Tokemak is a protocol that attempts to solve this problem by allowing liquidity providers to deposit assets in single-sided reactors. The liquidity in these reactors is directed towards decentralized exchanges. These reactors are liquidity pools composed of assets-TOKE. Liquidity providers stake their assets, and are rewarded in TOKE. Liquidity Directors stake TOKE and are rewarded in TOKE.Tokemak itself earns yield on the directed liquidity in non-TOKE assets, which are added to its treasury. Tokemak “solves” the problem of liquidity by removing the need for protocols to constantly issue rewards to attract capital, and retains mercenary capital by removing many of the frictions associated with liquidity mining, such as high gas fees, pair management, and impermanence loss. TOKE holders decide where liquidity is directed, which allows protocols accumulating TOKE to retain control over liquidity.