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To summarize, the Starfish Topology offers two key advantages over other swaps: a significant improvement in TVL-utilization by reducing liquidity dispersion and the ability to onboard new tokens with zero collateral other than protocol tokens (e.g. no new USDC is required to pair with a new token for liquidity provision). However, this topology can be further enhanced by transitioning to a Multi-Tier Starfish Topology (MTST) as outlined below:
In MTST, all external tokens supported by the swap are divided into four buckets and paired with separate starfish tokens:
Tier 1 (Paired with RADIO): Stable Coins (e.g. USDC, DAI, USDT, UST, etc.) and Native Blockchain Currencies (e.g. ETH, MATIC, AVAX, BNB, etc.). Tier 1 tokens are paired with RADIO. This tier is expected to be the least volatile Starfish.
Tier 2 (Paired with SHACK): Blue Chips (e.g. LINK, LUNA, USV, AAVE, etc.). Tier 2 tokens are paired with SHACK. This tier is expected to be more volatile than Tier 1 but less volatile than the remaining two tiers.
Tier 3 (Paired with BUILD): Mid-stage Protocols (e.g. MANA, GRT, ENJ, etc.). Tier 3 tokens are paired with BUILD. This tier can be quite volatile over time.
Tier 4 (Paired with DREAM): Startups (e.g. ECOMM.io and more). Tier 4 tokens can have even wilder fluctuations than the previous three tiers and are paired with DREAM.
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