Just recently, Beamswap submitted a Moonbeam Grant Proposal on the Moonbeam Foundation Forum.
To gain stronger support from our communities and help everyone understand the intent of the proposal, here are some of the key points.
Why Moonbeam Grant Proposal?
In the upcoming weeks, Beamswap is about to launch two new products — Beamswap v3 or concentrated liquidity AMM, and a decentralized perpetual exchange Beamex.
Higher liquidity needs
Compared to the current state of the Beamswap platform, both will enhance transactional efficiency while reducing operating costs. However, they require stronger liquidity, as demonstrated by other concentrated liquidity and perpetual exchange platforms.
Beamswap submitted a Moonbeam Grant Proposal to gain support in product releases through boosted market liquidity, which would help gain and retain more active users on the Moonbeam Network.
User base growth
A larger and loyal community would increase Beamswap’s and Beamex’s self-sufficiency as user-powered DEXs. It would also reduce their reliance on external funding, making them long-term sustainable and contributing to the Moonbeam and Polkadot ecosystems.
For that purpose, Beamswap would roll out advanced features and platform upgrades. These would reward users, either crypto traders or platform promoters, and enhance the platforms’ services.
By supporting more XC-20 assets, Beamswap would keep reinforcing the implementation of Moonbeam’s connected contract capabilities. All in all, users would benefit from greater DeFi opportunities and increased market depth while optimizing their portfolio with improved rates and lower slippage.
Beamswap v3 (CLMM)
One of the planned platform upgrades is Beamswap concentrated liquidity AMM (CLMM) or Beamswap v3.
Beamswap CLMM takes automated market maker (AMM), Beamswap’s current backbone, to the next level. It increases the capital efficiency of the DEX and serves as an ideal yield source for liquidity providers (LPs).
The high transactional efficiency of allocation liquidity is the main advantage for traders, LPs, and supported projects. Traders benefit from less slippage, LPs are able to deposit fewer tokens while earning higher fees on them, and supported projects can deliver deep liquidity for their tokens without the need for more capital deployment.
Beamex Beta
The second planned rollout by Beamswap is Beamex, the newest perpetual DEX delivering opportunities for trading derivative crypto contracts on the Moonbeam Network.
On Beamex, users will be able to create both market order swaps and open futures positions with up to x50 leverage at low fees and zero price impact.
Chainlink-sourced price feeds will minimize liquidation risks from temporary wicks and deliver optimal prices without additional costs.
In the Beta phase, Beamex is run on the BSC Testnet, and users can already test the exchange core features, such as market orders and opening positions using imaginary vault tokens.
Find out more about Beamex and its core features. 👇
Learn how to get faucet tokens and Beta-test Beamex. 👇
Beamex Beta was off to a good start, attracting over 550 total users who opened more than 1,200 positions and generated over $26M in trading volume in just the first week.
BLP token
Beamex liquidity is supplied by BLP, Beamex Liquidity Provider Index Token, the platform’s native liquidity provider asset.
BLP represents an index of assets supporting swaps and leverage trading on Beamex:
- ETH (30%)
- BTC (12%)
- DOT (5%)
- GLMR (3%)
- USDC (50%)
It can be minted using any index asset or burned to redeem any index asset.
Learn more about BLP, Beamex liquidity provider token. 👇
Grant incentives use
As stated in the Beamswap Moonbeam Grant Proposal, the Beamswap platform seeks to channel all potentially acquired GLMR incentives to network users through greater rewards for Beamswap v3 liquidity providers and Beamex perpetual traders.
Phase 1: Beamswap v3 liquidity building
- Duration: first week of April to April 30, 2023
- GLMR use: Beamswap v3 liquidity incentives
In the first four weeks of April, a liquidity-sufficient order book would be developed for assets included in the Beamex Perpetual Index token, BLP. With the Beamswap v3 launch and proposed TVL, ~95% of all Moonbeam-based transactions to date could be covered.
Through XCM transfer and connected contracts, Beamswap would further deploy a stable pool (3pool) consisting of USDTxc, USDCaxl, and USDCmulti.
The success of Phase 1 and Beamswap’s capacity to proceed with Phase 2 would be measured by unique user growth, transaction size growth, TVL, interactions with the exchange’s smart contracts, and more.
Phase 2: Beamex launch
- Duration: first week of May to June 30, 2023
- GLMR use: Beamex exchange incentives
Following the liquidity expansion in Phase 1, the launch of Beamex, the first perpetual DEX on Polkadot Network, is planned.
Traders would be able to open long or short positions on Beamex and benefit from liquidity of the Beamswap Flywheel.
Expected APY and TVL should be met within the second week of the Beamex launch.
Built with users in mind
With the proposed allocation in the grant application, funds would be channeled more directly and thoroughly to the user community to deliver an enjoyable DeFi experience and exceed user expectations.
Better platform features and greater opportunities deliver more reasons for the community to grow, expand, and keep referring Beamswap v3 and Beamex as the go-to DeFi and crypto trading platforms.
As Beamswap pursues the goal of becoming a fee-powered DEX, stronger incentives would spur a greater influx of users, further increasing the volume and liquidity on the platform and the Moonbeam Network.
Adoption is key
Long working hours have led to the near launch of both Beamswap v3 and Beamex, and now they only need to pass external audits.
Beamswap’s loyal partners will support the platforms with various improvements, advanced DeFi and trading features, and smoother management.
And with Moonbeam Grant funds, Beamswap would give users more reasons to adopt Beamswap v3 and Beamex as trading platforms of choice and Moonbeam as a liquidity-strong network.
Read the complete Grant Proposal and support Beamswap in delivering the best of DeFi and crypto trading. 👇
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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