TiTi Protocol
  • 👋Welcome to TiTi Protocol
  • Overview
    • What is TiTi Protocol
    • What is TiUSD Token
      • What is unique about TiUSD
      • How TiUSD is minted and redeemed
      • How to ensure the stability of TiUSD
      • What are the advantages of TiUSD
    • What is TiTi Token
    • How to earn in TiTi Protocol
    • What is the flywheel of TiTi Protocol (Use-TiUSD-To-Earn)
  • core architecture
    • TiTi-AMMs (M-AMMs)
    • ReOrders
    • Protocol Reserve Value (PRV)
    • Protocol Added Value (PAV)
    • Market Maker Fund (MMF)
    • Multi-Asset-Reserve
  • TiTI Tokenomics
    • Token Distribution
    • Protocol Fee
    • TiTi Incentive
      • TiUSD-X Token Liquidity Provider
      • Dual-Mining participating MMF
      • Use TiUSD to earn TiTi rewards
        • Buy TiUSD in TiTi-AMMs
        • Buy TiTi in Other DEX
        • Hold TiUSD
    • TiTi Staking
    • Reward Epoch History
  • Product Guides
    • Swap TiUSD in TiTi-AMMs
    • Join Market Maker Fund (MMF)
    • Join TiUSD-XToken LP Staking Pool
    • Use TiUSD to earn TiTi Rewards
      • Buy TiUSD to get TiTi Token Rewards
      • Buy TiTi to get TiTi Token Rewards
      • Hold TiUSD to get TiTi Token rewards
    • Join TiTi Staking Pool
    • Video Guides
  • TiTi Wikipedia
    • Core Terms
    • Core Protocol Parameters
    • Roadmap
    • TiTi Protocol Secures $3.5 Million
    • FAQs
  • Useful Links
    • TiTi Branding Resource
    • Contract Addresses
    • Audit Reports
    • Social Links
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  1. core architecture

Market Maker Fund (MMF)

PreviousProtocol Added Value (PAV)NextMulti-Asset-Reserve

Last updated 1 year ago

Through the analysis above, the allocation of PAV is of great significance. Drawing lessons from many successful DEFI products, instead of locking all the PAV to prevent risks, it is reasonable to utmost limited funds for unlimited funds to maximize TiUSD users' interest. Therefore, in order to enhance protocol risk-proof ability and further reduce trading slippage, TiUSD Market Maker Fund mechanism (herein after referred to as MMF) is created. MMF will raise more market-making funds by incentive Market Maker with PAV.

For one thing, compared with the LP mining model, MMF participants do not need to bear the risk of Impermanent Loss by holding a certain token. Impermanent Loss will reduce their participation willingness. In terms of use of funds, MMF is more similar to traditional market makers issuing funds to raise money. Furthermore, MMF is free of punishment and users can choose to participate or exit from the MMF at any time. MMF will automatically divide profits according to the proportion of individual funds.

Besides, in the process of marketing make, the profit generated by the user is raised immediately. All the users' funds will enter the TiTi-AMM and be used for market-making in TiTi Protocol. Again, the maximum slippage caused by the Protocol:

The USDC balance X in the TiTi-AMM pool is:

It indicates that the USDC in the market-making pool will consist of two parts. One part is PRV, X_{reserve}. The other part is the Market Maker Fund, X_{mmf}. MMF increases the depth of the TiTi-AMM, reduces transaction slippage and further improves user experience. For MMF participants, it is a risk-free investment subject. TiTi holders, MMF participants, and the protocol itself can achieve a win-win situation.

MMF: Single Asset Yield Farming