# Tokan Exchange Tokan is a DEX and Liquidity Layer driven by the community and centered around the ecosystem. Built on the Scroll network, Tokan serves as the exchange layer and addresses liquidity issues at the protocol level within the network. The protocol is entirely open-source and modular, eliminating obstacles to integration and fostering adoption of the Scroll ecosystem. ### What we aim to achieve * To provide the Scroll ecosystem with a sustainable decentralized exchange. Allowing traders to leverage low cost swaps, Liquidity Providers to earn a sustainable consistent yield and for protocols to efficiently build and maintain liquidity for their tokens. * To support new protocols launching on Scroll whilst providing the tools to enable them to bootstrap liquidity and sustain their growth. * To achieve and sustain long-term, productive growth that is beneficial to the Tokan and Scroll ecosystems. * To provide a sustainable yield to TKN lockers and Liquidity Providers - creating innovative emissions strategies that leverage more sustainable tokenomics, aligning the incentives of builders, users and the exchange, all at once. * To provide a cost-effective solution to the pool-2 liquidity problem for protocols. By building a veTKN position and incentivizing veTKN holders to vote for their pool, protocols can build up liquidity for their protocol without sending their token into hyper-inflation.
# Strategic Partnership Tokan Exchange will maintain an ongoing mutually beneficial partnership with Essence Finance. Essence Finance will allocate a large majority of their governance token emissions towards incentives on Tokan Exchange. In return they will receive a veTKN allocation at launch as well as Tokan Exchange making CHI (Essence Finance's fully collateralized stablecoin) the base for pairs, i.e. most Bluechip tokens will be paired with CHI. This dynamic allows mutually beneficial growth for both protocols. The solidly-style dex was originally built around protocols and to be successful it needs a steady stream of rewards for veNFT holders. Essence Finance has allocated a large portion of their governance token for incentivizing on Tokan, which gives Tokan Exchange a cushion of safety. Lack of consistent rewards has been the main reason for the many downfalls in the storied history of solidly-style dex's.\ \ Harmony between our main partner protocol means Tokan will be able to maintain stability and sustainability, crucial aspects in the initial stages of a solidly-style dex. # Wallet Setup To use the Tokan Exchange, you will need an external wallet such as [MetaMask, ](https://metamask.io/)that is compatible with the Scroll Layer 2 network. When setting up your wallet, make sure to download the latest version from an official source and follow the instructions carefully. It is also important to safely backup your recovery phrases and never share them with anyone. **Never enter your recovery phrases into any website or app other than your wallet.** The following instructions will guide you through the process of setting up a MetaMask wallet in your web browser: 1. To install MetaMask, go to the MetaMask website and click "Install MetaMask". You can install the wallet on various browsers and on devices that support iOS or Android. 2. Click "Add to browser" in the top right corner and "Add Extension" to finish the installation. You will know MetaMask has been installed when you see the fox logo in the top right corner of your browser. 3. To use MetaMask, you must first create a wallet to hold your cryptocurrencies. Click on the MetaMask logo in the top right corner and agree to the terms and conditions. Enter a password and click "Create" to create your wallet. A list of 12 "seed words" will appear, which you should save as a file and store in a secure location. Never share your private key or seed phrase with anyone, as this will give them access to your wallet. 4. If you forget your password or lose your device, your seed phrase is the only option of recovering your wallet, therefore, it is recommended that you write your seed phrase on a piece of paper and make multiple copies for safekeeping. 5. After storing your seed words file, click "I've Copied It Somewhere Safe". By default, your MetaMask wallet will be set to the Ethereum mainnet network. To use Tokan Exchange, you need to switch to the Scroll network by clicking on your current chain at the top of your wallet and selecting "Add network" at the bottom of the list. Then, enter the required information. {% hint style="info" %} Scroll RPC: * Network Name : Scroll * RPC URL : * Chain ID : 534352 * Currency Symbol : `ETH` * Block Explorer URL : {% endhint %} **You can also add the Scroll Network to your Wallet using** [**Chainlist.org**](https://chainlist.org/chain/534352)**. All you have to do is to connect your wallet to Chainlist, and then click on "Add to Metamask"** # Guides # Swap Tokens 1. Head to the [Swap ](https://app.tokan.exchange/swap)page on the [dApp](https://app.tokan.exchange/swap). 2. Use the Connect Wallet button in the top right to connect your wallet\ (If you do not have an existing wallet, then refer to this [guide](/getting-started/wallet-setup)) 3. You can then swap tokens by following these steps: 1. Click the "from" tab to select the token you want to swap from 2. Click the "to" tab to select the token you want to swap to 3. Enter the amount you want to swap in the "from" input box If it's your first time transacting a token, your wallet will ask for approval before proceeding.
