Embedded Liquidity Pools (ELPs)

The Bar is built into every single liquidity pool that is on our dApp. It sits inside any trading pairs liquidity pool as an Embedded Liquidity Pool (ELP). These ELPs’ collect the 0.1% that has been generated from every swap, and perform a transaction which sends these fees towards the Bar upon executing the ‘Serve’ operation.

The fees collected in the ELPs’ are in both currencies. Upon creation of any trading pair that isn’t linked to ADA, the creator determines which token will be the Principal Token (PT) of the liquidity pool. Upon execution of the ‘Serve’ operation, the ELP will convert all fee’s into the PT, and send these fee’s forward to the closest ADA linked pair.