Pool Parameters

The isolated pool model is a unique approach to managing and organising collections or markets. This model entails that each pool acts as its own distinct entity, with its own set of unique properties and characteristics.

Pool Name

One of the notable features of this model is the fact that each pool has a unique name, which serves to distinguish it from other pools and to identify it as a distinct entity.

This name can be based on a variety of factors, such as the DAO sponsoring the pool, the community of users the pool is serving, or simply the assets contained within it. Overall, the unique name of a pool is a crucial aspect of the isolated pool model, and is an important way to differentiate one pool from another.

Liquidation incentive

Each pool need to be maintained solvent. This is done primarily by ensuring that unhealthy positions are liquidated in a timely manner, which requires not only available on-chain liquidity for such liquidations to take place, but also incentives for such liquidations to take place. In a decentralised system, liquidators will compete to perform these liquidations, both ensuring protocol solvency and earning rewards for performing these liquidations.

Usually, a liquidation of at least 8% is advisable.

Pool ownership

Once the pool has been created by us, and its base structure is setup, we offer partners the ability to retain ownership of the pool. This might be a requirement for certain DAOs and governance structures, as it would allow full control over the pool parameter setting, as well as the ability to perform upgrades to the contracts.

We also understand that partners prefer to leave the pool ownership to Midas, as managing a pool can be a burden a partner might not be interested in having.