Buy HEX – Deep Dive into TIDE’s 80/20 HEX CST Pool

As part of our ongoing series exploring the pools on TIDE—a fork of Balancer V3 tailored for the PulseChain ecosystem—we’re taking a deep dive into the Buy HEX pool. This pool combines 80% HEX and 20% CST (Coast token) to create a liquidity environment that minimizes impermanent loss (IL) while reducing slippage for users onramping to PulseChain.

TIDE, built by the Coast team, brings the advanced features of Balancer’s weighted pools to PulseChain, where traditional DEXes like PulseX rely on 50/50 splits. If you’re familiar with Balancer’s documentation, you’ll recognize the mechanics here, adapted for PulseChain’s low-fee, high-speed environment.

This post will cover the assets involved (HEX and CST), the rationale behind the 80/20 split including its benefits and limitations, a detailed comparison of impermanent loss versus a 50/50 pool (like those on PulseX), and a profile of the ideal investor for this pool. Whether you’re a liquidity provider (LP) or a trader, understanding these details can help you make informed decisions in the PulseChain DeFi space. For more on TIDE, visit the TIDE DEX.

Assets in the Pool

HEX: The Blockchain Certificate of Deposit

HEX is a flagship cryptocurrency on PulseChain, often described as the world’s first blockchain certificate of deposit (CD). Launched by Richard Heart, HEX rewards users for time-locked staking, offering potentially high annual percentage yields (APY) through an inflationary mechanism that benefits long-term holders. On PulseChain—a fork of Ethereum designed for faster transactions and lower fees—HEX serves as a key asset for yield farming and speculation.

Key features of HEX:

• Staking Rewards: Users can stake HEX for periods ranging from 1 to 5,555 days, earning yields based on the average stake length across the network. Longer stakes amplify rewards, encouraging delayed gratification.
• Supply Dynamics: HEX has no fixed supply cap; instead, it inflates to reward stakers, with penalties for early unstaking to maintain system integrity.
• Use Cases on PulseChain: Beyond staking, HEX is traded widely on DEXes like TIDE and PulseX, providing exposure to PulseChain’s growth. As of October 2025, HEX remains a high-volatility asset, appealing to those bullish on the ecosystem.

In the Buy HEX pool, HEX represents the volatile, growth-oriented side, allowing LPs to maintain significant exposure to its upside potential without staking (keeping assets liquid).

CST: The Utility Token for Onramping

CST, or Coast token, is a PRC-20 utility token issued by the Coast team exclusively on PulseChain. With a market cap of approximately $11 million, CST is designed for direct onramping to PulseChain. Learn more about the Coast token $CST.

Key features of CST:

• Onramping Role: CST serves as a bridge for entry into PulseChain. Users can purchase CST directly with bank funds via Coast’s platform, then trade it for other assets like HEX without high Ethereum gas fees.
• Utility: As a utility token, CST is used for trading pairs, yield farming, and facilitating access to the ecosystem.
• Market Cap: Around $11 million, indicating significant adoption on PulseChain.

In this pool, CST acts as the onramp anchor, enabling efficient trades for users converting to HEX while providing LPs with exposure to ecosystem growth.

The 80/20 Split: Why Not 50/50?

TIDE leverages Balancer V3’s weighted pool technology, allowing custom asset ratios unlike the fixed 50/50 model on PulseX. The Buy HEX pool uses an 80% HEX / 20% CST weighting, meaning the pool’s value is allocated 80% to HEX and 20% to CST at equilibrium. Explore TIDE’s features further here.

Benefits of the 80/20 Split

• Reduced Impermanent Loss for HEX Bulls: By overweighting HEX, LPs suffer less IL when HEX’s price rises, as the pool rebalances less aggressively. This aligns with investors optimistic about HEX’s growth.
• Lower Slippage for Onramping: With more HEX in reserves, large buys of HEX using CST experience minimal price impact. This supports Coast’s goal of easy entry to PulseChain, attracting new capital and boosting ecosystem liquidity.
• Capital Efficiency: LPs can provide liquidity while holding a portfolio skewed toward their preferred asset (HEX), earning fees without equal exposure to the other token.
• Ecosystem Support: The split encourages low-cost onramping, making PulseChain more accessible and potentially increasing overall network adoption. Check out Coast’s referral program for more ways to engage at .

Limitations of the 80/20 Split

• Higher IL on Downside: If HEX’s price falls, the overweighting amplifies IL compared to a 50/50 pool, as more value shifts to CST.
• Asymmetric Risk: The pool is less balanced, so LPs bear more HEX volatility. This isn’t ideal for risk-averse providers.
• Fee Distribution: Trading volume may concentrate on one side, potentially uneven fee accrual.
• Dependency on CST: Relies on CST’s market adoption and liquidity; any significant changes could disrupt the pool.

Overall, the 80/20 design prioritizes HEX exposure and onramp efficiency, but it’s a trade-off—gaining upside protection at the cost of downside vulnerability.

Impermanent Loss

Calculations: 80/20 vs. 50/50

Impermanent loss (IL) is the opportunity cost of providing liquidity versus simply holding assets. In weighted pools like those on TIDE (forked from Balancer), IL is calculated using the formula:

IL = 1 – (r^w) / (w · r + (1 – w))

Where:

r = price ratio (new HEX price / initial HEX price, relative to CST)
w = weight of HEX (0.8 for this pool)

For comparison, a 50/50 pool (like on PulseX) uses w = 0.5.

Here’s a table comparing IL for various HEX price changes:

As shown, the 80/20 pool significantly reduces IL when HEX appreciates (e.g., 13.72% vs. 25.46% at 5x), but increases it slightly on moderate declines and more on sharp drops. This makes it superior for bullish scenarios, aligning with HEX’s growth narrative. For more on Balancer’s IL mechanics, refer to

Investor Profile

Who Might Provide Liquidity Here?

This pool is tailored for a specific type of investor on PulseChain:

• HEX Enthusiasts: You believe in HEX’s long-term upside and want exposure without locking up in stakes.
• Liquidity Seekers: Prefer staying liquid to trade or withdraw anytime, unlike staking’s time commitments.
• Risk-Tolerant Optimists: Comfortable with high upside potential and minimal downside IL on price increases, but accepting higher losses if HEX drops.
  Ecosystem Supporters: Want to facilitate low-cost onramping, knowing it brings new money to PulseChain, potentially boosting HEX and PLS values.

If you’re a conservative holder or expect HEX volatility to the downside, a 50/50 pool or simple holding might suit better. Always DYOR and consider fees, volume, and personal risk tolerance. Read about CST’s launch on PulseChain.

Conclusion

The Buy HEX pool exemplifies TIDE’s innovation on PulseChain, using Balancer V3’s weighted mechanics to create a user-friendly, efficient liquidity venue. By blending HEX’s growth potential with CST’s utility in an 80/20 ratio, it minimizes slippage for onramping while offering LPs reduced IL on bullish moves. Stay tuned for more deep dives into TIDE pools, and check out the upcoming TIDE docs for PulseChain-specific details.