The RUBY token is integral to Ruby.Exchange, and has a number of different uses within the platform.
- Primary reward token for liquidity providers (though other tokens can be added for dual rewards).
- Currency for AMM fees, including trading commission fees, and fees for DCA orders.
- Default payment token for gemstone NFT raffles.
- Ultimately RUBY will be the governance token for the Ruby DAO.
There's another important use case for the RUBY token: Creating new liquidity pools.
Creating Liquidity Pools For New Tokens
Popular tokens like ETH, BTC and others already have liquidity pools created for them on Ruby. However, as the primary venue for trading tokens across the SKALEVERSE, Ruby needs to support the creation of new pools for any token that might be added to Metaport (SKALE's interchain widget) in the future.
As the SKALEVERSE grows, it's vital that this can be done in a straightforward and ideally trustless way, while at the same time avoiding the problems of spam tokens, which are distracting for users and might be used for P&D scams.
Anyone can create a new liquidity pool, so long as they have locked (not just staked) at least 100,000 RUBY tokens. This ensures that there is an upfront cost to deter arbitrary or malicious pool creation, but that legitimate projects are not unduly punished by a high fee, since the tokens can be unlocked after three months.
You will be shown the option to create a new pool if you try to add liquidity to a pool that does not yet exist. If you do not have sufficient RUBY locked to do this, a warning will be displayed.
Assuming you have 100,000 RUBY locked, you will be able to add liquidity in the same way that you would for any other pool. The new pool will be created when you submit your transaction. It's that easy!