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# System prepended metadata

title: Promethios Retrospective Part 3 - Liquidity and Rebasing

---

# Where should we call home?

Rebasing, changing the supply of a token, is a non-standard ERC-20 token behavior. It can break composability with modern contracts, including uniswapv3 and bridge contracts. Even if it doesn't break the contract, it may take special considerations to use correctly.

But first, let's start with what is an ideal liquidity set up for FIRE

## Ideal FIRE liquidity Pool

 - Stableswap (i.e. concentrated liquidity) pool with 1:100 Price Ratio
 - Low Fees (minimize extra protocol fees)
 - Supports Rebasing

This does not currently exist. So, what can we do in the meantime?


### What we did.
At launch, we targeted UniswapV2 pools because we know how to use them with rebasing safely. But, unfortunately, Uniswap did not launch v2 on Arbitrum or Optimism. This led us to use 3 different Dex's at launch.

1. Mainnet - UniswapV2 (Uniswap's Deployement)
2. Arbitrum - Sushiswap (A legacy V2 Pool)
3. Optimism - Velodrome (Their Volatile price pool which is a Solidly Fork which is a UniswapV2 Fork)

You may ask yourself, sure, it could be better, but this works. What's the problem?

### The Problem is:

Two fold; First is **Concentrated Liquidity is more capital efficient**. The industry has moved from the old v2 style pools for a reason.

Second; **We miss out on modern liquidity incentive programs.**

### wFIRE Enters The Chat

Although FIRE rebases and breaks composability with contracts, wFIRE does not. WFIRE abstracts rebasing away from the FIRE underneath. You can mint wFIRE with FIRE and unWrap wFIRE to receive the underlying FIRE.

`FIRE Contract Address: 0xB25EA095997F5bBaa6cEa962c4fBf3bfc3C09776`
`wFIRE Contract Address: 0x1A7383700eE220C5efC0Ffe5772Fbd490c8614B7`

We can use wFIRE to bootstrap liquidity for Promethios. This enables us to use UniV3 and participate in modern liquidity incentive programs.

### What this will look like.


1. We move liquidity from Ethereum Mainnet to Arbitrum (as per our previous article)
2. We move liquidity on arbitrum to wFIRE:FRAX pool on Univ3
3. We partner with bunni.pro and join their veToken incentives program (Launching soon)
4. And, We partner with FRAX to provide extra insentives vie [Hidden Hand](https://hiddenhand.finance/bunni)

With this we can bootstrap our Protocol owned Liquidity using wFIRE until we find a proper home for direct FIRE liquidity  

And if we don't find one, we can build one.


### What about Optimism?

Liquidity on Optimism will stay as it is in the Velodrome Pool. Why focus on Arbitrum now? Well.. that will have to wait until next time.



