Ocean Market Staking Guide

Introduction

This is not financial advise. This guide should only be used as a tool to understand the mechanics of staking in the Ocean Market. Please be aware of all risks before investing in any market. Don’t guess with your money.
  • First we will have a quick look at what the Ocean Market is about.
  • Then we will go through how you can become a liquidity provider.
  • Finally we will discuss the strategy of investing in Datatokens.

The Ocean Market:

Is a place where publishers can put their data for sale.

Is a place where buyers can purchase datasets.

Is a place where investors can speculate on data.

What is staking or liquidity providing, and how can it help to price data ?

Source: collinsdictionary.com

Why a publisher will choose AMM for price discovery ?

  • A publisher might not know the value of his dataset, and might want to use a pool as a way of signalling.
  • The dataset might have a dynamic price because of added data over time.

The price will be dynamic and affected by the investors.

The pools of the Ocean Market are designed on the Balancer model, customized to accept 2 types of tokens: Ocean Tokens and Datatokens. The ratio for new pools created on the Ocean Market is 70% Ocean / 30% DTs. The publisher sets up the pool and decides on the amount of DTs he wants to mint via the Ocean Market UI. The amount of Ocean Tokens and DTs he then puts in the pool, will dictate the starting price of the dataset.

Example:

So far the pool liquidity would look like this:

  • Bob‘s liquidity: 730 Ocean Tokens and 90 DTs
  • Alice’s liquidity: 70 Ocean Tokens and 10 DTs
  • Pool’s Liquidity: 800 Ocean and 100 DTs.
  • Total Value = 1143 Ocean Tokens.

The strategy of swapping Datatokens

The pool would now look like this:

  • Bob’s liquidity: 821.25 Ocean and 63,4 Datatokens
  • Alice’s liquidity: 78.75 Ocean and 7.45 Datatokens
  • Pool’s liquidity: 900 Ocean and 70.85 Datatokens
  • Total value = 1286 Ocean Tokens

Conclusion

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Agent K

Crypto enthusiast, interested in disruptive technology. Currently helping EnergyWeb Doge with their goal of making Dogecoin Carbon-Neutral.