Tapio is a synthetic asset protocol designed to unify different formats of staking and crowdloan derivatives into a highly efficient standard.
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We aim to solve the challenges below to improve overall capital efficiency for the entire Polkadot ecosystem:
• Siloed liquidity on individual parachains
• Adoption challenges for each derivative format
• Parachains have to compete for DOT liquidity

tDOT is the unified liquidity standard for staking and crowdloan DOT derivatives. It’s minted by native DOT and DOT derivative into a standalone liquidity pool. Currently, tDOT is live on Acala which is made up of DOT and LDOT.

No matter whether you are DOT holders, traders, parachains, or application builders, tDOT can bring you benefits. Check this article to learn more.

• Maintains a stable peg against DOT
• Provides sustainable and competitive yields
• Freely transfer between parachains and use in applications

tDOT is powered by Stable Asset System which is comprised 2 main functions:
Stable Swap - Enables highly efficient swap between native DOT and DOT derivatives
Stable Asset - Synthetic asset (tDOT) is minted and backed by standalone liquidity pools (native DOT and DOT derivatives)
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With XCM, liquidity on Parachain can be used to mint tDOT on Acala then be transferred back to original chain to get unified.
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tDOT has demonstrated the mechanism well during the aUSD incident. You can check here to know how tDOT performed to keep the pool balanced.

• Earn protocol fees, paid out in tDOT
- 0.25% swap fees
- 0.3% redemption fees

• Earn yields generated from staking derivatives, paid out in tDOT
- tDOT retains the underlying staking yield generated from LDOT (More LDOT in the pool will maintain a higher yield for holders)

• Earn TAP token incentives (Coming)

tDOT is made up of DOT and LDOT now. So we can provide the single-side liquidity of DOT/LDOT or provide proportionally to mint tDOT. You can refer this guide to mint tDOT on Tapio dApp, or mint on Acala dApp.
Please noted that you should have your assets on Acala network first and have enough ACA for fees. You can refer to this guide to transfer.

• Hold to earn rewards
• As collateral for margin trading or borrowing aUSD
• Transfer to other Parachains or dapps to explore more opportunities

No lockup period. You can just hold tDOT to earn rewards, and redeem into DOT/LDOT whenever you want.