Risks associated with providing liquidity to Rubicon Pools

Risk Disclosure

Using Rubicon Pools has a certain degree of risk. You could lose some or all of your funds. Please yield farm with caution. This is a novel money lego and an early version of Pools (v1).
Rubicon Pools is a novel liquidity mechanism that democratizes the liquidity landscape of an open order book exchange. In practice, it is a series of smart contracts which enable passive liquidity providers (LPs) to deposit their asset(s) into a liquidity pool, where assets in the pool are then used by active traders (strategists) to make markets on the Rubicon exchange. The strategists and LPs share the yield generated by the market-making activities. Importantly, there is no guarantee that providing liquidity to Rubicon Pools is profitable, and liquidity providers could lose some or all of their assets. Providing liquidity to Rubicon Pools carries with it general smart contract risk and liquidity management risk. We encourage users to inspect the Rubicon Pools smart contracts for themselves before providing liquidity. These contracts can be found here. By interacting with Rubicon Pools, you accept and acknowledge our terms of use.
Our goal is for Rubicon to be a radically democratic marketplace, with every aspect of the system being completely permissionless. In the early days, our core team is taking steps to ensure the security of our protocol and test the mechanism in production. One of these steps will be keeping the strategist role permissioned; in the beginning, our team will be acting as strategists. We will incrementally open up the strategist role to other parties at our discretion, as our priority is the long-term health and security of the system. Our team will make the strategist role permissionless when we are fully confident that assets in the liquidity pools are not at risk in the presence of a hostile strategist.
Last modified 2mo ago
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