[4] SWP-Pairs: Liquidity Pools
Ouronet is introducing the ability to create Liquidity Pools, their used designation being SWP-Pairs (Swap Pairs)
What is a Liquidity Pool (SWP-Pair)
A Swap Pool, or SWP-Pair, is the Ouronet-native implementation of a Liquidity Pool—a cornerstone of decentralized trading and yield generation. Like traditional DeFi liquidity pools, SWP-Pairs allow users to deposit tokens into a shared vault and receive LP Tokens in return, which represent their ownership stake in the pool.
However, unlike standard liquidity pools found elsewhere in crypto, SWP-Pairs on Ouronet introduce a new era of liquidity mechanics—offering features and freedoms not available on any other platform.
Revolutionary Features Exclusive to Ouronet SWP-Pairs
1. Multi-Token Support (Up to 7 Assets)
SWP-Pairs can be formed with up to seven different tokens, allowing for highly complex, capital-efficient liquidity configurations. This opens the door to broader trading strategies, deeper liquidity, and diversified exposure within a single pool.
2. Principal Token Requirements
W (Weighted) and P (Constant Product) pools must include at least one Principal Swap Token:
OURO – The native token of Ouronet.
LKDA – Liquid Kadena, a reward-bearing token (RBT) representing staked Kadena.
These Principal Tokens ensure the pool maintains deep ecosystem relevance and staking-integrated logic.
S (Stable) Pools may omit Principal Tokens, but only under one condition: The first token in the S Pool must already exist in a W or P Pool, ensuring stable-pool connectivity with the broader ecosystem.
3. Principal vs. Non-Principal Pools
Principal Pools can only be created by the Ouronet Administrator, with no liquidity minimums.
Non-Principal Pools require:
Minimum 1000 KDA worth of liquidity to be created.
Minimum 100 KDA of liquidity to enable swaps. If the pool drops below this level, swaps are automatically disabled until replenished.
These thresholds are adjustable by Ouronet governance.
💡 Liquidity valuation is not hardcoded, but dynamically calculated using a native on-chain pathfinding system, which computes a token’s value in KDA (Kadena) using:
A Breadth First Search algorithm to detect token-to-token price routes across all existing SWP-Pairs, starting from the Principal Pool
W|LKDA-OURO-WKDA.A DIA Oracle that provides a live price feed for Kadena (KDA/USD).
This native pricing algorithm enables SWP-Pairs to evaluate any token’s KDA-equivalent value on-chain—a foundational layer for enforcing liquidity thresholds, calculating Autostake contributions, and supporting stable swap logic.
4. One Pool per Token Combo (Exclusive Ownership)
Only the token owners may initialize pools involving their assets. Once a pool is created (at a cost of 150 KDA + 4000 IGNIS), no other pool can be made with the same token combination, ensuring liquidity consolidation and preventing market fragmentation.
5. Asymmetric & Arbitrary Liquidity Provisioning
Users can add liquidity:
In asymmetric ratios (e.g., 70/30),
In arbitrary combinations (e.g., 1 out of 3 tokens, or 2 out of 7),
In any amount, without needing to match the pool's internal weights.
This is not implemented through auto-swapping (as seen in other platforms), which can leave residual dust or unintended exposure. Instead, Ouronet calculates LP Token output natively, based on what’s added directly—allowing for simple, intuitive, gas-efficient provisioning.
💡 This removes the need for users to perform complex math or rebalance portfolios just to participate—lowering entry barriers and unlocking DeFi for everyone.
6. Multi-Token Swapping (n-1 to 1)
W and P Pools allow a user to input up to n−1 tokens to receive the n-th token as output—maximizing swap flexibility.
For example, in a 4-token pool:
Input: Token A + B + C
Output: Token D
This is natively supported by the pool mechanics (no manual routing or aggregation required). Note: This feature is not available in S Pools due to their unique stable-swap algorithm.
7. Liquid Kadena Index Auto-Funding (Global Switch)
A unique global mechanic can be activated by the Ouronet Administrator:
A matching swap fee is burned to boost the LKDA staking index.
If a pool sets a 1% fee for LPs, another 1% is rerouted to increase the LKDA/WKDA reward ratio, passively strengthening the Liquid Kadena Autostake Pool.
This feature is on by default, ensuring the entire SWP ecosystem naturally enhances the Liquid Kadena staking economy.
8. Special Fee Routing (Up to 4 Targets)
SWP-Pool owners (depending on their Major Elite Account Tier) can assign up to 4 Special Fee Targets—external addresses where a portion of swap fees are redirected.
This feature enables:
Profit-sharing with DAOs, treasuries, or partners
Revenue streaming to smart contract utilities or vaults
Dynamic fee distribution mechanics
It’s a flexible, modular way to program monetary flow into the DeFi stack.
9. On-Chain Token Pathfinding and Swap Constraints
Unlike traditional DeFi platforms that rely on off-chain route finders or external aggregators, Ouronet SWP-Pairs integrate native on-chain path discovery using a Breadth-First Search algorithm. This algorithm is capable of:
Computing token-to-token pricing paths across all existing SWP-Pairs.
Integrating with the Kadena price oracle (via DIA) to derive any token’s KDA-equivalent value.
Dynamically enforcing liquidity thresholds for non-Principal pools.
Driving Autostake contributions with exact token valuations.
This design ensures full price transparency, deterministic outcomes, and zero reliance on external computation.
⚠️ While powerful, this system does not support multi-hop swaps within a single transaction.
All swaps occur within a single SWP-Pair at a time. To perform a multi-hop swap, users must execute multiple swaps sequentially across the pools involved.
Why This Is Actually a Strength
Swaps remain 100% predictable, deterministic, and cheap.
