Katana’s Innovation Zone is LIVE!
Seed Tags, New Liquidity Pool Features, and More
Key Points
Phase 2 of Katana’s revamp is complete! The Ronin Innovation Zone is LIVE, which means Ronin tokens now come with Main Tags or Seed Tags. Main Tags identify more established tokens while Seed Tags identify tokens with higher volatility, lower liquidity, or a more experimental nature.
Anyone can now create a new liquidity pool with most tokens on Katana! Imagine a PIXEL/AXS pool, or an APRS/USDC pool! Follow our guide below to learn how to create a liquidity pool with two or more tokens now.
On May 21st, Apeiron will launch its ANIMA token on Katana. ANIMA will come with a Seed Tag, and users will be able to create ANIMA liquidity pools once the whitelisting period is over. More details below.
Today, we took two important steps towards a more open Ronin. First, Katana’s new Innovation Zone went LIVE, which sent a firm salute to third-party builders in our ecosystem. Second, Katana’s support for user-created liquidity pools opens the door to more economic freedom on Ronin. After reading this article, you’ll be better prepared to dive into the Innovation Zone and swim through Katana’s new liquidity pools. These features come with some risk, so we recommend only executing transactions you understand. Here’s what’s new:
Introducing the Innovation Zone and Seed Tags
In April, we revealed our vision for an Innovation Zone on Ronin – a designated area that provides users with a safer space to access newer, more volatile tokens. The Innovation Zone is now LIVE! That means you can now find tokens labeled with Main and Seed Tags.
Main Tags identify more established tokens while Seed Tags identify tokens with higher volatility, lower liquidity, or a more experimental nature. For example, RON and WETH have Main Tags while Apeiron’s soon-to-be-launched ANIMA will come with a Seed Tag. As a token gains more traction, Sky Mavis will consider assigning it a Main Tag.
Remember that all tokens can experience volatility regardless of their tags.
The Innovation Zone also gives Ronin builders and users the opportunity to create new liquidity pools with two or more tokens. During an initial whitelisting period, only a token’s builder can launch a liquidity pool. After the whitelisting period, anyone can create their own liquidity pools using that token. This means our partners and their communities can bootstrap liquidity for their tokens – like we did with RON in 2022. Here’s how it works:
How to Create a Liquidity Pool on Katana
Over the past couple of years, Katana liquidity pools have been set up and managed by Sky Mavis. This brought a measure of stability to Ronin tokens at the expense of variety. For example, third-party tokens’ have only been paired with RON. Starting today, Katana will support all kinds of liquidity pools created by anyone from Ronin partners to builders and users. Imagine a PIXEL/AXS pool, or an APRS/USDC pool! You can even receive more than one reward token from a single pool. Here’s how you can set up a pool and earn rewards:
Step 1: Go to Katana and connect your Ronin Wallet
Step 2: Select “Liquidity Pools, then click ”Create New Pool”
Step 3: Click “Create new pool”
Step 4: Enter the tokens you’d like to use and the amounts
Step 5: Review your pool and click “Create pool & supply” when you’re ready
If you’re looking for a more detailed guide on liquidity pool creation, check out our Ronin Docs here.
Note on Impermanent Loss: Providing liquidity involves risks including impermanent loss, especially if asset prices change significantly. We encourage you to assess your risk tolerance before participating.
Final Thoughts
Step by step, Ronin is opening up. Katana’s new liquidity pool support and the Innovation Zone’s Seed Tags have now laid the foundation for more economic freedom in our movement. In 2022, our network supported a single game and used Proof of Authority, a centralized consensus mechanism. Today, there are many games and tokens on Ronin, our upgrade to Delegated Proof of Stake (DPoS) further decentralized our network, and we’re working towards enabling third-party zkEVM rollups soon. This is what progressive decentralization looks like – and this is our destiny. Let’s keep pushing.