[xEIP Draft] Rethinking (x)MEX

xEIP Drafts
21

@financefreedom

  1. for the last time please stay on the topic, which is the xEIP

  2. If I lock tokens, I do not want to “exit”. I lock them because I know I will actually lock them for many years. The fact that we are the only DEX that allows early unlocking is unique. In fact, if anything, it should be removed, not lowered to 15-20%. There should not be the possibility to unlock. But because I am trying to build on top of the current tokenomics in my proposals, without changing the existing tokenomics, I am not talking about removing the unlock option, even though it definitely should be removed.

  3. 15-20% is way too little. You get insane APR boosts on the Farms, which give you 160% instead of 30%. And then you only want to pay 15% to unlock your xMEX, even though you enjoyed all benefits at full and earned much much more through this? Nuh uh. This is a “the house always loses” game. But DEXes and especially Perps should be designed (and are designed) in a way where “the house always wins”. By allowing users to unlock xMEX at a low penalty, while the users got to enjoy all those super high rewards is literally making the house lose, all the time. This will KILL the MEX price within weeks if you allow this to happen. This is the worst idea we could put to a governance vote and this can NEVER pass. Otherwise MEX is doomed for real.

  4. Yes people are greedy and always will be - and if they decide to lock for 4 years it’s their decision, their responsibility. Again, all other DEXes don’t even allow early unlocking at a penalty. Only we do it. I think it was done because people became tired of locked tokens after Maiar Exchange and the Foundation had to give a way to unlock the tokens somehow.

Finally:
You seem to not really understand the ve-tokenomics model. Otherwise you would not propose this. Users don’t invest money and hope to make a profit when the tokens unlock. No. Users buy tokens and lock them to get benefits. It is an investment to improve their overall DeFi game and strategy. In fact, everyone who puts money into DEX tokens and locks them for 4 years (and knows what they are doing) is not expecting to get them back. They locked the tokens to get the associated benefits not to hopefully have made a profit with the locked tokens after 4 years. In fact, people re-lock them all the time in order to get the max benefits. This is how the model works. You want the max benefits, thats why you lock for the max possible time and continously re-lock the tokens so they stay locked forever.

This is how this model works and is intended to be used.

I am done here, I hope you are too with this. You can comment of course, but PLEASE stay on the topic. Nothing of this has to do with xEIP-1

1 Like
22

Based on the proposal I see the following order of progress required.

Features to Progress

  • xExchange v3
    • Complete the core of v3 shared by @lucaswillems.
    • Pause v3.1 - Metabonding is not urgent / critical
    • Progress v3.2 - Nice UX improvements
  • Adjust the governance mechanism to support a xMEX ve-tokenomics model, i.e., linear growth of voting power. Or split the governance of protocol direction and DeFi related governance - potentially more complicated than a single governance approach.
  • In parallel, open the following features up for multiple or one governance votes:
    • Remove locked tokens from LPs
      • Need more details from the team on the different approaches possible or impacts.
    • Implement farm weight voting
      • Get the community activity in influencing liquidity rewards
    • Implement proposal voting
      • Further decentralization
    • Implement xMEX transfer whitelist governance
      • Enable more builders and interoperability
2 Likes
23

For first, are you a team member of xExchange ?

Selling against a penalty isn’t unique, check THENA finance for example.

You will see that you can unlock your veTOKEN on another app (Liquid Driver against a 15-20% penalty for exiting veTHE locked for 2 years).

Check the metric of THENA and tell me they are doing bad !

They get a volume almost X10 of xExchange while having around 2 times less liquidity available.

They are outpacing in efficiency pancakeswap on almost all metrics compared to their TVL, that is also why pancake swap decided to change its model to ve(3:3) earlier in 2024.

Of course this is a different chain and there is other things to take into account but they clearly prove it is working right now and even more because i have seen them from their inception since 01/2023 and how they just grow their revenu step by step.

Now guess what … they are actually profitable and sustainable, buyback of their tokens is handled by another app each cycle by all fee generated ! (For us we gonna have jewelswap and autoscale wich will gonna help with this but it’s another debate)

Check ramses, retro, velodrome, aerodrome, lynex, etc … in fact all of the ve(3:3) DEX out there.

I don’t agree with you on this at all 15-20% is working and can be implemented and is less scary and more appealing for investors.

To me you are thinking that by lowering the penalty many people will exit and kill mex, this is not true at all ! you all have to stop with this thinking it is false !

What is gonna get mex on top is flexibility and allowing inflows and outflows of capital almost frictionlessly !

Bad epoch for fees and bribes → Some XMEX holders out for the next epoch → Paying 15-20% unlock fee → Prevent hurting holders too much → Selling pressure is trading pressure → So more volumes and fees generated → APR go up for the next epoch rewards → People lock more MEX → Repeat !!

This is a flywheel and bring capital frictionless as it can possibly be ! And this is what a DEX want, creating more volume, more trades, more usage !

24

L M A O. No.

So another app is buying them from you. So you arent actually unlocking them.

