Introducing SmartDex, the new Dex on smartBCh with a unique reward model
Today being the 10th of January, a new Dex was launched on smartBCH with a unique reward model. The new kid on the block is called SmartDex, a product from the SMARTDOGE developer. If you have been investing in any Dex on the smartBCH ecosystem you definitely will find this new Dex interesting. With a reimagined user experience, smartDex is ambitiously redefining what a decentralized investment platform should be to make both big and small investors feel comfortable and safer with their investment in the smartBCH ecosystem.
The operating mechanism for SmartDex is going to be the most efficient and secure dex for investors on smartBCH. SmartDex has created its own unique reward model by merging solo staking and revenue accrual models present in existing DEXes such as Sushiswap and other popular multi-chain Dexes to reward holders of the Dex native token dSMART.
dSMART is the utility token that will be used as the reward for yield farming and staking rewards as well as for payment of transaction fees on the DEX.
Staking and farming are available on the Dex but with a unique reward model. Users who stake their dSMART tokens on using the smartstake feature are eligible to receive 1/3 of the fees collected from the transactions that take place across all the pools on the Dex. There is no withdrawal fee when using the smartstake feature, and users can deposit and withdraw their smart tokens anytime they like to do so.
Liquidity providers can farm the native token on the various farming pools by providing pairs of the tokens they want to farm with as it's done on all Dexes. But there is something different with the farming reward model of this Dex from other Dexes on smartBCH network. A kind of anti-whale and a model that encourages long-term investment and holding.
The farming reward system consists of 95% locked, while 5% of these tokens will be unlocked and available to users for collection daily. This will help to prevent token dumps from massive selling of earned rewards and encourage long-term investors while also keeping the value of dSMART token growth.
To avoid diluting the benefits and skewing incentives for SmartDex's growth, the platform is implementing a comprehensive lockup strategy in which 95% of earned tokens will be locked up and 5% will be available immediately.
This is so unique and the first of its kind in the smartBCH ecosystem. This model of incentivizing farming is intended to discourage massive selling and dumping of farmed tokens, as with the case of most Dexes in the smartBCH ecosystem. This kind of unique feature can help the new Dex to remain relevant for a very long time. Moreover, it can also help the Dex to weather the storm of severe economic downturns and act as a price buffer in the short-medium term.
How the feature works are in two ways. Firstly, the locked 95% reward will be made available to users whenever a user unlocks it, and payout slowly at a daily rate of 0.55% of the total reward earned over a period of 6 months. The second way is a kind of extrapolation, in this case, the user who does not need to unlock the 95% reward earned gets a payout of 0.5% of the 95% every day on a per-block basis. This means a user can 10% payout from the reward earned every day.
This is a one-of-a-kind tokenomic model that everyone can trust and invest in, knowing that their money will be safe. Within the first two weeks of launch, most of the Dexes in the smartBCH ecosystem experienced excessive farming and selling of farmed tokens, resulting in a large dump of the Dex native token. A scheme like this provides small investors confidence while also adding value to the Dex.
SmartBCH Dex is different through and through. The smartDex native token dSMART will not just be a governance token used within the Dex ecosystem, will serve as a tool for building other products on top of the Dex infrastructure, which includes launchpad, holders' voting right, integration with other blockchain protocols, etc. We believe that this is missing in the majority of the Dexes that currently exist in the smartBCH community.
Short-term farmers who only want to make a quick buck and dump the token are discouraged by SmartDex's deposit and withdrawal system. Deposit and withdrawal fees are intended to incentivize DEX users who make use of the SmartStake feature (Smartstake is the single native token pool of the Dex). When a user deposits LP tokens into any of the farming pools, 0.75 percent of the deposited amount is collected as a fee to the treasury.
A dynamic model is also deployed and applied to the withdrawals system, as follows:
1% fee if a user withdraws under 5 days.
2% fee if a user withdraws under 3 days.
4% fee if a user withdraws under 24 hours.
8% fee if a user withdraws under 1 hour.
These fees are used to incentivize holders of the Dex native token, and also to the locked treasury which can be used for further developments on the dex in the future.
The pools on SmartDex
To begin, SmartDex starts with a modest and safe collection of pools; now, just six pools are available for farming, but they could add more based on community interest in the future. This will likely see other SmartBCH projects having a pool on the Dex in the new future. The available pool on SmartDex at the time of writing are listed below:
To know more about SmartDex read the Medium article from the link below, and also join the telegram chat group to meet with the growing community of users of the dex.
Dex link: https://dexsmart.net/#/swap