DriftxChange has made the decision to allow our community access to the $DRIFT Token through the Stellar Decentralised Exchange and Automated Market Maker route rather than through Centralised Exchanges.
This allows our community complete anonymity by using web3 wallets such as Rabet and Decentralised Clients such as Lumenswap.
Privacy, Financial Sovereignty and Inclusion are extremely important to us.
Liquidity is the life blood of a crypto project. Without it traders and investors are unable to swap assets without huge price impacts. Low liquidity can have a devastating and far reaching effect on not just the individual project but how the whole network is viewed.
One of DriftxChange’s primary missions is to tackle low liquidity in a fun and gamified way. Our community will be incentivised to provide liquidity through games and token rewards.
A relatively new concept is AMMs. Automated Market Makers allow community members to provide their crypto assets as liquidity into various liquidity pools.
Liquidity pools on Stellar have 2 native assets. There is no limitation to the 2 assets you can pair together.
When you enter one of these liquidity pools you must supply both assets in equal $ value.
Each time a trader swaps between the 2 assets in the Liquidity pool a 0.3% network fee is added. This fee is awarded to those people who are providing liquidity in that pool. It is divided instantly and you receive a share based on your ownership of the wider pool.
For example if a trader swapped $1000 worth of $XLM for $DRIFT they would be charged a $3 fee.
If you had 10% ownership of the pool you would earn $0.30 from that transaction.
Without extremely high trading volumes the earnings from these network fees is very low.
This is why certain projects have decided to also provide their native token as an incentive to community members providing liquidity in their pairs. This include but are not limited to DriftxChange, Rabet, Lumenswap, Aquarius and Brave.
These additional rewards can make liquidity pools far more profitable for providers. Here at DriftxChange we feel there are still things we can do to make it even more beneficial to provide liquidity!
The first of these is for us to partner with certain Stellar projects willing to provide some of their tokens to liquidity providers. By creating new pools with these projects we can offer double rewards ( both project tokens ) to our joint communities, this is on top of the basic network fees.
We have also taken this reward schedule a step further by integrating NFT games and rewards to further incentivise the liquidity pools we offer.