🏆Welcome to DracoDex
Brand new emission strategy & fully decentralized order book
DracoDex is the first fully decentralized order book DEX backed by semi-stable token $DRACO
Our mission is twofold. Firstly, we're dedicated to resolving a significant, enduring issue that has troubled the DeFi community for a considerable amount of time - the notorious liquidity mining death spiral problem. This problem arises when the rewards for liquidity providers are insufficient due to continuous rising circulation , causing them to withdraw their funds. The resulting decrease in liquidity can trigger a downward spiral that undermines the stability of the DEX. Our novel approach addresses this issue, aiming to ensure a stable and reliable trading environment.
Secondly, we're committed to delivering a completely on-chain order book DEX. This feature allows us to provide a more efficient and transparent way of managing and executing trades, providing participants with real-time access to the order book. At the same time, we have designed the innovative DLIA (Dynamic Liquidity Incentive Algorithm) to ensure long-term stable liquidity in the order book. By moving all processes onto the blockchain, we eliminate the need for third-party intermediaries, resulting in enhanced security and trust.
In essence, DracoDex aspires to create a more efficient, transparent, and resilient DeFi ecosystem. We believe that our pioneering approach in tackling these core issues sets a new standard for DEXs and paves the way for a more secure and sustainable future in the decentralized finance sector.
The core design can be referred to in the diagram below.
Emissions will decline 2% every week . As the number of rewards distributed decreases, the degree of inflation becomes smaller. Meanwhile, transaction taxes causing deflation pressure and actual business income drive the growth of RFV (Risk Free Value) to become larger. The protocol will reach a healthy balance, where the real demand of the order book and income will put the platform into a positive cycle. following diagram is a rough demonstration of this process.
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