Liquidity Pools

Pools are referenced by an ID number. Pools may fit the following classifications:

• Preferred Pool - This is the main pool managed by DexToro Protocol. This is the pool suggested by default for liquidity providers to participate in. This pool's ID can be retrieved by calling the getPreferredPool function.

• Approved Pools - The DexToro Protocol also specifies approved pools with IDs that can be retrieved with the getApprovedPools function. This is expected to be a series of pools owned by the DexToro Protocol with exposure to different combinations of markets.

• Zero Pool (also referred to as delegating to “no pool”) - A pool exists at ID 0 which backs no markets and never can (because it has no owner). Depositing collateral with this pool is similar to using a decentralized borrowing protocol, where the only functionality is minting and burning DexToro USD dUSD.

• Permissionlessly Created Pools - Anyone will be able to create and configure their own pool.

Any liquidity position delegated to a pool could be indirectly liquidated by the pool's owner. There is always a risk, but be especially cautious when providing liquidity to pools that aren’t approved by the DexToro Protocol.