Arriving at the summit. DeFire to deploy ADA-powered Router for Milkomeda with cross-chain settlement options
“If all difficulties were known at the outset of a long journey, most of us would never start out at all.” — Dan Rather
We are immensely proud to announce that DeFire — is to roll out its technology on the Milkomeda C1. In addition to this DeFire will launch with unique new tokenomics that will turn the idea of liquidity mining on its head! We call it ‘inverse liquidity mining’ or ‘order flow farming’.
DeFire, and taking the less-traveled road
It has been a long way for all of us — we finished our fundraising 10 months ago and have been working diligently all this time to deliver the technology we have been creating for the last year. The advent of Milkomeda, its interoperability, low fees, and the potent liquidity flows that awash its flourishing DeFi landscape have finally brought this lengthy undertaking to a climax, or in our case; a brand new horizon. The router is being finalized and we have only some final tests left to perform… but what is so special about DeFire?
There are two key components to our protocol: our tokenomics, and the cross-chain nature of trade settlement. Let us recap what we had in mind when designing DeFire’s tokenomics, our goals and thought-process:
- We wanted to make trades routed through DeFire execute at much more favorable effective prices than through any given DEX, even taking into account the ultra-low transaction fees of the Milkomeda network;
- We needed to give DEXs and other execution venues — as well as traders — significant incentives to hold, and stake CWAP tokens;
- Finally, we had to ensure that the supply/demand/stake balance is kept in equilibrium, preserving sustainable growth in the CWAP token’s price over time.
Now that we are finally rolling out the DeFire flagship product on the Milkomeda router, with cross-chain settlement — we are happy to explain how our tokenomics will work:
What is ‘order flow farming’?
- There is a constant inflation rate of CWAP tokens that accrue on a volume-weighted basis across all the traders that have made at least one transaction. You may think of this as a form of liquidity mining where instead of incentivizing liquidity provision, we stimulate trading — the analogue in traditional finance would be ‘taker rebates’ (although offered by the broker, not the execution venue).
- This makes it simply more rewarding to trade with DeFire, as not only does our router optimize the order execution across all DEXs, but it also gives an effective APY for simply trading through using our system.
- “Well that sounds cool” — We know! But there are also rebate pools; these are even cooler…
The idea behind ‘Rebate pools’ is the following:
- People mistakenly believe that TVL (Total Value Locked), is the one and only important metric when assessing a DEX. Whilst TVL is an important indicator, DeFi users tend to forget that as much fun as it is to yield farm, and thereby earn some low market cap tokens with 5-figure APYs (that are rarely worth what they were when they were earned), it is just as important to earn maker rebates (aka, LP fees).
- How are maker rebates generated? Well, takers pay them — therefore, the order flow of a DEX (or in layman terms just how much are people trading in or through its liquidity pools), is the second metric of existential importance.
- How does DeFire factor into all this? We believe it’s important to give strong incentives to buy and stake our native token CWAP. Do you feel like DEXs are good candidates for this system? We sure think so! So what we do is give DEXs a way to subsidize traders’ taker fees by buying out from the market and giving back CWAP tokens to traders the amount of taker fees paid. If a DEX decides not to buy our CWAP token, the DEX’s LPs don’t earn maker fees — creating an infinite wave of buying pressure for CWAP.
Stay tuned, guys. And remember:
The DeFi evolution is on it’s way: TVL ascends, layer-1’s evolve,[[ Cardano is making it’s last updates for Plutus core to go mainnet.]] REDACTED
[[Milkomeda is making it’s last steps for cross-chain liquidity to awash it’s blooming shores]]
DEFIRE joins the race‼️
We need your love.🥰
You’ll need our tech🦾…
It was all a part of the plan.
Follow the Monk.
