JulSwap DEX Liquidity
To attract more Liquidity to the JulSwap DEX
What happens with the JULD Tokens which are remaining from the Swap Tokens?
We have 800 Million JULD tokens and 700 Million JULD will be deposited into the Swap contract and every user can deposit their old JULD into the contract and receive the new JULD (1:1). The remaining amount between 800 Million and the amount which gets deposited from the Holders will be transferred 3 months later to the Lockup Contract which is controlled by the Governance. The remaining 100 Million JULD will be deposited directly into the JulSwap DEX Staking Rewards Contract.
What is the JulSwap DEX Staking Rewards Pool?
The JulSwap DEX staking rewards pool is controlled by the governance which means every week the contract will release a fixed number of JULD tokens into whitelisted LP staking contracts to increase the Liquidity and the trading volume on the JulSwap DEX.
Every 7 days the total amount of JULD which will be injected into the staking reward pool will be reduced by 1% to make the rewards more rare over time.
How does the JULD from the JulSwap DEX Staking Rewards Pool get released?
The JulSwap team will whitelist trading pairs and the Governance (vJULD Holders) can vote how much from the total pool gets distributed into the different whitelisted trading pairs. Normally, the pool with the most staking rewards receives the most attention.
The JulSwap Team will whitelist the following contracts to start with:
- JULD/BNB
- BNB/USDT
The JulSwap Team can list or delist the different projects from the whitelist.
What is the Governance incentive to vote?
Every JulSwap DEX pair creates trading fees and these trading fees will be distributed to the voters based on their voting weights, which means if you vote wisely you earn more as a voter. The traders pay in total 0.25% trading fee on the JulSwap DEX and 0.175% are deposited into the Voters earning pool. The remaining 0.025% are distributed directly to the LP Providers as additional support and 0.05% are used to buy back JULD and to burn it.
All trading fees for the incentive will be converted into JULD and the voters will receive the voting rewards in JULD. If the trading volume on the whitelisted trading pairs is higher the amount which will be distributed will be higher as well.
Example: If 100 people voted in total with 1,000,000 Votes and 100,000 votes are from you, you will receive 10% from the incentive assigned trading fees. If the fees are 100,000 $ from the previous voting cycle you will earn 10,000 $ for your vote.
How are the voting weights calculated?
The Voting happens in vJULD tokens which you can only receive while locking your JULD. If you lock your JULD for a longer time frame you get another ratio of vJULD tokens.
You can lock up your JULD for up to 4 months:
1 JULD locked for 1 month = 0.25 vJULD
1 JULD locked for 2 months = 0.50 vJULD
1 JULD locked for 3 months = 0.75 vJULD
1 JULD locked for 4 months = 1.00 vJULD
With this mechanism we reduce the active circulation supply and you only can get a share of the trading fee from JulSwap DEX and the whitelisted pairs if you hold vJULD.
How can some new project animate the vJULD holders to vote for the new project to get whitelisted and to receive a bigger share of the LP staking rewards "BRIBE"?
If any Project is interested to get their trading pair whitelisted for the LP Staking Pool rewards the project has two options:
- Buy enough JULD, lock it and convert it to vJULD to have enough voting power to support the decision
- Initiate a Airdrop to the voters called Voting Airdrop, which means the project team can deposit their own Tokens or any of the whitelisted Tokens into the Airdrop Voting Pool, which distributes the amount to the vJULD holders who voted for the project to receive (more) LP staking rewards.
For how long do we have Rewards for the JulSwap DEX staking Pool?
We calculated the amount based on a total 200 Million JULD distributed over 5 years. For now we’ll use 100 Million as described in point 1 but if we have remaining JULD in the Swap pool we have the option to open a proposal where the Governance can vote to refill the JulSwap DEX staking Pool.
Calculation Sample:
Do we have JULD inflation or deflation?
We have a deflation model because we do not mint new tokens and we burn tokens as a part of the JulSwap DEX fee.
JulSwap DEX Liquidity ProviderWhy will it be lucrative for you as liquidity provider?
If you provide liquidity for the whitelisted (DEX Staking reward pool supported) trading pairs you earn staking rewards in JULD. Additional you can earn 0.025% of the volume as Fees, partially based on your provided liquidity; Which means if you provided 100% from the available liquidity on this pair you get the whole 0.025%What are the risks for liquidity providers?
Impermanent Loss
For liquidity providers on JulSwap DEX, it's important to be aware of the risk of impermanent loss. This occurs when a token's price change causes the liquidity provider's share in a pool to be worth less than the present value of their deposit. While this loss is temporary and can be recovered if the token pair returns to its initial exchange rate, it can be especially risky during times of high volatility. You can read more about impermanent loss here, or watch this video.
Last modified 14d ago