The Great Initiative of DogeSwap, Making Mining Ecology 100% Decentralized
At present, DEX is one of the most prominent filed in DeFi. After SushiSwap and MDEX, another top-notch project DogeSwap has sparked a heated discussion in the market. Before even opening the liquidity mining, DogeSwap’s TVL has broken $3 million in 18 hours. In addition, the top 10 projects on Huobi global and HECO have been rushing in for collaboration to create liquidity pools, and to layout the 2.0 mining ecology.
What can DogeSwap rely on to gain more market share in the fierce competition among DEXs? At this stage, DogeSwap1.0 has pushed the market to a climax through airdrops of DOG. In the upcoming 2.0 stage, how to break out of the siege again and motivate the enthusiasm of market participation is what DogeSwap should think about.
Compared with other DEXs, what is the difference of DogeSwap mining?
In DEX ecology, in addition to the application for exchanges, the biggest difference lies in interest distribution. Today, let’s analyze the “decentralized” features of the DogeSwap mining ecosystem by comparing the current leading projects on ETH, BSC and HECO public chains.
Compared to the application for transactions, liquidity mining is the core mechanism for the rapid growth of DEX. The core factors that participants often tend to overlook but need to consider the most are as follows:
★ Who can participate in mining?
★ How is the return distributed?
With these two questions, let’s find the difference of DogeSwap mining ecosystem compared to other DEXs.
The Rebel of DogeSwap: complete decentralization of DEX mining rights. The arrival of swap 2.0 era!
1. Who can participate in mining? — — Dogeswap is the first decentralized exchange to apply algorithmic rules.
As long as it meets the opening standard, the mining rights of LP pool will be opened the next day. The specific rules are as follows:
1. One of the tokens in the pool is one of these 5 mainstream coins — USDT, HUSD, HT, ETH, BTC.
2. The TVL of the pool exceeds 100,000 USDT (the value of two tokens added ≥ 100,000 USDT).
3. The daily transaction service charge in the pool exceeds 100USDT for three consecutive days;
As long as the pool meets all 3 algorithmic rules above, a project is allowed to set up a liquidity pool. Compared to the DEXs above, DogeSwap is the first one to achieve complete decentralization. In other words, who can participate in mining? Only the algorithm can decide!
(Example: AS-USDT opens a liquidity pool on DogeSwap, the pool’s TVL is 120,000 USDT, and the daily service charge for three consecutive days are 120U, 150U and 110U respectively. Then DogeSwap will open the LP of AS-USDT to mine DOG, the DogeSwap native token, on the next day. And users can get DOG as long as they hold and stake AS-USDT.
2. What the mining return distribution is? — Dogeswap is the first decentralized exchange to apply algorithmic rules.
The token yield coefficient depends on the service charge of the pool last day. The algorithmic rules decides! To be specific, let’s look at the following formula and example.
Calculation of the token yield coefficient of each pool: It depends on the service charge of the pool last day.
Formula of individual token yield: Individual token yield= staked individual assets /total staked assets in the pool *daily token yield of the pool
Analysis: If the service charge of the last day of LP2 is 100 times of that of LP3, the ,mining coefficient of LP2 is 100 times of LP3. Similarly, the mining coefficient of LP2is LP1’s 10 times.
The reason why projects on SushiSwap and MDEX have to be decided by a centralized organization like a board of directors or a foundation is because the platform wants to avoid bad projects from making a profit, but it also leads to unintentionally keeping projects with potential out of the market. The difference of DogeSwap lies in the distribution of mining return based on the contribution of DEX transaction fee, so as to give full play to the strengths of exceptional projects. The true fair and impartial mechanism of “the more you work, the more you get” is accomplished through algorithmic rules. That’s how 100% decentralized mining is achieved.
Conclusion: What the of V2.0 can bring?
Fair and impartial mechanism for projects and users to maximize their strength: We can conclude from the above that DogeSwap’s V2.0 mining ecosystem is completely decentralized and does not need to be audited by a centralized organization, as long as one’s contribution is in line with the algorithmic rules, one can get more benefits. In addition, any project creating a pool to participate in mining is the party with the greatest advantage and most benefits, because the project does not only embrace a relatively large number of tokens, but also a large community of users. Especially in the first mining period, the project can get higher mining profits to develop the project’s ecosystem, motivate users participation. By doing so, both the project and users can get considerable profits.
The emergence of DogeSwap enriches the development of DEXs and reminds us that DEX is still at a very early stage and there are many possibilities for the future. Let’s look forward to the 2.0 ecosystem and witness the boom of decentralized mining together!
