I support this idea in general, and have a question on the specifics.
If the way this works is as @Jake343 stated above, and it is really a 2-sided pool that allows people to only add to one side as the pool balances - if the market moves and you go to remove your share, can you be guaranteed you can always get back the amount you put in? Seems like if everyone tried to get back their initial investment in the currency they used, there may not be enough - due to the fact that the pool allocation changes as the market moves. So is there impermanent loss protection?
Or maybe the pool does not auto adjust - it only allows people to add in on the side that needs to be balanced. If that is the case, then I can see how this does have impermanent loss protection. In this scenario, what happens if there is no one willing to enter the pool with the token that is needed to balance the pool? Can it allow trading to occur? If so, it could wind up totally draining one side of the pool, could it not?
Thanks for helping me understand this.