LavaSwap is launching a new economic model. LavaSwap V2 will be upgrading its DEX platform. LavaSwap plans to introduce strategic investors to change the current problem of “mine, withdraw and sell” in liquidity mining, and to maximize the benefits of LAVA long-term token holders and ecological participants.
LAVA is one of the first interoperable decentralized cross-chain swap protocols powered by Huobi Eco Chain. Since its launch, it has been actively exploring the best development model for the DEX market. After months of research and discussion, LavaSwap has a deeper understanding of the DEX development and community user needs. V2 will make new adjustments and upgrades on the basis of the existing economic model, and is committed to leading the DEX market in the new era!
The current development bottleneck of DEX market
The boom of DeFi in 2020 opened the door to the decentralized market in the blockchain industry. The NFT industry has gradually entered the public’s view and has become one of the most watched advancements in 2021. Driven by DeFi and NFT, the DEX market gradually has the strength to compete with CEX.
The emergence of the DeFi market virtualizes the traditional physical world of finance and attracts many investors with the advantages of fairness and impartiality. Various scenarios such as currency issuance, currency trading, lending, asset trading, investment and financing have sprung up, creating a more prosperous ecology of blockchain.
The boom of decentralized offerings has led to the rapid development of the DEX market, users can only interact on different dApps. With the increase in demand for interoperability of assets from different chains, the flow of assets across chains has become more complex. Most DEX markets have not been truly decentralized, and community governance has also become just a slogan. We must consider how to realize the rapid barrier-free transaction in the DEX market and complete decentralized governance has become the development goal of the DEX market. The trading platform is particularly important for the improvement of the cross-chain bridge and the DAO governance mode. The full ecological development of NFT+ DEFI + DAO + cross-chain bridge may become the core of DEX trading platforms.
LavaSwap upgrade, leading the new direction of DEX market
LavaSwap has been online for several months and has received support from the community. We have decided to grow with the community. LavaSwap has launched the DAO governance model, iLAVA, and the community governance platform. The launch of LAVAswap V2 is also a joint decision with community users. In the future, LAVAswap V2 will open a full ecological development model.
Community users’ continuous support for LAVA has led to the rapid development of LAVA in the DEX ecosystem. LAVAswap is improving the ecosystem in all aspects and multiple dimensions. After that, a closed loop of blockchain ecological products with NFT+ DEFI + DAO + cross-chain bridge will be formed to provide cross-chain, stake and transaction. The whole ecosystem services of blockchain, such as decentralized finance and asset on-chain, will become the multi-chain innovation DEX model supported by multi-ecological chains.
The core of LAVAswap V2 will include the following directions:
1. LAVA tokens will never be issued, and the destruction model will be introduced one after another.
The total amount of LAVA tokens remains unchanged, and the additional issuance after 3 years will be cancelled. The total circulation of LAVA is 100 million, only decreasing but not increasing.
2. Asset redistribution on the token chain.
LAVA initial tokens are all issued on HECO and will be reallocated to BSC and ETH.
Summary:
LAVA is one of the first interoperable decentralized cross-chain swap protocols powered by Huobi Eco Chain, so currently 100% of the LAVA tokens are on the HECO ecosystem, and the LAVA cross-chain bridge will soon go live and will add both the ETH and BSC ecosystems. LavaSwap will mint 20% of the total LAVA tokens issued in the ETH and BSC ecosystem respectively, while 40% of the LAVA tokens will be destroyed in the HECO ecosystem to keep the total number of tokens unchanged.
The current token distribution on the three chains: HECO 60%; ETH 20%; BSC 20%.
The BETA version of the LAVA cross-chain bridge will be launched soon, and LAVA will be one of the core assets that will be launched. Users can convert the three assets of LAVA through the LAVA asset cross-chain bridge. At the beginning of the cross-chain bridge, LavaSwap will mainly support multi-currency asset cross-chain and value project mining. Later, some landing application scenarios will be added one after another to open the development path of new DEX.
The token security audit report has been completed, and the link is as follows:
https://lavaswap.com/static/file/Smart%20contract%20security%20audit%20report_Lava_bsc_ethereum.pdf
After in-depth understanding, LavaSwap realized that the liquidity mining model of “mine, withdraw and sell” is not completely consistent with LAVA long-term token holders and ecological builders. Therefore, LavaSwap has several major changes:
(1) Starting from May 20, liquidity mining rewards will no longer be provided.
(2) Introducing strategic investors to provide liquidity for core trading pairs;
(3) The reward of the DAO pool remains unchanged, but the logic of halving will be introduced.
It will be much harder to acquire LAVA tokens!
Token economic structure will be redistributed
LAVAswap V2 will create a new token model, distributing LAVA tokens to the various ecosystems of the platform, bringing enough value support to LAVA, enabling more use value of tokens, and continuing to empower token application scenarios. While transferring benefits to token holders, it also continuously stimulates the increase in the value of LAVA tokens.
Changes in transaction fee distribution:
The current transaction fee of LAVAswap is 0.3%. In the future, this total fee rate will not change in LAVAswap V2, and the specific distribution will change. The detailed distribution ratio of transaction fees in LAVAswap V2 is as follows:
0.3% = 0.25% (1) + 0.025% (2) + 0.025% (3)
In detail,
(1) 0.25% LP dividend
(2) 0.025% repurchase LAVA and distribute dividends to the DAO pool
(3) 0.025% Technology R&D + Finance
More ecosystem products will be launched
In the future, LavaSwap V2 will launch more innovative ecosystems to increase the economic model of LAVA tokens with repurchase dividends and repurchase destruction, the following ecological products will be launched in LAVAswap V2:
(1) IHO: Plan to use LAVA/HT LP for financing, HT will be given to the project party, and LAVA will be destroyed.
(2) Cross-chain bridge: Technical support fee 5000LAVA will be charged (the fee will be adjusted); 50% of the fee will be distributed to the DAO pool, and the other 50% will be destroyed.
(3) Whitelist: Charge 500 LAVA for technical support; 50% of the fee will be distributed to the DAO pool, and the other 50% will be destroyed.