Gas efficiency is preserved, avoiding bloated multi-hop transactions that may exceed Kadena's per-transaction gas cap (150k gas).
Reduces smart contract complexity and surface area for exploits.
Encourages transparent, modular routing through dApps, allowing better control and error-handling.
✅ In essence: You gain full composability and flexibility—but with on-chain clarity and no hidden auto-routing behind the scenes. Just clean, verifiable swaps.
10. Sleeping & Frozen LPs: Native Liquidity Lock Mechanics
Ouronet’s SWP-Pairs are uniquely equipped with advanced, native liquidity lock mechanisms, offering both temporary and permanent lock options directly through the LP Token layer—via Sleeping LPs and Frozen LPs.
These innovations go far beyond traditional DeFi mechanisms, enabling more flexible, programmable, and trustless liquidity behaviors, all without relying on external contracts or complicated wrappers.
🔹 Sleeping LPs: Temporary Locking with optional Transferability
Sleeping LP Tokens represent LP Tokens that have been placed into a "locked" state by the owner. While in this state:
The liquidity itself cannot be withdrawn from the SWP-Pair.
Transfers of the Sleeping LP may remain enabled, depending on the owner’s configuration.
Swaps and pool activity continue normally; only the removal of the LP is blocked.
This creates a trustless method of locking liquidity for fixed or flexible durations, while optionally retaining tradability. This is especially useful for cases where:
LP Tokens are used as collateral.
Secondary rewards systems rate locked liquidity higher than regular LP.
Earning strategies depend on time-locked liquidity metrics.
🔹 Frozen LPs: Immutable, Perpetually Locked Liquidity
Frozen LPs elevate liquidity permanence to a new level:
The original LP Token is sequestered forever within the Vesting Smart Ouronet Account.
A Frozen LP Token is minted and given to the user.
The liquidity becomes permanently inaccessible via LP withdrawal.
Transfers of the Frozen LP Token can remain enabled if configured by the user, allowing the token to participate in additional mechanics (e.g., governance, yield farming, or collateral frameworks).
Frozen LPs function as the ultimate trust primitive, signaling total commitment of liquidity and creating strong guarantees for users, protocols, DAOs, or long-term treasury designs.
🔹 Adding Liquidity with Frozen & Sleeping Tokens
A unique capability of SWP-Pairs on Ouronet is that SWP-Pair owners can enable their pools to accept Frozen or Sleeping variants of standard tokens for liquidity provisioning.
This means:
Users can directly use Frozen Tokens (true fungibles) or Sleeping Tokens (meta-fungibles) to add liquidity to the pool.
The process automatically results in issuance of Frozen LPs or Sleeping LPs, respectively.
The underlying tokens are permanently or ephemerally locked into the pool, based on the mechanism used.
No wrapping, approval chains, or off-chain interactions are required—everything is handled natively and securely on-chain.
💡 This offers a massive upgrade in flexibility for liquidity providers: users can contribute locked or bonded tokens and still receive LP exposure, all while respecting vesting, governance, or staking constraints.
✅ A Complete Liquidity Lifecycle, Made Native
Together, Sleeping and Frozen LP Tokens give liquidity providers unprecedented choice:
Native LP
✅
✅
Standard LP use
Sleeping LP
✅ (if allowed)
❌
Time-locked, flexible strategies
Frozen LP
✅ (if allowed)
❌❌ (permanent)
Immutable commitments, DAOs
No other DeFi platform offers such composable liquidity mechanics, natively integrated into the very asset class of LP Tokens.
In Summary
Ouronet’s SWP-Pairs are not just Liquidity Pools—they’re liquidity ecosystems, purpose-built from the ground up for next-generation DeFi. They move beyond legacy pool models by embedding flexibility, modularity, and trust primitives natively into every layer of the system.
With the ability to support:
Up to 7-token pools, allowing complex and balanced multi-asset liquidity environments,
Principal Token enforcement, to ensure liquidity depth is always grounded in foundational assets like OURO and LKDA,
Native on-chain token pathfinding, powered by a Breadth First Search algorithm that integrates with the LKDA-OURO-WKDA Principal Pool and a DIA oracle, enabling precise KDA-based liquidity valuation for any asset,
Truly asymmetrical liquidity provisioning, supporting any combination of tokens and amounts—without forced swaps or ratio math headaches,
n-1 input swaps, letting users swap multiple tokens directly into a single desired output, unlocking new UX possibilities for complex trades,
Adaptive swap fee strategies, including global enhancements that feed the Liquid Kadena Index automatically,
Custom fee routing to external addresses, DAOs, or reward frameworks via Special Fee Targets,
Trustless issuance models, restricting pool creation to token owners, and enforcing single-instance pair issuance to maintain liquidity integrity,
And most notably, full lifecycle liquidity mechanics through Sleeping LPs and Frozen LPs, giving providers programmable control over liquidity permanence, transferability, and reward visibility—
SWP-Pairs don’t just compete with existing DeFi mechanics—they outclass them by replacing glue-code complexity with native logic.
Every innovation is built to work seamlessly on-chain, without external routing engines or off-chain pricing math. Even the absence of multi-hop swaps is intentional—favouring atomic clarity, gas predictability, and system-wide determinism over opaque, gas-heavy route chaining. In a world where too much logic lives off-chain, Ouronet brings liquidity back to where it belongs: secure, visible, and verifiable—on the ledger itself.
With the integration of Sleeping and Frozen LPs, every liquidity action becomes programmable. Whether you want ephemeral lockups, permanent commitments, or flexible, transferable LP states, the system adapts—natively and securely—to your needs.
This is not just a pool system.
This is liquidity as infrastructure. A foundation for builders. A toolkit for strategists. And a protocol that honors logic, transparency, and control as the future of capital flow coordination.
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