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Liquidity providers and degens if you’re tired from impermanent loss affecting your yield, SmarDex could be your solution.
This is also a good alpha, because:
- SmarDex is the first (👆) protocol to solve impermanent loss!
- They have good tokenomics. ⚖️
- They’re revolutionizing the DeFi space!
Let’s dive deeper!
You get exposed to impermanent losses when providing liquidity on:
The numbers or value of your tokens change based on their volatility. If you want to know more about impermanent loss, check this article.
SmarDex has managed to turn impermanent losses into gains.
The SmarDex algorithm is based on 2 years of research, where:
- It uses a modified constant rule instead of a constant product (k) like in Automated Market Makers.
- Meaning: It instantly provides the best swap by readjusting the pool’s balance.
SmarDex essentially focuses on:
- fixed supply incentives
- valuing each remaining token
- increasing users’ purchasing power
Their source code is protected to prevent copy-cats. And they reached $15 million total value locked (TVL) in the liquidity pool in 3 days! Now they’re at $32 million and going up!
- They provide swap protocol for 0.07% fees with low slippage.
The 0.07% per swap is goes between between the liquidity providers and stakers for rewards. So 0.05% goes to liquidity providers, and the rest 0.02% gets converted to $SDEX then distributed as staking rewards.
- Their gold feature — liquidity providing.
The earnings for stakers are from protocol fees and farming rewards.
It’s an ERC-20 token that runs on EVM. It’s only used for staking and rewards.
They recently announced when they go multi-chain, some of the supply will be burned based on each transaction on the other chains. This makes $SDEX become a deflationary token.
First chains that were announced are Polygon $MATIC and Arbitrum $ARB.
Blockchain integration is expected by end of June 2023.
- Total supply: 10 Billion
- Circulating Supply: 6.4 Billion
This indicates that 64% of supply is out.
There’s a 36% difference, which means we can expect a low-moderate inflation.
♦$SDEX SmarDex Distribution
- 50% Liquidity Pool
- 37.5% Long-term Farming Yield & Staking Rewards
- 12.5% Boost period Farming Yield & Staking Rewards
There are no locked coins and nothing for the team!
1. The 50% Liquidity pool
The liquidity pool started with 5 billion $SDEX tokens plus $500,000 USDT which made $1 million USD at the time.
It has a 2.5% weekly withdrawal rate
2. The 37.5% Long-term Farming Yield & Staking Rewards
The distribution adjusts based on time and amount in circulation.
The farming rewards here are for liquidity providers and stakers.
3. 12.5% Boost period Farming Yield & Staking Rewards
It was a 4 week period dedicated to incentivizing LPers to use SmarDEX.
1,250,000,000 SDEX tokens were rewarded!
This is not financial advice. There’s a risk for every move you choose to make with your money! Please make sure to DYOR! If you enjoyed this, share it with your friends, & don’t forget to follow me here and on Twitter @ Cryptowrit3r! Subscribe to my Substack, where I’ll be sharing weekly crypto updates every Sunday!
Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing any of your money, and stay up-to-date with all crypto regulations within your jurisdiction.
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