Maximum Farms on xExchange should be paired with MEX not EGLD

So, i have been looking at multiple Dex’s and one thing i understand is the basic demand for a Dex token comes from the Dex itself. That means if you have multiple farms in a DEX which are related to the DEX token (MEX) then the individual who is looking to earn liquidity rewards will need to buy MEX and then add it in liquidity pool. This way these multiple pools will create buying pressure for MEX and MEX will get a true utility.

I also understand the liquidity pools which will be created will be MEX/Other token and this will cause an issue when someone comes for a swap. Solution for this should be when someone comes for a swap for ex Swapping EGLD to UTK. There should be 2 transactions first converting EGLD to MEX and then swapping MEX to UTK from their respective liquidity pools. This will also make sure more fee is generated for liquidity providers and more MEX is burnt.

These steps are intended to create an actual utility for MEX token, not XMEX as we all know XMEX has its own utility of metabonding, fee and boosted reward. More farms with Unlocked MEX will make sure the actual MEX token gets it’s recognition. Also i guess the block rewards are not very steep right now and creating buying pressure through liquidity buys will reflect in price and the impermanent loss which can occour can be countered.

Also voting mechanism should be there so XMEX or MEX holders can vote to which farms maximum rewards should be allocated. Because XMEX/MEX holders vote obviously MEX farms will get priority of highest APR and people will be more attracted towards them.

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Hi @ciendios

Welcome on the xExchange Agora!

If I am understanding correctly, you suggest 2 things:

  1. To have a maximum of pairs paired with MEX instead of EGLD or USDC.

  2. To force as much as possible swaps to go through MEX pairs.

Please let me know if I have not understood correctly.

The upsides I see to these points are the ones you mentioned, i.e. potentially more fees and potentially more utility for MEX as it can be used to provide liquidity in more pools.

But there also might be downsides to these points:

  • providing liquidity with MEX + other token is more risky than EGLD + other token or USDC + other token, and so liquidity providers might provide less liquidity, which means more slippage, less swaps, less volume and less fees.
  • forcing as much as possible the swaps to go through MEX pools, will incur higher swap fees for people, and so less volume and maybe less fees overall.

I am not saying the downsides overweight the upsides. Just saying there are downsides in addition to the upsides. And this is a subject that needs to be carefully thought of.

Please share your thoughts on the things I mentioned if you have any :pray:

A simple explanation of this could be there should be more farms which are related to MEX/XMEX. Right now the only option we have is of EGLD. People can use their locked liquidity more if they have wider options to use XMEX in xexchange. Right now it seems there aren’t just enough options and not much to do in xexchange.