0Fx Swap: Technical Requirements and Goals

Current Challenges

  1. Single-Usage Liquidity Allocation: Presently, liquidity is restricted to a singular application, limiting its potential utility.

  2. Low Appeal of Liquidity Provision: The current model for liquidity provisioning lacks sufficient incentives, making it unattractive to most users.

  3. Minimal Fee Returns for Liquidity Providers: Liquidity providers currently earn a fee ranging only between 0.3% to 1% on the liquidity they contribute.

Vision

  1. Dual Utility of Liquidity: Strategically utilize liquidity for multiple purposes, enhancing its overall efficacy.

  2. Optimized Liquidity Allocation: Commit 100% of our liquidity to various protocols, thereby significantly improving liquidity availability for market loans.

  3. Rewarding Swap Mechanism: Transform the swap process into a more rewarding experience for participants.

  4. Enhanced Rewards for Liquidity Providers: Introduce additional income sources for liquidity providers, elevating their reward structure.

  5. Increased Liquidity for Lending Protocols: Augment the liquidity available to lending protocols, contributing to a more robust lending environment.

  6. Leading Liquidity Provider Goal: Aim to become the predominant liquidity provider for major protocols like Compound.

  7. Inclusive Onboarding Vision: Attract a diverse range of users with the promise of a rewarding Web3 experience.

Success Metrics

  1. Enhanced Liquidity Provider Rewards: Achieve an increase in additional rewards for liquidity providers, targeting a range of 3.5% to 20%.

  2. Total Value Lent to Protocols: Aspire to lend an amount close to the total TVL (Total Value Locked) across different protocols.

  3. Coverage of Reputed Protocols: Expand our reach to cover as many reputable protocols as possible.

  4. Market Maker Engagement: Attract over 10 principal market makers to utilize our swap for their core market liquidity.

  5. Liquidity Contribution: Aim to provide at least 10% of the total liquidity of a reputed protocol.

  6. Increased Earnings for Liquidity Providers: Elevate the earnings of liquidity providers by a minimum of 3.5% on large cap.

  7. Total TVL Goal: Surpass a total TVL of over $100 million.

  8. Synthetic Volume Target: Achieve a total synthetic transaction volume exceeding $500 million.

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