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TCP incentivizes liquidity in Uniswap V3 pools. It does so because Uniswap V3 is highly capital efficient when compared to Uniswap V2. In Uniswap V3 users can provide liquidity only on a narrow range, as opposed to along the entire spectrum of possible prices like in Uniswap V2. This means that at the same amount of real value can be focused to offer many times it's value in liquidity depth, providing maximum liquidity for pairs that are important to TCP.
Test out the logic here! https://rinkeby-tcp.on.fleek.co/
In order to ensure that the Trustless Currency Protocol has sufficient liquidity to operate properly, the protocol incentivizes Uniswap V3 pool liquidity with TCP tokens. For the first year of protocol operation the community can decide which pools should be incentivized, and balance the TCP Reward incentive between the pools.
At protocol launch two pools are incentivized:
Hue:Eth, which is essential for proper operation of the protocol by ensuring that Hue positions are properly collateralized relative to Eth, and for checking the value of Hue relative to the peg.
Hue:TCP: which ensures that anyone is able to participate in the TCP community by acquiring TCP tokens.
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Uniswap V3 Liquidity (this page)