Tokemak is a decentralized market making protocol that seeks to generate better capital efficiency for Liquidity Providers (LPs) across the DeFi ecosystem. Tokemak serves as a “liquidity router” that sits on top of decentralized exchanges, controlling the flow of liquidity as a means to provide cheaper and more seamless liquidity sourcing. Tokemak’s system is composed of “Reactors” and “Liquidity Directors”. The interaction between these allows for different protocols and DAOs to direct where their liquidity goes without having to rely on traditional incentives like high APY pools that can be inflationary.