A Note on Permissionless Platforms
xToken 2.0 is a permissionless platform. Anyone, anywhere can sponsor a pool. And anyone, anywhere can provide liquidity. xToken does not have custody or access to any user liquidity or token rewards. This is the beauty of DeFi.
However, there are quite a few challenges that come with building a permissionless platform. Because Terminal is open to anyone, xToken does not and cannot endorse any pool on the platform. While liquidity providers can take solace in knowing that all Terminal pools use the same audited and validated code (i.e., sponsors can't inject any malicious code), LPs are implored to do independent research on the pool's constituent tokens. All participants should read LP Risks before contributing liquidity.
Last modified 1yr ago