Core Liquidity Pools
Core liquidity pools on ZetaChain facilitate cross-chain gas fee payment and depend on ZETA.
Overview
The network has ZETA / Managed-Token-Gas pools that are used to pay for gas on outbound transactions.
By using ZetaChain cross-chain functionality, the protocol uses these underlying pools to pay for outbound gas in transactions on external chains. This means that with the increased usage of ZetaChain’s core functionality, comes increased usage and fees of these pools. Arbitrageurs will be able to balance these pools as they are utilized by the network.
While the protocol uses UniV2 pools for this functionality to start, further methods such as Curve-like pools, DEX aggregators, or otherwise will be explored to ensure minimal cost or slippage for end-users or developers.
What is a core pool?
ZetaChain needs a [ZETA] / [Gas ZRC-20] Uniswap Pool (on zEVM) to convert ZETA in order to write outbound transactions to that chain. Whenever a chain's support is added, a corresponding pool between ZETA and that chain's native gas asset is also created. You can read more about how these pool function in the Omnichain Smart Contracts documentation here.