Introducing Axial: Native Value-Pegged Asset Swapping
Axial is creating the new center for liquidity on Avalanche.
Introducing Axial: a new value-pegged asset exchange with a focus on native Avalanche applications. Axial will bring new solutions to bridged, derivative and synthetic assets, all through the use of secure contracts that do not put user funds at risk with oracles.
Axial is being launched from what was previously Snowball’s StableVault. Under this new brand, the Axial product will be able to stand independently and will be given the attention it deserves.
Axial launches November 10th, 2021.
What’s Different about Axial?
Axial has been created by prominent figures in the Avalanche ecosystem for the Avalanche ecosystem. It is providing a unique implementation of value-pegged asset swapping, including much needed support for bridged, derivative and synthetic assets.
Bridged Asset Support
Because of Avalanche’s low transaction fees and quick finality, it is uniquely suited to become a hub for cryptocurrency transactions. More specifically, Avalanche is uniquely suited to become a hub for bridged assets. In the future this means that there will be many bridges to Avalanche and consequently many different assets with duplicate versions (ex: USDT.e, native USDT, etc.).
To avoid problems, these assets will require some way to swap between each other. This is exactly what Axial provides. However, Axial’s solution is better than a traditional decentralized exchange. The reason is because Axial only charges a 0.04% fee on each swap. Additionally, Axial’s smart contracts operate on a different curve than most DEX liquidity pools. Axial’s pools are specifically tailored to provide lower slippage. Meaning, you save more money on each swap.
Derivative & Synthetic Assets
Axial plans to offer support for derivative & synthetic assets, something that currently has limited support on Avalanche. Specifically, Axial will provide support for lending pool receipt tokens.
Whenever you lend assets on Benqi, Banker Joe, or Aave, you get a receipt token in return. Axial will create pools that combine these synthetic assets together so that you can swap between all three lending protocols seamlessly.
Let’s say you have DAI.e deposited on Banker Joe, but you want to move your DAI.e to Benqi. With Axial, you could trade your deposit on Banker Joe for a deposit on Benqi without having to withdraw and deposit your DAI.e. Additionally, this liquidity pool will open up opportunities for automated swapping between lending protocols so that you can always be earning the highest yield.
No Oracle Reliance
Axial uses contracts that have hard coded functions and do not rely on oracles. This is important because oracles open up attack vectors for exploits in a protocol. Axial does not need to use oracles and is thus a safer place to put your funds. Rather, Axial is reliant on arbitrage opportunities that keep its liquidity pools balanced.
Launch
At launch, Axial will offer two unique liquidity pools.
- AS4D — TUSD, USDC.e, USDT.e, and DAI.e
- AC4D — MIM, FRAX, TSD, and DAI.e
The launch date for Axial is November 10th after the Axial proposal for Snowball finishes. Stay up to date on our Discord, Telegram and Twitter.
Tokenomics
Axial uses the AXIAL incentive and governance token. There will be a total of 365 million tokens distributed over a period of 3 years. AXIAL will be distributed per second rather than per block to optimize for sub-second finality on Avalanche.
AXIAL Distribution
- Liquidity Providers — 50%
- Axial Treasury — 15%
- Snowball Treasury — 15%
- xSNOB holders — 20%
Snowball’s Part in Axial
The beginning of Axial started in March when Snowball created the first StableVault on Avalanche. Since then, Snowball’s StableVaults have not received the attention they’ve deserved due to the overshadowing from Snowball’s other products.
Starting now, Snowball is operating as a Venture DAO, with its first product being Axial. Snowball’s developers have created Axial with the intention that it can eventually stand on its own without the aid of Snowball. Until then, Snowball will incubate Axial so that it can grow into a leading protocol on Avalanche.
About Axial
Axial is a decentralized value-pegged asset exchange with a focus on native Avalanche applications. Axial uses a model that provides ultra low fees and slippage for traders.