4. Click on **Swap** 5. Once the pop up appears, confirm the details are correct and click on **Swap**
# Adding Liquidity Adding Liquidity and Staking 1. Head to the [Liquidity ](https://app.tokan.exchange/liquidity)page on the [dApp](https://app.tokan.exchange/swap). 2. Use the Connect Wallet button in the top right to connect your wallet\ (If you do not have an existing wallet, then refer to this [guide](/getting-started/wallet-setup))
3. Click the Manage Liquidity button 1. Click the "Token 1" tab to select a token 2. Click the "Token 2" tab to select another token 3. Enter the amount you want to add in the "Token 1" input box 4. The Token 2 amount will be automatically calculated If it's your first time transacting a token, your wallet will ask for approval before proceeding. 4. Click on **Add Liquidity & Stake** **There will be at least two transactions to confirm. One to add liquidity and another to stake it.** # Creating a Lock Creating a New Lock 1. Head to the [Lock ](https://app.tokan.exchange/lock)page on the [dApp](https://app.tokan.exchange/swap). 2. Use the Connect Wallet button in the top right to connect your wallet\ (If you do not have an existing wallet, then refer to this [guide](/getting-started/wallet-setup))
3. Click the "Create Lock" button 4. Enter the amount of TKN you wish to lock and then set the date you wish to lock till, with the maximum lock period being 4 years. If it's your first time transacting TKN, your wallet will ask for approval before proceeding. 5. Click the "Create Lock" button once you wish to proceed. # Providing Liquidity Tokan Exchange enables users to generate earnings via liquidity provision. By contributing liquidity to the incentivized gauges, individuals can secure a portion of the rewards designated for those gauges, proportional to the volume of liquidity they have contributed. ### Rewards Liquidity Providers **do not** receive swap fees. Their returns come from the `TKN` emissions allocated to the gauge they are staked in. All swap fees are distributed to the veTKN holders that voted for the corresponding gauge; this leads to the pool generating more swap fees meaning a higher return for veTKN holders. This also ensures that votes are allocated to productive pools which maintains the long-term sustainability of Tokan Exchange. {% content-ref url="/spaces/bK251YUJy7FYDOFDkvYz/pages/sO2ZtcVNAkKgG7kzjoDF" %} [Adding Liquidity](/getting-started/guides/adding-liquidity) {% endcontent-ref %} # Pools Tokan Exchange employs two distinct pricing curves: the Uniswap v2 and Curve Stable Swap pricing curves. Curve Stable Swap is better suited for trading price related assets like USDC-USDT, leading to increased trade volume and reduced slippage. {% hint style="success" %} All pools will support a wide range of fees (up to 1%) customizable on a pool by pool basis. This will allow for more dynamic and substantial voting rewards. {% endhint %} ### Stable Pools Stable pools are intended for assets that do not fluctuate in price too much. They are perfect for stable pairs, allowing traders to trade with low slippage and at the best rates even with large trade volumes. The default stable fee is 0.04%. {% hint style="info" %} **`x³y + y³x ≥ k`** {% endhint %} ### Variable pools Variable pools are designed for assets with high price volatility. These pools use a generic AMM formula that is generally found in DEXs like Uniswap v2. The default stable fee is 0.18%. {% hint style="info" %} **`x * y ≥ k`** {% endhint %} # Whitelisting Although Tokan supports permissionless liquidity pool and gauge creation, these can only include whitelisted tokens. New protocols and existing protocols can always request additional tokens to be listed. Tokan Exchange will work towards employing a permissionless on-chain voting process, allowing veTKN holders to vote on which tokens will be added to the Tokan Exchange. This process would also work in reverse to remove any tokens which are abusing the ve(3,3) mechanics. # Voting and Incentives {% hint style="danger" %} Providing incentives is usually done by protocols. Providing an incentive means you will not be able to withdraw it. If you want to earn incentives you must lock TKN into veTKN and cast votes for the pool(s) you wish to earn the incentive(s) from.\ \ If you are unsure please ask in the Discord before proceeding. {% endhint %} `veTKN` holders can decide on which liquidity pools receive emissions in a given epoch by voting on their preferred liquidity pool *gauges*. `TKN` emissions are distributed proportionally to the total votes a liquidity pool receives. In return, voters receive 100% of the trading fees and incentives collected through the liquidity pool they vote for. {% hint style="success" %} For most veTKN holders, the main objective would be voting on the pool capable of netting them the highest return. {% endhint %} ### Gauge Voting Each epoch lasts for 7 days, after which all incentives and trading fees are distributed as a lump sum to voters. You earn only from the gauges (pools) you have voted for. * Trading fees (from the previous epoch) and incentives are claimable as a lump sum after the Epoch comes to a close from your [Dashboard](https://app.tokan.exchange/dashboard). * **Votes must be made every week**, and will not carry over from the previous epoch. ### Protocol Incentives Protocols aiming to build up liquidity for their tokens may incentivize pools to attract a greater share of veTKN votes. Incentivizing a pool can increase the amount of votes on a gauges pool as: Incentivizing a pool -> More votes -> More TKN emissions to the pools gauge -> More liquidity. ### Claiming Voting Rewards Voting Rewards are claimable after the Epoch has ended (n+1). #### Voting Rewards claim timeline: * A new epoch starts Thursday (00:00 UTC). * Incentives are deposited at any point in the Epoch. * Voters vote for their preferred pools. * Once the epoch ends (every Thursday), users are able to claim voting rewards from the [Dashboard](https://app.tokan.exchange/dashboard). # Initial Tokan Distribution The economic structure of Tokan has been created in such a way as to encourage beneficial behaviour whilst synchronizing the interests of all participants in the ecosystem, adding collective value within the protocol. A range of groups and early contributors will be granted initial veTKN stakes to stimulate their involvement in the Tokan ecosystem.
