Introducing SmartDex, the new Dex on smartBCh with a unique reward model

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2 years ago

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.

How the smartDex works

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.

Deposit and withdrawal

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:

  • WBCH-dSMART

  • SMART-dSMART

  • WBCH-FLEXUSD

  • WBCH-EBEN

  • WBCH-MIST

  • WBCH-LAW

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.

https://t.me/smartdogebchofficial

Dex link: https://dexsmart.net/#/swap

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2 years ago

Comments

Thanks for writing about this new launched SmartDex but I’ll like if you can also write about how to invest in it.

$ 0.00
2 years ago

I'm literally don't know about this but when you shared it I at least got the chance to know and learn.

$ 0.00
2 years ago

i have been hearing about this, i might have to look out for it, but i saw gain strategies post about their fees, that sounds discouraging

$ 0.00
2 years ago

Yeah, that was a valid response, but the fees are not a problem considering the high aprs on the farming pools, and those fees only apply to farming and not for single staking

$ 0.01
2 years ago

pls i am yet to understand what is the difference between the Dsmart and smartdoge token, im still yet to figure out

$ 0.00
2 years ago

smartdoge is a coin that's already existed and has been trading on Mistswap, smart is the native token of the dex. the two are related because the same person owns the projects.

$ 0.00
2 years ago

"Short-term farmers who only want to make a quick buck and dump the token are discouraged by SmartDex's deposit and withdrawal system."

I know the developer claims that's the reason, but how can you dump the token when. 95% are locked up? It makes no sense.

He also didn't mention the fees on the DEX itself. That leads to people paying fees they didn't know existed. That seems very unprofessional to me. I will stay away.

$ 0.00
2 years ago

You are right, am beginning to see it right now, rather than the deposit and withdrawal fees it should be the locking feature that should discourage a dumping of the token.

And for the Dex fees I think the dev wrote in the telegram group of updating the medium post.

$ 0.00
2 years ago

Yes, I complained about the fees not even being mentioned on the DEX. 😅 At least he is adding a link now where people can read about the fees.

$ 0.00
2 years ago

That's great dear friend ☺️☺️😊

$ 0.00
2 years ago

Smartbch it's means going to extend their achievement and user are getting more and more successful life through this one , I'm happy to be part of this project. In short term everything will be good and user can withdraw whenever they want and put alo whenever

$ 0.03
2 years ago

You didn't describe how to go about it, for the newbies or those who wishes to join

$ 0.00
2 years ago

Sorry, I accidentally thought you commented on my article.

$ 0.00
2 years ago

Joining a Dex shouldn't be a problem, the telegram group link is attached to the article, you can get whatever you want in the group.

$ 0.00
2 years ago