Introducing A DEX For the People
Comrades, the Revolution is on.
The burners’ and builders’ revolution means burning LUNC, comrades; it does not mean idleness and leisure. That is a bourgeois ideal. The fat cats and capitalists are not burning. They are only talking.
Comrades, some day, soon, you — we all — must go to work and do things, act, produce results .
When the hour strikes, when you are ready to go back yourselves to burn and you want builders that will go to burn — not only thinking Lunaticism and talking Lunaticism — when you want a exchange that will DO Lunaticism, then — come to the burning DEX”
What is Burning DEX?
Burning DEX is a community-driven protocol built to benefit all true Lunatics, via the burning of Luna Classic tokens — LUNC.
By incorporating the burning of LUNC tokens into the exchange, the team believes that the memetic power of LUNC burning will propel the protocol to heights impossible to reach by centralised, capitalist protocols.
The team has a history of delivering projects on both Terra and Ethereum. They were drawn to Terra 2 by the ongoing work and mission of the LUNC DAO team, whom they deeply admire.
The protocol will utilize a decentralized fair launch for the benefit of the true believers in the ecosystem. The goal is to create markets on Terra in a truly decentralized and community led way; leveraging the power of network effects from the community in order to create free & permissionless markets, and of course burn LUNC in the process.
Burning DEX Mission
- Burn LUNC.
- Provide the highest possible APYs to liquidity providers.
- Give Lunatics complete ownership of the platform — no “builder vote” to overrule the will of the many.
- Fair and egalitarian protocol launch, including a 50 megaton airdrop, giving the users total control and power to direct the exchange in future. A DEX for the people.
Users
Burning DEX users can act as traders and liquidity providers.
Traders can instantly swap between two Terra 2.0 assets at a constant price determined by the corresponding Burning DEX liquidity pool.
Liquidity providers can deposit a pair of any two tokens in equal proportions to mint LP tokens representing their position. These LP tokens allow the user to receive a portion of trading fees from swaps on the DEX. Liquidity Providers on Burning DEX will receive 69% of the swap fees on their provided pairs.
Burning DEX
Liquidity Pools
Burning DEX uses the classic AMM model to provide constant prices for native Terra 2.0 assets like the LUNA and BURN tokens. The AMM utilizes pools which hold token pairs provided by LPs in a 50/50 ratio. LPs are incentivized to provide liquidity by trading fees, of which they earn 69% of, or 2.07% of trading volume on their respective pools. For a more detailed explanation on LP tokens, check out the Uniswap docs.
Constant Product
The Burning DEX protocol maintains prices based on the constant product invariant formula, popularized by Uniswap.
The product of the number of tokens on each side of the pool should remain constant across trading operations (buying / selling).
Pricing
In order to preserve the constant product invariant, Burning DEX will make prices that ensure the product of resultant balances of the pool is as close as possible to the product calculated prior to the trade. With X being the current balance of the pool’s source asset and Y being that of the target asset:
To determine the proper value of Bout given the trader’s offered asset Ain:
Burning DEX executes trades with the current balances of the pool and the number of incoming tokens. The market price is discovered by the number of the pool’s target tokens divided by the source asset (also called the pool ratio). The spread between the executed and the expected trade is:
This spread will naturally decrease as more LPs provide tokens and the total pool volume increases, making the executed price closer the the expected price.
Trading Fees
All trades made on Burning DEX will take a 0.3% fee, paid in the outgoing token (received by trader) on any swap. 69% of this fee will go to liquidity providers for the pair, while the remaining 31% will be transferred to a treasury devoted to buying and burning LUNC. In other words, a 0.207% fee is taken on each trade and distributed proportionally to all LPs for the pair, and a 0.093% fee is taken by the protocol to purchase and burn LUNC.
Additionally, if the traded asset is a native token such as LUNA, the Terra network will incur a tax on the transfer.
For liquidity providers, any fees generated can be withdrawn by burning the corresponding LP tokens.
LUNC Burn
Treasury
The treasury will be held in a 3 of 5 multi-sig wallet, with members of aligned DAOs and community appointed “Comrades” holding voting rights.
The burn process will include sending LUNC to the official burn wallet address, as indicated by Do Kwon. The address can be found here: terra1sk06e3dyexuq4shw77y3dsv480xv42mq73anxu
All LUNC burning will be communicated via twitter, with the process governed and managed by the community of BURN token holders & multi-sig wallet voters moving forwards.
The revolution is only just beginning.
Join the Revolutionary telegram here: https://t.me/LUNCburn_DEX
Follow the Twitter page: https://twitter.com/burning_DEX
Lastly, prepare for the Tsar Bomba Airdrop campaign to commence.
Nothing in this article should be interpreted as investment, financial, legal or any other kind of advice.
