Omnipool

Most current liquidity pools exist as networks of smaller paired-asset pools; XYK model, or x*y=k (as Vitalik Buterin initially proposed). Gauss will evolve to use a single multi-asset liquidity pool, or omnipool. An omnipool acts as a shared liquidity ocean – a galaxy of liquidity. This removes the need to have paired assets, so transactions can be made more easily. In many ways, the XYK model is better than the bid/ ask (ledger book) system traditionally used to exchange assets. However, it leads to highly fragmented liquidity. This creates shallow liquidity pools, which can cause outsized price impact from asset swaps. An omnipool solution will provide deep liquidity value across the Gauss Ecosystem. It will also improve swaps between tokens in the omnipool and add to the overall stability of Gauss. Because it is a curated ecosystem, Gauss is able to prevent toxic assets from being launched and dumped into the pool, thus maintaining liquidity. HydraDX and Token Engineering have already done a great deal of work on omnipools. We look forward to testing, iterating from, and building upon this work. We would encourage anyone interested in this concept to delve deeper into their articles and videos.