features and capabilities on the contract governing the liquidity queues.
Similar to Spot Price Queues, each new queue pair needs to be voted into place through the OpenSwap governance process. After the queue is voted into place, liquidity providers can define their own 'queues' within the queue pair.

Wish to learn more about OpenSwap Liquidity Queues?

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More information about OpenSwap Liquidity Queues will be shared with the community as the project develops. In the meanwhile, please feel free to follow us on Twitter to receive the latest news and updates from OpenSwap: https://twitter.com/openswapdex
Last modified 1mo ago