Merge pull request #22 from john-walter-munene/feat/Article-understanding-gluon-liquidity-pools

Add new article on series of understanding Gluon.

Author: Zahnentferner

public/articles/understanding‑gluon_through‑liquidity‑pools.md

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+---
+title: "Understanding Gluon through Liquidity Pools"
+author: "Zahnentferner"
+date: "2024-08-18"
+image: "/images/understanding-gluon-if-you-know-liquidity-pools.webp"
+excerpt: "A breakdown of how Gluon mimics a liquidity pool model, but with one reserve token and dual output."
+---
+
+# Understanding Gluon through Liquidity Pools
+
+Gluon is a novel stablecoin protocol researched and developed by The Stable Order.
+
+**Gluon behaves similarly to the *dual* of a liquidity pool.**
+
+Want to see it in action? Check it out over here: [<u>https://gluon.gold</u>](https://gluon.gold).
+
+Interacting with it while reading this will help you get a better feel for how it works.
+
+## How Gluon Works
+Let’s break it down into simple steps:
+
+1. **Fission:** This is when you put one type of coin in (like ERG) and get two different coins back (let’s call them GAU and GAUC). GAU is tied to the price of gold — 1 GAU equals 1 gram of gold.
+
+2. **Fusion:** This is the reverse process. You give back your GAU and GAUC, and you get your original coin (like ERG) back.
+
+3. **Transmutation:** This is when you swap between GAU and GAUC.
+
+## How is This Different from Regular Liquidity Pools?
+1. In a normal liquidity pool, you put in two types of coins and get one token back. Gluon does the opposite — you put in one coin and get two back.
+
+2. Regular pools hold multiple types of coins. Gluon’s reserve only holds one type.
+
+3. In normal pools, bigger trades cause bigger price changes. In Gluon, it’s not just about the size of one trade — it looks at how much trading has happened over the last two weeks.
+
+4. Most pools only charge fees when you swap coins. Gluon charges small fees for all its operations (fission, fusion, and transmutation).
+
+5. In regular pools, the fees go to the people who provide the liquidity. In Gluon, the fees benefit both GAU and GAUC holders. GAU becomes more stable, and GAUC potentially becomes more valuable.
+
+## Why Does This Matter?
+
+The idea behind Gluon is to create a more stable and reliable system for cryptocurrencies. By working differently from traditional methods, it aims to provide better stability and potentially more benefits for its users.
+
+Remember, like all crypto projects, Gluon is new and experimental. Always do your own research and be cautious when investing in any cryptocurrency.
+
+This is the third in a series of articles about understanding Gluon.
+
+Read the [<u>previous articles</u>](https://news.stability.nexus/). Join the Stability Nexus’s [<u>Discord</u>](https://discord.gg/YzDKeEfWtS) and [<u>Telegram</u>](https://t.me/StabilityNexus), and follow Gluon on X, to be notified of future articles.
+
+Use Gluon Gold on Ergo at [<u>https://gluon.gold</u>](https://gluon.gold).