Introducing TigerSwap and Dual Token model on Tron: An evolution of DEX on Tron Network

⬆️Background

In the two years since its launch, 🦄 Uniswap has solidified its position as one of the mainstays in DeFi. Along with that, their protocol design has become a standard in and of itself, one in which many projects have come to derive its mechanics from. 🍣SushiSwap adds SUSHI tokens on this basis, which also provides a reference for the current DEX

With that, we have designed 🐯TigerSwap as the next step forward in the Uniswap protocol design: an EVOLUTION. Taking Uniswap and SushiSwap’s elegant core design, we’ve added community-oriented features, extended the farming cycle, carried out burning mechanism of TIG tokens and migrated everything to Tron network. We believe help improve the design of the protocol, as well as provide further benefits to the actors involved.

🎨Protocol Design Features

1. Innovative dual-token governance structure: separation of powers and dual benefits.

To help with liquidity migration to TigerSwap, the platform will be running an initiative that sees stakers of various JustSwap LP tokens rewarded with Tig and TigC token.

TigC is the governance token of TigerSwap. It will be airdropped to members who participated in the construction, promotion, and governance of the TigerSwap community in the early stage. All members who join the TigerSwap community can receive it. The number of TigC tokens is 100,000, which will never be increased and will only be used for project community governance.

Tig is the equity token of TigerSwap and enjoys the certain rights of the TigerSwap. The dual-token governance structure separates the interests of shareholders and governors. For investors, holding Tig and TigC tokens can get double benefits.

2. The 100-week long-term farming cycle produces higher value, halving every 10 weeks, deflationary issuance.

With TigerSwap, one can provide liquidity into a pool and earn rewards in the form of Tig tokens. As an early adopter to help provider liquidity, you become a significant stakeholder of the protocol.

The total number of Tig token is 220 million, of which 100 million tokens are farmed through stake those LP tokens into the corresponding initial list of pools, and 100 million tokens will be farmed after the decentralized exchange goes online.

At the same time, according to SushiSwap’s recommendations, 10% of each Tig issued is allocated to community developers to ensure the continuous development of the project. The number of Tigs farmed by each liquidity provider is calculated by the proportion of the LP provided by it in the total LP in the same pool.

The initial set of available pools:

• Pool 1: USDT/TRX LP — 1Million Tig
• Pool 2: Pearl/TRX LP — 1Million Tig
• Pool 3: JFI/TRX LP — 1 Million Tig
• Pool 4: SUN — 1Million Tig (SUN token is first supported by DEX!!!)
• Pool 5: Tig/TRX LP — 90 Million Tig (MORE Rewards!!!)
• Pool 6: TigC/TRX LP — 1 Million Tig

The output in each of the above pools is halved every 10 weeks and ends in 100 weeks.

3. 100% of the transaction fee is used to repurchase Tig and burn it.

With TigerSwap, liquidity providers receive a proportionate share of the trading fees generated by each pool they provide liquidity to. However, unlike other AMM protocols, liquidity providers will continue to receive a share of the trading fees even after they have withdrawn their liquidity.

A 0.3% fee will be charged for each trading pair, and these fees will be converted into Tig tokens and then distributed to the liquidity providers of each pool. The total amount of tokens in this part is 100 million. All fees generated by users during the trading process will be used to repurchase Tig (via TigerSwap) for token burning. The token repurchase and burning mechanism of centralized exchanges has been proven to be the most effective mechanism for enhancing the value of tokens in the digital currency industry, such as BNB and HT.

TigerSwap has followed this mechanism and made some innovations in this mechanism. One is decentralized destruction, which makes the destruction more transparent and open. In addition, it has added an invitation and reward mechanism to attract more high-quality assets and liquidity providers.

🚀Why Tron

Comparing to ETH, Tron has a much cheaper transaction fee and a faster speed. Right now it takes around $80, roughly 0.2 eth to do one transaction on UniSwap, it basically prevent more people of using the protocol. Tron’s cheaper transaction fee will make Defi more popular.