{% tabs %} {% tab title="Protocol Airdrop" %} ### 30% Protocol Airdrops - Locked 30% of the initial supply will be earmarked for Protocol Airdrops. This allocation will be locked as veTKN and granted to protocols that demonstrate a willingness to participate in the Scroll ecosystem. The amount given to any protocol is variable and will be subject to many factors, including, but not limited to: TVL, community size and the relative scale of the protocol. Another major factor would be the project's alignment with the success of Tokan, as it is critical for protocols to be engaging in activity beneficial to the long-term success of Tokan. {% endtab %} {% tab title="Team" %} ### 20% Team - Locked 20% of the initial supply is allocated to the team (locked as veTKN). This is to ensure that we are able to acquire and sustain the resources needed to develop and improve Tokan Exchange. It is also critical for the team to remain motivated so they can build on and continue to benefit the Tokan Ecosystem. The allocation being locked demonstrates the team's long-term belief and vision in Tokan Exchange. {% endtab %} {% tab title="Community Airdrop" %} ### 18% Community Airdrop - Locked In order for us to expand the Tokan community and build awareness, 9% of the initial TKN supply will be available to claim as an airdrop by eligible recipients as veTKN. The remaining 9% will be reserved to be allocated to future airdrop campaigns.\ \ Eligibility will be dependent on a number of criteria to ensure the veTKN is distributed to the most optimal participants in the DeFi community {% endtab %} {% tab title="Ecosystem" %} ### 12% Ecosystem Grant - Unlocked 12% of the initial supply will be allocated towards supporting the Scroll and Tokan ecosystems. This will allow Tokan to accelerate growth of the Scroll DeFi environment, whilst solidifying Tokan as the central liquidity layer. {% endtab %} {% tab title="Essence Finance" %} ### 10% Essence Finance - Locked Tokan Exchange will maintain an ongoing mutually beneficial partnership with Essence Finance. Essence Finance will allocate a large majority of their governance token emissions towards incentives on Tokan Exchange.\ \ In return, they will receive a 10% of the initial supply as veTKN. {% endtab %} {% tab title="Liquidity" %} ### 6% Liquidity 4% of the initial supply will be paired with CHI to establish the initial liquidity, while the remaining 2% will be held in reserve for future additions to the liquidity pool. {% endtab %} {% tab title="Marketing" %} ### 4% Marketing 4% of the initial supply will be reserved for various marketing campaigns to increase and maintain Tokan's brand awareness. This may include additional airdrops or funding marketing campaigns. {% endtab %} {% endtabs %} # Emission Schedule ### **Emissions Specifications** * Weekly emissions (at inception): 40,000,000 TKN * Weekly emissions decay: 1% * Weekly developer wallet allocation: 3.5% ### Emission Schedule The `TKN` supply does not have a maximum limit, but emissions decay by 1% each epoch. All `TKN` emissions are directed to pools as LP rewards by `veTKN` holders and in return they will receive incentives and trading fees generated by the pool.
