Catalyst Explained
Here is a high level overview of how Catalyst protocol will be initially launched and will work

Launching Catalyst's Protocol

Phase 1: Token Distribution and 1st Governance Vote

When the protocol is launched, the entire process begins with the Lyst token, and tokens will be initially distributed to the Team/Investors/Community. These tokens will be critical to the governance vote that will need to occur for the first cAsset to be launched.
  1. 1.
    Lyst tokens will be distributed to Team/Investors/Community
  2. 2.
    Lyst holders will create LP tokens by adding 50% Lyst/50% Matic in QuickSwap
  3. 3.
    Participants will add Lyst/Matic LP tokens to the corresponding Catalyst Liquidity Farm
  4. 4.
    Liquidity providers will begin to earn rewards
  5. 5.
    Lyst tokens must be added to the Lyst Pool to participate in governance
  6. 6.
    The Catalyst team will submit a proposal for the first Lyst index to be created and the community will vote
  7. 7.
    Once a vote is passed the Timelock will be initiated and the proposal will push to the protocol

Phase 2: Minting/Burning Lysts

Once the first cAsset is approved. The minting/burning of Lysts will begin allowing them to maintain a certain value.
  1. 1.
    Collateral will be deposited in the form of Matic to the protocol
  2. 2.
    150% collateralization ratio will be implemented
  3. 3.
    Locked Collateral will be sent to Aave to earn interest, and to back Lysts
  4. 4.
    Interest collected from Aave will be used to burn lyst tokens
  5. 5.
    Arbitrageurs will mint/burn cAssets to maintain the price

Phase 3: Providing liquidity to cAssets

In order for cAssets to be tradable, they must have the liquidity that will allow others to buy/sell them. Liquidity providers will have to make LP tokens.
Catalyst will launch with the following Liquidity Pools:
$MATIC<>$LYST 218 LYST/block
$LYST 73 LYST/block
Last modified 7mo ago