You just said that this is another dApp that buys these tokens from you for a discount. No, unlocks at this ratio are not possible. Do the maths. Imagine someone invests 100$, farms a lot, then unlocks, loses 20$, but doesn’t matter because he has been able to farm a lot more $ thanks to the farm boost.

Not what I said.

I am not thinking that.
The only issue with this is it opens up a window of abuse as I explained 2 times now.

25

Doesn’t matter at all for everyday users and this is the focus here, being another app who buy your bag or another person (if you sold your position on secondary markets as an NFT for example) or directly in xExchange is the same, you will always find someone to buy if the exchange is successfull and appealing !

Point is, right now it just works and that is all that matters !

If i saw worst on another app than this, why would i want to invest in it when i have less constraints over another exchange ?

It don’t opens up a window of abuse, you still loose $ if you exit how can you not see that ?

Market will always adjust if APR is too high and gets farmed and got exited by investors right behind.

You think high APR is sustainable for abuse ? No it is not, money will always tend to flow where it can thrive the most, meaning high APR will always go down.

Try to enter just to farm one epoch on those DEX mentionned in my last posts, you will never get 15% of what you just locked for rewards.

And if you do that means that the exchange has gotten insane volume metrics and it will offset any person wanting to exit, and by all means tell me who would like to exit an exchange wich can give 15% of your position on an epoch in fees ? No one.

At most in an epoch you’ll probably have just around 1-5%, but when there will be way more adoption of course APR will go down.

What 15-20% unlock creates is just more trades/volatility between the said token and that is A GOOD THING. A GOOD THING. A GOOD THING.

26

That’s basically more or less what JewelSwap, VortX DAO and Autoscale are doing/will be doing.
If JewelSwap would have gotten the whitelist already for xMEX transfers, then you could sell 4yr locked xMEX to JewelSwap at 50% fee instead of 80% right now.

It doesn’t open up a window for abuse if you are selling the tokens. It WOULD open a window for abuse if you were actually unlocking the tokens.

What you want is other apps buying your tokens, not unlocks. Then you should be in favor of the point 3 of this xEIP-1 proposal, since DAO aggregators will start the Hunt for xMEX once xMEX transfers are live and also the other stuff is implemented which makes them want to own as much as xMEX as possible

2 Likes
27

Yes i hope they will do something like that, but i also hope they will be transparent about how they do it but that’s another debate.

Hmm maybe you have misunderstood me, I am clearly in favor of what you’re proposing, in fact i am asking even more :smiley:

Hmm ok basically i get what you mean, i used a wrong word by saying unlocking earlier (You probably tought that by unlocking, some people could actually make a supply shock and manipulate price token with the liquidity availabe no ?)

What i want is not app buying my tokens, what i want is the freedom of having the possibility to exit a position whenever i want but not at a 80% discount (Imagine you need that money for x real reasons, then exiting at 15-20% discount is mentally way more doable and acceptable than exiting at 80% discount).

1 Like
28

This will be made available by JewelSwap, VortX Dao, maybe even autoscale with their respective xMEX derivatives. The open market will decide the value of xMEX.

Right now, IF JewelSwap had the xMEX whitelist, you could mint JWLXMEX with your xMEX and then sell xMEX on the open market. You will only lose about 50% instead of 80% right now on xExchange because JewelSwap’s derivative seems to see some demand on AshSwap.

This is how it works everywhere. This is why derivatives and DAO aggregators create really cool opportunities and this is why so many are building on top of popular DEXes (no. 1 example, Curve).

2 Likes
29

I agree 50% is a progress that’s for sure !

For now i don’t plan to sell any tokens, i just want to have the possibility to do it later at a lesser cost (i’m staying with my numbers lol 15-20% max otherwise i won’t sell), but even then it will depend on how xExchange will drive adoption and volume/fees and proof of sustainability.

What would be great and wouldn’t require too much time to implement is having better analytics aka emission of mex per EPOCH with value in $ adjusted with price of MEX and protocol APR (but maybe for now it’s not very nice to see those numbers ahahah :rofl:).

1 Like
30

Check out my new proposal if you want.

2 Likes
31

Down to 29% difference. Xmex to mex on jewelswap

32

16% only now wow can’t wait

1 Like
33

The reason for the close parity between JWLXMEX/MEX currently is because JewelSwap has yet to be whitelisted, so the only way to really access JWLXMEX is to buy it. As soon as whitelisting happens they will rapidly diverge again with loads of people looking to dump their locked liquidity. I don’t see the demand for JWLXMEX outstripping this.

Where the ratio ends up will be up for the market to decide, but I speculate it will be around 3:1 to 2:1. I don’t understand (nor do JewelSwap themselves) why the xExchange team hasn’t approved whitelisting yet. Stalling on things like this just hinder progress.

3 Likes
34

Yeah i know, and same. Anyways, this is this secondary market @financefreedom was thinking of i think, to be able to sell your xmex to another app for a better rate than the official unlock rate.

That’s how all the dao aggregators on Ethereum for other DEXes do it too.

But let’s see. All of this is very interesting and exciting.