👨‍💻 Product Overview from the User Perspective

Users will be able to create liquidity positions providing a single asset or LP position.

This will enable new interesting strategies such as shorting Token A while holding it and generating swap fees without risking Token B (e.g. USDC or wMETIS) or leveraging the position . As the omnipool will be composed of multiple tokens, tPUMP will start behaving as a general PnL of the ecosystem in terms of prices and in terms of users positions.

It is expected for the USDC tail to reflect this, as no individual tail will be able to mint more liquidity than the available in the wMETIS / tPUMP pool.

Use cases and user flow

On it's first stage, Pumpkin will be built on top of HerculesDEX, which at it's inception will launch several liquid V3 pools.

For practical purposes we will be using wMETIS-mUSDC as the most highly-liquid pool of Hercules ecosystem. In that sense, every unique user that provides liquidity to the wMETIS-mUSDC LP will obtain an spNFT.

That particular spNFT could be used for creating a collateralized-debt position (CDP) into Pumpkin Protocol, which automatically will mint tPUMP, the synthetic asset of the omnipool.

The loan-to-value (LTV) available for minting will be determined by the underlying asset itself. As a general rule, tPUMP will be minted with 50% of the less volatile collateral value of the LP position. For instance, for wMETIS-m.USDC LP, the collateral of preference will be m.USDC. As mentioned

Despite tPUMP not having any intrinsic value other than all the underlying assets of the protocol, we expect to see new and creative ways of using it due to its highly liquid nature.

PUMP Stakers

PUMP holders will be able to stake their tokens and benefit from protocol revenue distribution.

Every time a user closes a position and withdraws any asset half of the swap fees go to the liquidity provider and half are distributed as follows:

• 50% is used to tPUMP which then burned (taken out of circulation)

• 50% is used to buy $PUMP

This $PUMP is then distributed among all $PUMP stakers proportionally to their share of total staked $PUMP.