BitCode
Thanks for the feedback, appreciate your views. Spaces are to be scheduled in collaboration with the DBXEN team, we're looking forward to expand on the protocol.
To see to your comments;
- Great question, but not sure exactly what you are referring to here. But, if there's no yield from staking DXN in the protocol, this inherently implicits that the whole of DBXEN Protocol is not yielding anything. The risk would be that the DBXEN Protocol has failed, which in itself would also make XCM Protocol redundant, as the system doesn't work anymore.
If you are referring to the liquidity window with regards to the FPOC Fundraise:
- In theory, we only need a little ETH to start the LP's, w would personally fund the DXN to get there, as w know that the rewards will be worth it once the Fundraise period concludes - so its structued in a way that would make us really want to participate, which should be the aim for participants
- Once the FPOC Raise is concluded, participants can claim and stake their locked DXN/ETH and XCM/ETH LP
- Once the LP's are live and the XCM Fixed Rewards start dripping, participants will want to mint LP tokens as the rewards will be gigantic for a very small pool (assuming participation is low as you suggested) and the mint price for LP's will increase daily
-The ETH Yield derived from staking DXN will be used to buy & burn XCM and add deflation to reward claims and sells - and remember all volume will contribute to a rising price floor in the LP's
Remember that, when the protocol is live, there will be a lot of DXN buy & burns and the Fundraise also requires DXN - which will cause demand/speculation - which in itself fuels the propensity to burn XEN and pay ETH to get DXN to profit.
This model can also be used by other developers looking to raise capital through DXN as a liquidity launchpad, locking tokens with DXN as an LP, having the DXN/ETH LP from XCM Protocol as the core liquidity provider for the ecosystem. Which over time provides the basis for a DEX.
- Thanks, yes, we've looked at the option to work with what is already available. However, due to the immutability of the DBXEN contracts - its not possible to integrate new incentives into the contract that would contribute to the desired behavior in terms of locking liquidity,
Hence, the XCM token functions as a hyperdeflationary reward token that'makes it worth deposting DXN into the contract to convert those DXN into an DXN LP and an XCM LP that can be claimed and staked by the participants.
We've only shortly expanded on the vesting schedules, but this adds to the hyperdeflation of the XCM token:
- Claims cause a Vesting Schedule of 365 days (5% deposited at claim, rest is dripped over a 365d period until 100%)
- Buys cause a Vesting Schedule of 7days (10% deposited at claim, rest is dripped over 7 d period until 100%)
- XCM Tokens can be compounded into the XCM Staking Vault - burning and multiplying XCM Rewards for paticipants from the Fixed and Variable Rewards
- XCM Tokens are bought and burned from the ETH earned through staked DXN into DBXEN
- XCM Tokens are burned with each Contract Interruption of the Vesting Schedule related to Claims and Buys
And again, all Volume inside the LP's amount to an increased Price Floor in ETH, based on the K formula from Uniswap. Hence, there's quite some game theory involved for speculators for instance.
- How would you want to structure the LP in this case, and what would be your incentive to lock liquidity for DXN?
- The Dev Fee of 1% is for the DBXEN Team and not for us, we are not profiting from the volume derived from XCM Protocol. The XCM Protocol earns ETH revenue by Buying & Staking DXN into DBXEN Protocol through Contract Interruptions of the Vesting Schedule.
- Could you expand more on this, not sure what you mean here? The XCM Fixed Rewards are dripped according to a variation of the DXN disinflationary distribution, without requiring a XEN burn.
Looking forward to your response.
