Emiswap distributed 15k ESW to new community members, a recent update reveals.
The protocol is the first Automated Market Maker (AMM) DEX with NFTs incorporating the ESW token to compensate for Gas fees. The campaign attracted over 10,500 entries, highlighting the popularity of DeFi and how participants yearn to trade and invest cheaply.
The Gas Problem in DeFi
In Early May 2021, the average Gas fees in Ethereum rocketed to over $69.
It meant a poor user experience, discouraging DeFi users from posting transactions since they had to pay more. Unlike simple on-chain transactions, DeFi swapping or staking, for instance, involves the deployment of complex smart contracts. The more complex a smart contract, the higher the fee.
At peaks, opening and exiting positions in a swapping operation was upwards of $100.
What is Emiswap?
Emiswap describes itself as an ecosystem of meaningful interactions that integrates NFTs and gamification. The solution is the first DEX in the broader EmiDAO ecosystem that is first launching on the Binance Smart Chain (BSC) platform.
The BSC is a product of Binance, the world's largest exchange by client count. Differentiated from Ethereum, BSC is interoperable, scalable, and is cheaper to transact in. The integration of NFTs and gamification in a DAO-powered ecosystem makes Emiswap more interactive.
Emiswap AMM uses Moonswap
At the center of their AMM and swapping operations is Moonswap that has virtual balances. The protocol is an improved version of mechanisms priming Uniswap v2.
Accordingly, Moonswap, unlike competing AMM iterations, safeguards against front-running. Out of this, liquidity providers (LPs) won't forfeit benefits from brief periods of market slippage. At any time, LPs will capture profits that would, in other AMM systems, have gone to arbitrageurs.
As such, Emiswap, because of their use of Moonswap, can effectively maintain most of their slippage revenue within the pool due to their virtual balances that automatically balance for different swap directions.
The Bonus System for Early Swappers and Liquidity Providers
To incentivize participation, Emiswap has a bonus system for adopting liquidity providers. At the same time, it shall compensate 100 percent for Gas fees paid for any operation on its exchange using ESW token.
The first liquidity providers stand to earn 10X rewards from the 11th to the 100th day after launch. 30k ESW is proportionally distributed among LPs for one million DAI trading volumes. Meanwhile, swappers will receive 16 ESW for every personal turnover above 1,000 DAI.
Running concurrently will be another reward system. Between the 11th and the 40th day after launch, Emiswap will distribute an additional 6,150 ESW tokens after every 1k blocks to liquidity providers proportional to the amount staked.
NFTs and Magic Cards to Reward Liquidity Providers, Emiswap Targets $100 Million TVL
Emiswap also has an NFT program using Magic Cards. Through these non-fungible, non-exchangeable items, users can farm, sell, or use them to fight in tournaments. Receivers of these cards automatically receive a yield-boosting benefit.
It is a gamified feature with practicality that makes Emiswap a blockchain entertainment center, encouraging interactions.
In their plans of growing their TVL, Emiswap is centering NFTs at the center of their efforts. Liquidity providers who help the project cross every key milestone are rewarded with Emiswap's limited-edition NFT Magic Cards.
There will be six categories of Magic Cards with varying rarity. For instance, there is only one mythic card, 40 Epic cards, and 500 ordinary cards.
The protocol plans to release 100 cards (1 Legendary, 4 Epic, 15 Rare, 30 Uncommon, and 50 Ordinary) in limited edition once every $10 million milestone is reached.