Hello Based Community! We are glad to announce a quick overview of our BASED DEX (Decentralized Exchange) launch!
We wanted to highlight some basic points on why we decided to introduce our DEX:
To benefit our ecosystem by creating a stream of revenue, meaning creating constant buy pressure for our ecosystem tokens (e.g. BASED, OBOL) using generated fees.
How are we different from other exchanges?
We are introducing a progressive discount system depending on user’s holdings.
We strive to help protocols generate income by applying tiny amounts of tax to their existing tokens, whilst providing very low transaction fees (0.1%), we help increase liquidity and stability of price on partner tokens.
Extremely low trading fees, incentives on holding X amount of tokens while still trading those tokens, partner relationships and future developments.
Lets dive into some of these points.
Based DEX will become the first revenue stream for Based Labs by generating fees.
While our fees are very low, we tend to attract more trading activity to our DEX by incentivizing it with random bonus periods, discounts based on user holdings, new partnership deals.
Our DEX will have 2 main sections: tokens with tax, and non-taxed tokens, such as stable pairs & native token pairs (FTM in this case).
Based Labs will be allocating this revenue primarily to creating a deeper liquidity for our ecosystem tokens, as well as buy backs.
Progressive discount system is a tool that automatically lowers trading fees and tax for users that hold a certain amount of certain tokens (e.g. Based Holdings) in their wallet.
We have set up a system where we are able to add new tokens to Based Holdings and set custom discounts for amount thresholds.
Example: Based Holdings discount system is set to this:
User Holds > 1000 $BASED — 1% Discount
User Holds > 500 $SMELT — 0.5% Discount
$SMELT has 10% sell tax, user has 1800 BASED tokens and 540 SMELT tokens, he/she/it wants to sell 300 SMELT, at this point cumulative discount is 1.5% on this trade => sell tax is 8.5%. Next trade this user will not have > 500 SMELT, meaning user will trade at 1% discount only (9% tax).
This small but powerful tool will enable investors to benefit from holding Based Holding assets at all times to gain better trading conditions (entry and exit points into trades).
Our DEX contract is able to onboard any tokens and apply custom tax to buy/sell transactions, giving an opportunity to other protocols in the space to benefit from revenues as well.
How is this going to work? Is the end user paying more tax? What’s the benefit from this, you may ask?
Here is a short example on how this will work:
Based Labs onboards protocol X as a partner, we add liquidity pairs to our DEX, set up custom tax that protocol X wants to apply to its tokens.
Protocol X incentivizes liquidity providers to create liquidity through our router, we can add additional perks and incentives to LP providers on this new pair. By doing so, Protocol X starts generating revenue from tax which they can circle back into incentivizing their LP providers or increase burns, do buy backs to support desired price of their token, or utilize however they see fit.
These features will help Based Labs as a project to acquire more partners and deepen liquidity on all pairs on our Based Labs DEX.
Adding tax to tokens is not often perceived as a positive for end users, but it provides more stability, growth of your favorite project and positive price action.
At the end its a choice between having no tax on a token or having a small tax that comes with lots of benefits and stability.
As an additional perk, our upgraded farming pools will have an option to give receipts to partner pools as well, which is a topic for another article….
To celebrate our DEX launch we have prepared some BASED news for our ardent & faithful community.
Regarding our own tokens and pairs, we are happy to announce that we will be adding liquidity to BASED-TOMB, BSHARE-FTM, OBOL-FTM, SMELT-FTM pairs to our DEX.
We will incentivize BASED-TOMB and BSHARE-FTM pairs with USDC rewards!
Autocompounders will be in play and in this case they will only apply buy pressure on either asset.
Incentives on our pairs will be low at the beginning and will increase with generated revenue from different streams of income.
We will incentivize OBOL-FTM and SMELT-FTM pair with existing SMELT rewards that are still in emission phase.
Single staking will be reintroduced to BBOND holders as well, paying with USDC rewards!
By introducing stable rewards to our pairs we aim to increase liquidity on our pairs, let autocompounders actually bring positive price action to our tokens, and ensure our community members can farm with peace in mind.
As always, stay tuned to the socials to keep up to date, like & share to help spread the news frens. Socials & links here: https://linktube.com/basedlabs
Stay $BASED and $SMELT $OBOL