Proposals to increase xExchange profitability

financefreedom
Thu, 04 Apr 2024 09:31:03 +0000
General Discussions

Hello guys,

I’m anticipating the launch of xExchange V3 and as we near it, i would like to propose something for MEX/XMEX and xExchange business model, wich is in my opinion the next thing to upgrade as soon as possible !!!

Tell me what you think about it,

What we have currently :
_Swap fee is 0.3 %
_AMM
_XMEX Unlocking is energy based → 80% fee for 4 years locked MEX
_XMEX earn 0.05 % of all fees
_LP earns 0.2 %
_Rewards in XMEX locked 4 years with different batches each months
_No control of the emission for MEX
_Boost APR for farms with XMEX
_Emission of MEX of around 260k MEX per block
_No DAO (Almost)
_No Bribes
_No comprehensive analytics
_No perpetuals
_Metastaking
_Metabonding
_Automatic and permissionless listings pairs

What we need to have :
_Swap fee need to be volatility based (Many studies have proved it works way better and make capital way more efficient !!) low volatility → low fee / High volatility → High fee (range around 0.1% to 1%)
_Liquidity needs to be concentrated in a tight range and need to be managed accordingly ! Have a team on this monitoring the situation at all times or make a rebalancing bot behind the scene wich will apply a strategy to rebalance when certain treshold are met and rebalance the pool !
_MEX locking 4 years is too long → reduce it to 2 years or even 1 ! XMEX removal fee need to be reduced from 80% to 15-20% max to reduce friction and to stop rebuting investors to invest in MEX.
_XMEX earning 16.66 % of all fees is ok IMO but the 0.05% actually burned could be offered as rebase to XMEX holders to prevent dilution of their capital instead of burning it —> Then they should earn 33.33 % of all fees !
_LP earning should be kept as it is but since the swap fee will be changed, the LP earn 66.66% of fee from the farm
_Boost APR is OK as it is and give more utility to MEX and ratio for the boosting APR should maybe studied to incentivize users to boost by not asking them for a huge amount of XMEX either. A good balance between those parameters is the way.
_Rewards distribution needs to be unlocked ! Stop preventing people to sell → it is actually doing the exact opposite effect of what was intended → instead of selling they just don’t invest in MEX wich actually hinder xExchange in its growth → I hope you should have realised by that time (sorry to be harsh on this but trust your community please ! We are not dumb mercenaries we won’t sell if xMEX is sought after and is appealing for investors !)
_Give control of the emission for MEX on farms → Give Voting power in proportion to the XMEX you have → Make us able to see the fees earned by a particular farm and liquidity pool to permit us to vote for this farm if fees are attractive in a said EPOCH.
_Emission of MEX should be more understandable and permit us to see how much MEX is going to be emitted per EPOCH → To anticipate how much potential selling pressure we will have and act accordingly ! On this you can even extrapolate and show us how much MEX gonna be emitted in a year.
_DAO for proposals like xEIP should have a little corner on xEXCHANGE to let users know that you can propose whatever you want.
_Implement a bribe system to permit projects to incentivize liquidity providers and rewards XMEX holders and voters
_Implement a charting tools with tradingview charts (powered by e compass for example) on each pair
_We need more analytics and vision on the fees earned on xExchange/ the bribes provided/APR generated per epoch for XMEX holders/etc …
_Implement a perpetual exchange a bit different than ashswap who is relying only on USDC for collateral. Take a leap and implement a LPMEX collateral with bluechip ESDTS (MEX/EGLD/BTC/ETH/USDC/USDT/USH ?) → In a practical term the user will deposit any of those asset in the perpetual platform and will be able to trade with them directly ! All operations for token swap or borrowing or hedged trade will be handled behind the scenes !
Implement a vault wich will be funded by all of those assets and where you gonna get it funded by borrowing or funding/deposit/withdrawing fees and loss of traders fees (You can even redirect of portions of the fees generated to XMEX Holders like ashswap)
_Metastaking is great as it is, no need to touch it IMO.
_Bribing should replace metabonding in my opinion or it could be rebranded as a tool to let users learn about the said project (like you’re doing with V3 i think no ?)
_Automatic and permissionless pairs are a great tool and shouldn’t be touched also ! Maybe write some tips contents for pool creators to let them know how the AMM works and permit them to set date to enable swap or edit fees earned by the pool.

I Know all my propositions are a great deal of works and infrastructure behind may be hard to replace or adapt.

Anyway please don’t try to overcomplicate or use any overextended schemes ! USE what is working now and push harder for more research after !

Also if you implement those changes, please make it as fast as you possibly can ! Clock is ticking and the current cycle has already started ! Take a leap and try to grow xExchange revenu in the most efficient way possible !

Hope you like what i wrote !

Tell me what you think about it !

Thanks for reading if you make it this far.

Regards.

A concerned first class citizen !

3 posts - 3 participants