Announcing: New STAX Token Use Cases & the BLISS Rewards program
We know you guys are patiently waiting for our upcoming stablecoin swap mechanism, so we wanted to unveil a few core components of our…
We know you guys are patiently waiting for our upcoming stablecoin swap mechanism, so we wanted to unveil a few core components of our STAX token use cases in preparation for our mainnet BSC launch of our swap.
In our early beta period, while we haven’t received an audit yet for our swap mechanism, we will give our beloved STAX holders users the exclusive rights to be able to interact with our product in the early stages. Non-STAX holders will not be able to use the product during the beta period.
Those who hold 5,000 STAX (currently $100 USD) directly in their wallets at today’s rate will able to interact with the smart contract in this beta period. As a result, at current liquid supply (tokens not locked), we expect a maximum of 400 available user slots that could participate in our guarded launch. We believe that aligning early token holders interests with those who truly want to try this product out is crucial in our product’s fast iterations and bug fixes and improvements to make this product ready for all of Binance Smart Chain to use. We will always welcome your feedback in improving this product.
We in particular want to give super thanks to users who have already staked their STAX in one of our locked staking pools and our liquidity providers, so all users who are staking or providing liquidity to the STAX/BUSD and STAX/BNB pools will automatically be be able to participate in our guarded launch, without the $100 USD limit. We know many of you users have already been waiting for StableXSwap to launch, and want to reward you all for your patience, so we do not believe that money should be a barrier to participating in StableXSwap if you truly believe in our mission.
We are currently working on a whitelist implementation to be able to track all users who are providing liquidity at a random snapshot in time between this time of post and our launch of our swap product — thus: if you removed liquidity, you will have time to come back in before the snapshot, and if you still have your liquidity in the pools, stay there! You will be counted in. We will monitor for individuals who just put in $0.01 in liquidity to try to get around these restrictions, so and reserve the right to exclude any addresses who are clearly doing things to avoid the rules.
Finally, upon launch, we have tweaked our initial plans for liquidity providers — similar to how Curve has added rewards for long term lockers, we will penalize liquidity providers who do not hold a pre-requisite amount of STAX. Instead, a larger portion of STAX rewards will go to those who stake and also a fee rebate function for STAX holders who trade on StableXSwap. Previously, we discussed a 0.04% fee for trading on StableXSwap.
We’re excited to unveil our new token economic design for participants within the StableXSwap ecosystem.
The BLISS Rewards Program
We will not change the base fee of 0.04% per transaction, but we will however add more detail to the distribution of the 0.04%.
Initially, we thought that splitting the pool of rewards 50–50 between STAX stakers and LP providers would be enough. However, we believe there is an even better alignment of incentives that can be achieved using a slight tweak to this model.
We are instead proposing that 50% of rewards will still go to buying back STAX from the open market and giving out STAX rewards to our STAX stakers. This will continue allowing STAX believers to earn great revenues from their staking as well as provide open market token price support from the token buyback.
However, the LP fees will be adjusted to 20% of the rewards, as LP providers have been earning STAX through mining and accrued trading fees, so they should actually be incentivized to go and purchase STAX to help with governance and participate in staking themselves. In the long term, stablecoin pool liquidiy providers should be incentivized to be the biggest holders of STAX because they are the ones whose interest is derived directly from the product’s success and utility.
What will this remaining 30% be used for?
Many many users in our telegram community has been talking about burns, and so we will take 5% of these trading fee rewards and burn them periodically to reduce circulating supply of the token. It is not a very high percentage, but we do want to experiment and try things to see if they work, and our good friends over at Binance.com have been doing it for a long time, so why not try it out?
The remaining 25% is what we’re the most excited for: providing a rewards and fee discount program for ALL TRADERS on StableXSwap.
Much as BNB provides a 25% fee discount for all users who pay fees in BNB, we will provide a 25% fee rebate for all STAX holders who hold at least 2500 STAX (currently $50 as of time of writing). Thus, if you want to achieve 0.03% fees on stablecoin swaps, the lowest in the defi space on any chain, you will need to hold STAX to do so. The rebate will be returned to you in the form of STAX, as the 25% fees will still be used to first buy back STAX from the open market, before going to distribute to users. Thus, again, more of the fees from the product will provide support for STAX token price.
What happens if you don’t hold STAX and trade? The rewards that would’ve gone to a 25% fee discount will again be used to buy back STAX periodically from the open market. These STAX will be set aside to create a new rewards budget for a STAX bounty program for our top traders by volume, and provide STAX rewards for everyone who participates in trading on STAX. More details on the exact programs and rules will be shared after discussing further on the community. We believe however, that incentivizing our traders to hold STAX will be an incredibly good way to align incentives between STAX holders, traders, and liquidity providers alike.
As such, we will call this the Burn, LP, Incentivize, and Stake STAX program (BLISS for short), in the order of the rewards size in ascending order (5%, 20%, 25%, 50% STAX).
As a friendly reminder, STAX plans to introduce a governance portal via Snapshot.page in the near future — we are simply just waiting for all the staking pools and rewards to be better solidified before we can give weight to different pool participation’s votes, and so if you believe that this rewards split is not optimal, you will be able to use your STAX token to vote on upcoming governance proposals to adjust this initial split. So if you want to modify our initial BLISS program, start stacking your STAX as we prepare for governance!
We are certain that STAX holders will be rewarded as we build out this ecosystem for StableXSwap, and look forward to seeing BLISS in the community :)
Telegram Group: https://t.me/stablexswapofficial
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