/1 Do you think that the @GMX_IO team is building only a perpetual DEX?
The #GMX goals are much higher than you might think👀🚀
Join me for a 🧵 on X4 Protocol, a unique #AMM developed by the @GMX_IO team👇
/2 Overview
GMX team plans to start working at X4 Protocol after GMX synthetics market goes live.
The team's vision is to build an AMM that gives pool creators and projects full control over the functions of its pool.
So how will be X4 different from a classic AMM?🤔
/3 Dynamic fees
Projects will be able to set pools fees to any % they choose. More than that, they'll be able to change them whenever they want.
Also, the fees for selling/buying a token will not need to be the same.
But how will these changes improve the trading experience?
/4 If you tried to buy a project token after its listing on an AMM, you might have seen how its price quickly increased and decreased in a matter of seconds.
This is happening because of the bots that instantly purchase the tokens at a low price and sell them to later buyers.
/5 X4 wants to solve this problem!
The project team will be able to set a high selling fee(e.g. 15%) after the token listing.
Because of the high selling fee, this strategy will not be profitable anymore.
So the project fans will be able to buy the token at a fair price🧠
/6 Greater Composability
The creation of pools that mint yield-bearing tokens upon entering the pool will be possible.
Let's take a aUSDT-aUSDC pool as an example 👇
Yield-bearing tokens - tokens that provide some form of added gain on top of the ordinary asset
/7 A LP will be able to deposit USDT and USDC to get a share of that pool fees.
The X4 protocol will deposit his tokens on AAVE to get aUSDT and aUSDC before providing liquidity.
So the LP will earn:
-trading fees
-AAVE lending rewards
aTokens- tokens deposited on AAVE
/8 Aggregation
X4 will also work as an aggregator at the beginning to ensure that traders don't incur high slippage.
So X4 will also route some trades through GMX swap and other AMMs(Uniswap, etc.).
/9 Other possibilities
•pools creators can distribute a part of the pool swap fees in a lottery format(to a random trader)
•creation of concentrated liquidity pools
•if a stablecoin lost its peg a part of the trading fees can be sent automatically to those who restore it
/10 That's all!
Here you can find an in-depth article about X4 Protocol in case you want to learn more: medium.com/@gmx.io/x4-pro…
If you found this thread helpful, please leave a like and retweet the 1st tweet. 🤝
/1 There's a debate on CT about whether @CurveFinance economic model is sustainable or not.
What are the benefits of the $veCRV tokenomics for the long run?
What will happen to Curve after $CRV emissions will run out?
A 🧵 on my thoughts regarding Curve's future👇
/2 Firstly, we have to understand why Curve Finance became so successful:
Curve is the perfect place for swapping tokens with a similar value because it allows trades with very low slippage.
In fact, 25.5% of 1inch aggregator volume was routed through Curve this month.
/3 Also, the popularity of Curve significantly increased after the launch of $veCRV tokenomics.
50% of all fees are given to $CRV lockers.
More than that, veCRV holders can vote on pool emissions.
So some projects decided to bribe veCRV holders to vote for their native pools.
Synthetix is defined as a decentralized synthetic asset issuance protocol.
So Synthetix allows the creation of synthetic assets(Synths) without being backed by the original asset.
But why would someone use a synthetic asset? 🤔
@synthetix_io /3 Here are the top benefits of the Synths assets:
- you can hold a synthetic token that tracks the value of any asset(AAPL, oil, S&P 500, EUR, BTC, etc.)
- whales can do large swaps with nearly 0 slippage