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Does DeFi really works in SmartBCH?

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Avatar for yourfriendlyagorist
6 months ago

It seems that Bitcoin Cash will have a tough recovery from centralized institutions falling apart for a month already. Although this is something good to create conditions where only decentralization matters, it is a strong hit for the economy of many investors who are panicking or leaving the ecosystem for both good or bad.

It sounds like an uncomfortable situation but people often forgets that this is the worst bear market cycle in years if not the worse. Ethereum L2's being highly vulnerable, Solana DAO's being controlled by a group of individuals and more.

Fortunately, this also proves that projects with solid foundations can survive in a harsh situation, MistSwap DEX it's a good example of good tokenomics generating wealth during an absolute bear cycle.

This is some data collected from the Mistswap farm algo which rewards investors from the LP's through AMM, for example controversial projects/tokens are way less rewarded and the ones with utility and consistent bridging increases automatically their rewards.

To understand what a Farm Allocation Algorithm is, most DEX's use a developer selected multiplier on yield farms to reward in a native token. MistSwap has decided to do something else, and make this choice mathematical in a way to optimize amount of volume and ensure fairness of the platform.

In essence, this means that the rewards from yield farming on MistSwap are determined by the properties of the trading pairs and how they compare to each other.

How does MistSwap's algorithm work?

First, the MIST/BCH pair is given a 30% allocation. Then, the next top 29 pairs by volume are selected (making a total of 30 pairs). We set an allocation floor of 0.25% (Currently 0.25 MIST per block out of 100 total MIST issuance per block) for each. The total volume of the pair over the preceding month is multiplied by the volatility of the pair over the preceding month.

Why was this algorithm selected?

We want to have an algorithm that closely matches risk-adjusted return of an asset to encourage maximum volume for MistSwap.

The focus on volume over just liquidity is to ensure that xMIST stakers are rewarded and that farm allocation cannot simply be due to unrealistically highly priced liquidity.

Recently, I've got some collected data of the potential tokens based on the recent weighting algorithm:

Law/BCH - one of the biggest growing tokens this month

flexUSD/flex - lots of activity from people selling flex.

LNS/BCH - LNS was one of the best growing tokens this month.

New Potential Farms

BCH/bcBCH - 14.61% of allocation

BCH/bcUSDT - 13% of allocation (This is the new main stablecoin on smartBCH)

flexUSD/bcUSDT - (Great way to move a fragile stablecoin to a solid one)

MIST/BCH statically set is now the highest allocation to farm.

This can heavily cover all your losses, and it gives you a chance of investing safely in a long-term, remember MistSwap DEX it's probably the one who can create a safe refugee for those who were investing in failed DEXes of CEXes.

Be sure to DYOR, at the end of the day this is NFA. I only research about the best I can find in SmartBCH because I feel it has a lot of potential to not only survive, but being an easy top L2 in the space.

Follow Mistswap:

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Avatar for yourfriendlyagorist
6 months ago
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