SINGAPORE / ACCESSWIRE / September 17, 2020 / The release and development of hundreds of projects in the DeFi (decentralized finance) sector fostered an explosion in locked value which reached around 10 billion USD at its highest point. Though some DeFi projects show novel and well-designed interfaces, the underlying weaknesses remain, such as slow speed, low usability, centralization, lack of cross-chain support, absence of order books, imperfect DAO mechanisms, etc.
First Cross-Chain Swap on Ontology
ONTOSWAP, the first cross-chain decentralized exchange on Ontology, aims to solve the existing issues in the DeFi sector by providing instant transactions, lower fees, cross-chain asset exchange, improved user experience, and many other benefits. Moreover, the creative dual token economy model will incentivize users to provide liquidity and trading volume, thus facilitating the sustainable development of the ONTOSWAP ecosystem. In the future, ONTOSWAP could be combined with other Ontology DeFi applications, such as Wing, to improve Ontology's DeFi ecosystem.
Absolute fair DeFi mining
In the market, different DEXes are coming up with their incentive mechanisms, such as SushiSwap, which offers SUSHI as an additional reward for liquidity providers. However, after analyzing SushiSwap's token economy, several common flaws arise. First of all, SushiSwap's founder keeps 10% of each SUSHI distribution, a time bomb for the sustainable development of the ecosystem; Secondly, it messes up the DAO and utility tokens, which could destroy the entire ecosystem. Last but not the least, some of the projects will use their existing token A to pre-mine the other token B, and sell them off once B is listed on exchanges. What's worse, people even don't know how many token A they have held since it is already circulating in the market.
Thus, the only way to solve this dilemma is to apply dual tokens in the ecosystem. ONTOSWAP creatively applies a dual token model (ONTO and YFO), of which ONTO is the utility token in the ecosystem, while YFO is the governance token in the decentralized autonomous organization. The ONTOSWAP DAO (YFO) token has no team reserve, no VC allocation, and no pre-mining, and users can stake ONTO to mine YFO.
In this way, the DeFi mining of ONTOSWAP will avoid the unfair flaws in the existing protocols. YFO can only be mined out with ONTO, and the team or any other entity can't have any ONTO in advance. Everyone has equal right to join the mining with buying ONTO via the token sales or secondary market.
Value of ONTO and YFO
Unlike most of the DeFi tokens which actually don't have real value support, both ONTO and YFO will be backed by rigid-demand applications. More specifically, ONTO and YFO are expected to have the following features after ONTOSWAP is fully launched.
ONTO is expected to have the following features:
- 50% net profits will go to ONTO buyback and burn;
- 50% net profits will be rewarded to ONTO holders;
- Holding ONTO gives one privilege to enjoy a 50% discount off all fees;
- Users can enjoy double rewards when mining YFO with ONTO;
- Users can enjoy ONTO rewards while providing trading volume to ONTOSWAP.
YFO is expected to have the following features:
- Only be earned through providing liquidity to the pools;
- Voting rights in the ONTOSWAP ecosystem to determine project development;
- Can be used to mine ONTO;
- Governance frameworks;
- Fee allocations;
- Value-added incentives;
- Pool additions and amendments;
- Protocol economics.
Ecosystem Incentives
Traditionally, liquidity providers can only share a small portion of the pool's trading fees when they are actively providing liquidity. Once they have withdrawn their portion of the pool, they no longer have any rights in the ecosystem. With ONTOSWAP, one cannot only earn their share of the trading fees but also earn rewards in the form of ONTO tokens. Moreover, as an early provider of liquidity, you become a significant stakeholder of the protocol and enjoy governance rights through YFO tokens.
In addition to liquidity mining, users can also enjoy ONTO rewards by providing transaction volume in different pools. The transaction fees you pay will be paid back in the form of ONTO. The more you trade, the more rewards you will get. Also, half of all net profits in the ONTOSWAP ecosystem will be proportionately distributed to the ONTO holders.
The remaining half of net profits will get converted back to ONTO through ONTOSWAP and will be burned as part of the ONTO deflation scheme. ONTOSWAP will be the first decentralized exchange with a complete referral program.
About ONTOSWAP
ONTOSWAP, the decentralized exchange based on Ontology, will unveil a fully functional decentralized exchange. Thanks to the high-performance underlying technology of the Ontology, ONTOSWAP will provide its users with trustless cross-chain trading, all at the best speed and price.
About Ontology
Ontology is a high performance, open source blockchain specializing in digital identity and data. Ontology's unique infrastructure supports robust cross-chain collaboration and Layer 2 scalability, offering businesses the flexibility to design a blockchain that suits their needs. With a suite of decentralized identity and data sharing protocols to enhance speed, security, and trust, Ontology's features include ONT ID, a mobile digital ID application and DID network used throughout the ecosystem, and DDXF, a decentralized data exchange, and collaboration framework.
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SOURCE: Ontology
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