Thread by @WesleyBKress

1/ A case study of $eGLD ⚡️ @ElrondNetwork & @MaiarExchange $MEX Ⓜ️maintenance & explanation of Y economic reward changes needed to be made immediately for everyone’s best interest *except mercenary capital. Y changes were made (speed) & what can be improved going forward #Crypto

2/ As discussed in 2.5 HR 🎥 #MasterClass @MaiarExchange $MEX there can be unforeseen elements. We R investing in disruptive technology w/ A LOT of moving pieces. With great rewards comes complexity & risk. As stated Risk Adverse = only allocate 5% to #DEX

3/ The @ElrondNetwork $eGLD Team did endless bounty testing to ensure things were Secure 🔒 & ready to go for the @MaiarExchange (Paying out a lot of real money to stress test it 2X) This has proved to work according to plan (No security issues).

4/ Economic Model was designed from beginning to prevent & discourage mercenary capital from draining rewards which creates a lose, lose like most #DEX models do. Well thought out BUT magnitude was unforeseen #ViciousCycle immediate change needed, fast:

5/ Team acted & deployed new economic model immediately via Smart Contracts which did NOT decrease total rewards but it did almost entirely remove mercenary capital, causing outflows 📉It increases rewards for community as APR/APY % are due to how much participation is occurring

6/Most #DEX in #DeFI suffer a lot from Mercenary Capital which really only rewards (Large Positions) who R short sighted. They Bring Large positions take all unlocked rewards, dump & leave once #Bootstrapping is done. Y Charts look like this, many don’t have ANY locked rewards:

7/ As described in our🎥 much of $MEX rewards would be locked depending on who elected $LKMEX vs. $MEX issue is when large 🐋 come in & absorb a lot of rewards they can start #VisciousCycle despite design as was starting to unfold due to large mercenary 🐋

8/ Speed was necessary to preserve value for community & protocol as $MEX was starting downward momentum. This shows humility & intelligent 🧠 flexibility to me. What went wrong? Updated economic model caused an unforeseen $MEX only pool bug which was discovered upon the update

9/ To clarify the @ElrondNetwork $eGLD blockchain is not down, never was & has continued to work this whole time, ZERO downtime. If anyone has tried to send $eGLD or do anything else outside of functions on #DEX 💯 functionality.

10/ Process of decentralization is giving away ownership. This is #Bootstrapping & TEAM must make centralized decisions until decentralized & governance in place, all a function of time. TEAM gave away entire Exchange $MEX #DEX to those participating.

11/ At times decisions can be slow well communicated & other times must be done very fast. While #DEX was running smoothly outside of first night challenges, very much needed economic changes led to an unforeseen problem. In future further testing prior to roll out is needed

12/I know this is all very new to many, complex & involves money which can cause all emotions to run high. We are all investing in disruptive technology which in involves complexity. Part of being early means we get more asymmetrical reward but also means we deal w/ growing pain

13/Impressed w/ how economic crisis was handled & for best interest of long term alignment & value creation. Many economic models in #DeFI R still being perfected (many won’t work) & I believe more will shift to this model (if they have a supportive community w/ long term vision)

14/ Remember FIXED amount of rewards paid out. APR/APY go much lower when more & more participation occurs (i.e. if large Mercenary 🐋) continued like they were, they essentially steal those reward from U, the Protocol & Elrond $eGLD while this was a foreseen risk & Y $LKMEX was

15/ Designed into the model it needed optimization further due to the magnitude of the Mercenary Capital 🐋. All the changes can be visually represented in this picture. Now 95% of rewards go to $LKMEX & 5% MEX Remember APR/APY R based on participation of each FARM.

16/ For me this was handled very well despite the unfortunate nature of the #DEX being down, in larger context days are minor in getting it right. I am even more comfortable now to 👀 team can handle Live Curve Balls & the Blockchain still continues to have ZERO downtime.

17/ The reason for this post is to help explain some of the complexities of moving pieces & events. I am an analyst & educator. This is designed to educate based on my understanding of all events & is by no means a representation of @ElrondNetwork $eGLD ⚡️#Crypto $MEX Ⓜ️

18/ Continue to stay updated & I believe everything should be worked out & resolved very soon. As a community we win together & we learn together. This was a powerful learning for all in the @ElrondNetwork $eGLD ⚡️ Thankful to share this journey together. 🥂 to Learning & Mastery