Demeter Protocol
Works on Arbitrum Uniswap V2, Uniswap V3, Camelot V2, Camelot V3 and Balancer V2.
Last updated
Works on Arbitrum Uniswap V2, Uniswap V3, Camelot V2, Camelot V3 and Balancer V2.
Last updated
Demeter protocol is a protocol for DAOs to launch and manage decentralized exchange liquidity - without needing to know how to code. Demeter gives users the power to launch incentivized liquidity pools on Uniswap V3 and Camelot V2. Future versions will support custom liquidity shapes on major DEXs such as Balancer, Sushiswap or anything veSPA holders prefer. Demeter is launched on Arbitrum and will be expanded to Optimism, Polygon and Ethereum soon. Additional blockchains will be added in future versions.
Demeter automates the fundamental aspects of launching and managing decentralized exchange liquidity for the DAOs native token:
Engineering support to launch and manage the farm - The Audited Demeter Farm Factory contract will generate the pool and farm contracts for the Demeter user.
Marketing support to make the community aware of the new farm - Protocols that launch their farm through Demeter benefit from being whitelisted on the Demeter active farms dashboard. This exclusive list features all of the farms that are actively distributing rewards that were deployed with Demeter. Farmers will regularly look to this dashboard for new projects and become users of these protocols.
On Arbitrum, Uniswap has less liquidity than Balancer and Sushiswap. This is because Sushiswap uses the simple Uniswap V2, x*y=k approach. This is simple because all LP tokens are the same, but penalizes the LP because they are forced to provide liquidity from 0 to infinity. Incentivized liquidity pools on Uniswap V3 lets DAOs benefit from concentrated liquidity - the same TVL offers less slippage compared to diluted liquidity. This directly translates to a lower emissions budget for other protocols and much more fees for LPs.
To launch a Uniswap V3 or Camelot V3 farm, DAOs are currently expected to write complicated V3 farm contracts, get the contracts audited, incentivize LP deposits with only their native token, then promote this new pool. With Demeter, DAOs can launch these farms without knowing how to code and get marketing and technical support from Sperax. DAOs can also launch their farms on Camelot V2, their farms can get rewards both in SPA and Camelot tokens (xGRAIL/GRAIL) that decrease DAO's token spend and decrease sale pressure on it.
In Demeter Protocol V2, we have focused more on the protocol's multichain vision and to support that, we have discontinued incentives on pairing with SPA and USDs as these tokens are not available on all the chains. Now the fee params are configurable in in the farm registry contract, more details in the next section.
