👨‍🍳How to create a brc-20 Liquidity Pool

Revolutionizing DeFi Liquidity Pools with $LPV1, $OSHI, and Indexers

• $LPV1 is the brc-20 token used & distributed as accountancy / smart contract. It allow the tracking of people adding/removing liquidity to the pool, it also redistribitutes the fees to the token holders.

• A BRC-20 Pair of inscriptions that you own, are transferable and poolable.

• $Oshi is the DAO LP Governance token, It has a unique structure allowing liquidity pool creation. You will need it to influence & govern the project.

• Indexers.

Role of indexers

Meta-protocols living on top of the bitcoin blockspace like BRC-20, can only work out if everyone agrees on how we proceed specific datasets published as ordinals.

An indexer is a public repository of specification/script that allows us to verify any virtual type of data structures

In our case, we implement a ledger of $LPV1 brc-20 tokens

What are Meta Protocols?

Meta-protocols are like the superheroes of the blockchain world, seamlessly connecting various DeFi platforms and allowing users to access a wider range of features and services. By leveraging the capabilities of meta-protocols, you can maximize your DeFi experience and take advantage of the full potential of the blockchain. So put on your cyber-gear and get ready to explore the limitless possibilities of meta-protocols in the world of DeFi!

1 - Create transferable brc-20 pair

Initiate the pair by creating 2 brc-20 inscriptions that you own. (RTFM if you don't know how, or use a paid service provider), in our experiment we use $Ordi & $Oshi

Create transferable brc-20 pair

Structure example of token A, a transferable brc-20 $ordi

{
  "p": "brc-20",
  "op": "transfer", 
  "tick": "ordi",
  "amt": "100",
  "pool": "1"
}

Structure example of token B, a transferable brc-20 $oshi

{
  "p": "brc-20",
  "op": "transfer", 
  "tick": "oshi",
  "amt": "100",
  "pool": "1"
}

Key	Required	Description
p	Yes	Protocol: Helps other systems identify and process brc-20 events
op	Yes	Operation: Type of event (Deploy, Mint, Transfer)
tick	Yes	Ticker: 4 letter identifier of the brc-20
amt	Yes	Quantity that you allow to be transferable and pooled.
pool	Yes	Allow the token to be locked in a pool

2 - Create a pool using $LPV1

The concept behind a liquidity pool is to enable individuals to contribute token A and receive token B by pooling token A and B at a certain ratio.

Create a pool using $LPV1

$LPV1 is the brc-20 token that is used and distributed as an accounting mechanism and smart contract for liquidity pools. It represents a share of the liquidity pool and is used to track each user's contribution to the pool. By holding $LPV1 tokens, users are entitled to a portion of the trading fees generated by the liquidity pool, incentivizing them to provide liquidity to the pool.

The use of $LPV1 tokens as an accounting mechanism and smart contract for liquidity pools is a significant development in the world of decentralized finance on bitcoin. It provides a transparent and efficient way to manage liquidity pools and enables users to participate in the growth of the DeFi ecosystem.

Create the $LPV1 JSON liquidity pool inscription (RTFM if you don't know how, or use a paid service provider)

{ 
    "p": "brc-20",
    "op": "deploy",
    "tick": "LPV1",
    "max": "100",
    "pid1": "b61b0172d95e266c18aea0c624db987e971a5d6d4ebc2aaed85da4642d635735i0",
    "pid2": "940e8a6ec3943962c55fdd84809f3d878c6990da123cd3d02ae4769d3d86f3a6i0",
    "amt1": "1",
    "amt2": "1",
    "to": "1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa",
    "fees": "0.003"
}

Key	Required	Description
p	Yes	Protocol: Helps other systems identify and process brc-20 events
op	Yes	Operation: Type of event ( Deploy, Mint, Transfer)
tick	Yes	Ticker: 4 letter identifier of the brc-20
pid1	Yes	Deploy hash number of the of the 1st token to add in the pool (here it's : $Ordi)
pid2	Yes	Deploy hash number of the of the 2nd token to add in the pool (here it's : $Oshi)
amt1	Yes	Quantity of 1st token that you allow to be transferrable as referenced earlier (here for $Ordi)
amt2	Yes	Quantity of 2nd token that you allow to be transferable as referenced earlier (here for $Oshi)
to	Yes	Adress of the deployer
fees	Yes	Pool fees by TX distributed to the LPV1 holders

3 - Inscribe OP Mint $LPV1

Once the inscription pool is deployed, we need to inscribe the synthetic assets (here $LPV1 that represents the ratio of the pool to create the inscription (RTFM if you don't know how, or use a paid service provider)

Mint the $LPV1

{
    "p": "brc-20",
    "op": "mint",
    "tick": "LPV1",
    "amt": "100"
}

Key	Required	Description
p	Yes	Protocol: Helps other systems identify and process brc-20 events
op	Yes	Operation: Type of event (Deploy, Mint, Transfer)
tick	Yes	Ticker: 4 letter identifier of the brc-20 LPV1 Token
amt	Yes	Quantity of the ownership of the pool expressed in %