# Lock ## Understanding and Using veTKN * `veTKN` is the center piece of the Tokan Exchange. In exchanging for locking their`TKN`, users receive `veTKN`, allowing them to vote for gauges, receiving 100% of the trading fees and 100% of the incentives for the associated pool. * In the future, `veTKN` holders will also be able to partake in governance and cast votes for protocol improvement proposals. ### Changes **The Transfer ability has been removed for veTKN holders; meaning veTKN cannot be transferred to another account.** This has been implemented to increase the stability and sustainability of Tokan. veNFT sales contribute towards the death spiral faced by many previous attempts at the solidly model. In essence, veTKN will function similar to veCRV from Curve Finance, with the added ability to have multiple locks, and being able to merge and split existing locks. ### veTKN Voters Receive * Trading fees generated by the pool(s) they vote for * Incentives deposited for the pool(s) they vote for * Weekly `veTKN` rebase ### veTKN Specifications * ve(3,3) Mechanics: The Olympus DAO anti-dilution method is combined with Curve's vote-escrowed model in the Solidly-initiated ve(3,3) Mechanics concept. This mechanism safeguards `veTKN` holders from dilution and enables a dynamic distribution of `veTKN` among participants over time. * Gauge: A contract that dynamically rewards `TKN` emissions based on `veTKN` weight each epoch, to the corresponding pool. * Incentives: Custom amount of tokens paid by a third party on a gauge to `veTKN` holders in exchange for their votes. * Max Lock: 4 years. The longer the lock, the greater the voting power; meaning more rewards. ### Voting * To vote, it is important to be aware of epochs. Each epoch lasts for 7 days, after which the incentives and trading fees are distributed. * You earn only from the gauges (pools) you have voted for. * Trading fees and incentives are claimable as a lump sum after the epoch has ended. * You can change or reset your vote at any time. * **Remember:** You must vote in each epoch to earn weekly rewards. By participating in `veTKN` voting and governance, holders have the opportunity to earn trading fees, incentives, and weekly distributions. # Community Airdrop 18% of the Initial Supply is allocated towards a community airdrop. Half the airdrop allocation will be will be distributed between active participants in the Defi ecosystem. A major focus of this airdrop is to encourage more users from Ethereum to onboard to layer 2, as well as targeting participants that will have a net-positive influence on the long term success of Tokan Exchange. The Airdrop will be available to claim for 2 weeks after which the unclaimed tokens will be burnt. The remaining half will be reserved for allocation to future airdrop campaigns. ### Convex Liquidity Providers * 30% of the community airdrop will be available to be claimed by the top 500 Convex Liquidity Providers on Ethereum. * Known protocol wallets have been removed from airdrop list to focus on individuals. ### Vote Locked Convex Holders * 30% of the community airdrop will be available to be claimed by the top 1000 vlCVX holders. * Known protocol wallets have been removed from airdrop list to focus on individuals. ### Vote Escrowed Curve Holders * 30% of the community airdrop will be available to be claimed by the top 1000 veCRV holders. * Known protocol wallets have been removed from airdrop list to focus on individuals. ### Essence Finance * 10% of the community airdrop will be available to be claimed by CHI Liquidity Providers. * Known protocol wallets have been removed from airdrop list to focus on individuals. # Contracts
Contract NameAddress
Tokan0x1a2fCB585b327fAdec91f55D45829472B15f17a4
Router0xA663c287b2f374878C07B7ac55C1BC927669425a
VotingEscrow0xc91D42e81586E493DAF46E7ce279fdD7de334639
veArtProxy0x2E0E4b3921ECBBAe89B5Dd4A9eB1ff22Cd4B8F1E
RewardDistributorV20x14299DB61e8de091fb1CdA9395bd9457528075e6
PairFactory0x92aF10c685D2CF4CD845388C5f45aC5dc97C5024
BribeFactory0x7c12a6d10D38a623140Dfc41f91e3A20a4b7e1de
GaugeFactory0x528e406D22F6BAC1Bb69C7F8aAEF41Ab59ed28db
Minter0xc80B6FFd5B332CCC93620eBd187Ef56A1d3c9280
Voter0x60c4BFBc017Fc720AF6e1084b4ff94753E24F0DC
PairAPI0xCDC8b03a1a8318d7b78d5D6349B4435b251f8853
RewardAPI0x71E08CEfa90174A7Ad1A04Fd381D4f5F038DAAe1
veNFTAPI0x33A162Ab0AD9b20515876fb7D64448426cE36df1
Airdrop0xd26a204A8D01ab658Dbd1336148ecF312dbe843e
# Audits Tokan Exchange is a THENA fork. THENA's codebase was adapted from Velodrome codebase, which was lifted directly from the Solidly smart contracts which were made open source in March 2022. THENA was completely audited by PeckShield on March 25, 2023: {% file src="/files/xaK7eeKPzuVbr9IUJySc" %} The original Solidly AMM has been audited by PeckShield, which revealed 5 low-severity and 1 informal findings. There have been no security-related incidents involving Solidly smart contracts since their deployment on Fantom in February 2022. {% file src="/files/4O9PVXuQxSs3z15WJmc3" %} # Official Links Website: [https://www.tokan.exchange](https://www.tokan.exchange/) dApp: [https://app.tokan.exchange](https://app.tokan.exchange/) Twitter: Discord: Medium: Github: Immunefi: Coming soon Dune Dashboard: Coming soon # Brand Assets ### Logo
### Banner