Beamswap opens discussions on Polkassembly for PerpaDOT initiative
Before submitting the official proposal to Polkassembly voting, comments and feedback are welcome through community discussion.
The Beamswap team means business when it comes to continuously strengthening the relevance of DeFi in the Polkadot space and bringing it closer to the community.
The latest initiative, Beamex PERPadot, would help propel the expansion of Beamex, the only decentralized platform for perpetual trading on Polkadot, and onboard new users to the network.
The official Polkassembly Treasury proposal for Beamex PERPadot has yet to hit the decentralized ballots. In the meantime, the Beamswap team is gathering feedback, comments, and suggestions on the Polkadot Discussion board to tweak and improve the proposed points if needed.
Two proposal topics are being discussed:
Let’s dive into the details. 👇
1. Beamex PERPadot: $DOT LP Depth Loan
TL;DR
- Requested Amount: 500,000 $DOT
- Period: One year
- Objective: To create a significant $DOT liquidity depth in the Beamex Liquidity Pool (BLP) that would allow traders to open larger leverage positions natively on Polkadot.
The why behind it
Adequate liquidity depth is essential to facilitate smooth order execution on decentralized trading platforms. This holds especially true during high market volatility when traders must counteract rapid and unpredictable price movements.
With deep enough liquidity, traders can enter and exit positions without slippage while relying on fair pricing and mitigating the risk of cascading liquidations.
PERPadot Liquidity Boost
The main aim of the initiative is to ensure a seamless native decentralized perpetual trading experience for all Beamex users, regardless of market sentiment.
The funding would also attract new users to the Beamex platform and, consequently, to the Polkadot ecosystem, helping it compete more fiercely against other networks or projects, such as GMX on Arbitrum or Jupiter on Solana. A greater influx of new users would bring the platform closer to becoming a fully user-powered perpetual exchange.
With deep enough liquidity pools, liquidity providers would more consistently earn rewards for market-making in swap fees and leverage trading fees. At the same time, traders could enjoy a seamless and more portfolio-friendly DeFi experience on the Polkadot network, including opening and closing larger positions and swaps with zero price impact.
Distribution
The 500,000 $DOT requested would land into the Beamex Liquidity Pool (BLP) — a unified LP asset that combines volatile and stable assets supporting all trades on Beamex.
The distribution would occur weekly in five equal tranches. This way, the LP index would remain undisrupted while delivering a consistent supply of $DOT to Beamex traders across five weeks. Besides, such continuous distribution would prevent the lock-up of large parts of the pool by trade positions initiated by Beamex users.
- Initial Supply: 37,500 $DOT (7,5% of the grant)
- Week 1: 50,000 $DOT (10% of the grant)
- Week 2: 87,500 $DOT (17,5% of the grant)
- Week 3: 125,000 $DOT (25% of the grant)
- Week 4: 200,000 $DOT (40% of the grant)
After one year since funding, Beamex would withdraw the surplus liquidity from the platform and transfer it back to the Polkadot Treasury account. Thanks to on-chain verifiability, users would easily trace assets and their position value in the index.
Find the detailed deployment plan 👉 here.
2. Beamex PERPadot: Liquidity Incentive Program
TL;DR
- Requested Amount: 500,000 $DOT (475,000 $DOT for increased market liquidity on Beamex, and 25,000 $DOT for trading competitions, marketing and offline events.)
- Period: One year
- Objective: Onboarding new traders to Polkadot by providing significant liquidity depth for perpetual trading.
The why behind it
The DeFi world has consistently been attracting new users who want to leverage a self-sovereign approach to managing their finances. However, platforms or networks’ liquidity capabilities have had a hard time keeping up.
To solidify DeFi’s position as a legitimate competitor to traditional portfolio management, liquidity should increase accordingly. Currently, insufficient liquidity on Polkadot leads to higher slippage and less efficient trading, leaving traders with a sour aftertaste.
PERPadot Liquidity Incentive
A liquidity boost directly translates to greater access to the capital that sustains trades on DeFi platforms and DEXs. With sufficient liquidity pools, traders could enjoy smooth transactions, execute large orders at low slippage and gain exposure to $DOT on the chosen chain.
The Beamex platform also plans to onboard more liquidity providers to the Polkadot ecosystem by offering liquidity mining incentives. Additional rewards for trading activities would attract more users to Beamex and gain the platform’s traction in the open market.
The platform would thus accelerate its path towards becoming a fully user-powered perpetual exchange through increased platform use, more fees generated, and increased APY and rewards. This, in turn, would lead to greater interest in the platform, higher transaction numbers, larger 24-hour trading volume, and ultimately greater BLP supply.
Distribution
Of the total 500,000 $DOT requested, 475,000 $DOT (95%) would be allocated as rewards for BLP liquidity providers over one year.
5% or 25,000 $DOT would be reserved for trading competitions, marketing, and offline events.
Double the benefit
The discussed proposals have been created with a significant purpose, considering that a solid liquidity boost would bring two-fold benefits to the Polkadot space.
First, it would help solidify the network’s position in the DeFi arena. And second, with new users attracted and more $DOT-based transactions on the native chain, more creative power would flow into the Polkadot ecosystem to develop products that respond to growing user demand, further increasing the network’s relevance in Web3.
Join the discussion on the links below. 👇
Share, like, and help us tap into greater possibilities for the whole Polkadot space. We appreciate everyone’s support! 🚀
About Beamswap
Beamswap is a DeFi Hub built on the Moonbeam Network featuring a decentralized exchange (DEX) and an automated market maker (AMM). It gives users the freedom of adding liquidity, performing peer-to-peer transactions, swapping fungible tokens, and earning passive income from staking and yield farming. Beamswap will support the growth of Moonbeam’s ecosystem and act as a launchpad for new projects developing on the network. Our team’s mission is to aid in the multichain vision to serve as a host for projects on the Moonbeam & Polkadot Ecosystem while working alongside projects with existing infrastructure looking to bridge into the multichain universe.
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