As of Q3 2020, Plutus has been working on increasing accessibility of Pluton (PLU). We launched the Pluton Liquidity Injection Programme (PLIP), a plan that involves several partnerships and micro-sales to help in achieving this.
PLU-Fiat Limit History
- October 12th — PLU-Fiat swap limit increased from £/€100 to £/€200.
- October 22nd — PLU-Fiat swap limit increased from £/€200 to £/€500.
- November 4th — PLU-Fiat swap limit increased from £/€500 to £/€550.
- November 18th
- December 2nd
- December 16th
- January 3rd
As mentioned in a previous announcement, we are continually evaluating and adjusting the PLU-Fiat swap limits to find a strong middle-ground between user-experience and functionality.
Why was PLIP Introduced?
A year after the initial crowdsale in 2016, Plutus successfully released the first version of the app and served thousands of its founding members. Instead of taking the shortcut and developing a centralised system, Plutus took the time to develop a decentralised system in a unique way to create a bridge between the non-custodial aspect of crypto and traditional finance.
The latest version, Plutus 2.0, was released in 2019 followed by our plans to increase token accessibility/awareness a year later in 2020. One of our main goals is to enable members to effortlessly swap PLU into a spendable Plutus Card balance.
Has the Liquidity Improved?
We are halfway through the PLIP and 844,000 USD in value has been raised via a 6-day public sale on the PlutusDEX. The majority of the funds raised have been allocated towards increasing awareness and accessibility to our platform and our reward token via various marketing channels and third party collaborations, as well as on the PlutusDEX where we have seen nearly $250k in PLU transaction volume between users since the start of October. PLU transaction volume rose by 203% in October compared to the month prior when our PLIP programme was yet to go live.
Why was the PlutusDEX Created?
The PlutusDEX is neither a trading platform, nor is it a place to arbitrage or speculate on crypto assets. The PlutusDEX was built to provide a non-custodial way of swapping crypto into a fiat balance for everyday purchases and funding of your Plutus Account. Since the inception of Plutus 2.0 on 3rd November 2019, the PlutusDEX has converted over $2 million dollars worth of crypto to enable regular Plutus Card payments whilst remaining completely non-custodial and peer to peer.
However, in the last month, since our incremental limit increase for PLU, we have noticed patterns of abuse to this feature where our DEX’s fair rate policy is being used for arbitrage trading as opposed to swaps for everyday spending. This is against our service policy, or the characteristics of the reward token.
What is the Impact of this Abuse?
The PlutusDEX, and our proprietary peer-to-peer order matching system, matches all conversion orders directly to other members on the Plutus ecosystem. When the sell volume exceeds the buying demand, then our internal liquidity solution steps in to ensure the crypto conversion order is filled. This is in place to guarantee a positive user experience.
If the convenience provided by Plutus is continuously abused by Plutus members who are looking for arbitrage trading opportunities on the platform, then it impacts the available volume which can cause a negative experience for a member looking to swap PLU for their everyday purchases, as well as major legal implications to our service which are tied to how Pluton are treated on the PlutusDEX.
Note: The PlutusDEX is not a trading platform, it’s a gateway to provide fuel for the payment network and everyday card purchases. Any members found in violation of this service policy may have their account suspended.
What are we Doing to Mitigate this Abuse?
Plutus is half-way through the PLIP and we still have two Tier 1 listings still to arrive, alongside improvements to token awareness and accessibility which the team is continually working on. A daily swap limit of £/€30 will be implemented as of today (19/11/2020), to prevent malicious users on the network — this is a figure that is line with average swap amounts on the PlutusDEX and everyday spending of our regular members.
Fiat and ETH deposits are still available for funding your Plutus Card, and you can still earn 3% rewards on your everyday purchases.
Note: This is temporary and will be incrementally increased on the next limit review date of Dec 2nd.
Is the Monthly Limit Being Increased?
Yes, as part of the PLIP road map, there was a PLU-Fiat increase scheduled for November 18th. The monthly swap limit on the PlutusDEX is now £/€600. The next update to the monthly limits will be on December 2nd.
Will the Daily Limits Also be Increased in the Next Update?
We will evaluate the demand for daily PLU swaps on the PlutusDEX after our upcoming Tier 1 update which is now due to be announced mid-next week. It was scheduled to be announced this week but it has now been moved to the following week due to strategic and legal reasons which we will expand on later.
What is the Plan for a Longer-Term Liquidity Solution?
We want to provide our members with seamless conversions so that they have the freedom to swap any amount of crypto and fiat. However, this will happen organically and we have the following three steps as part of our strategic plan for both the short and longer-term.
1) Successfully Completing the PLIP
Awareness and accessibility to PLU and our services.
2) Increase Token Utility
Provide money-saving features tied to PLU and market the app to acquire 150,000 users in 2021.
3) Overhaul of PlutusDEX to Increase Liquidity
Key update: the DEX will be re-programmed to enable pooling of the fiat side to fuel the payment system on the app. Liquidity providers will be rewarded for their participation in providing conversions for all crypto swaps on the PlutusDEX. This is an initiative that will arrive in the first half of 2021, more info in due course.
Where do I find more information about PLIP and recent updates?
Visit our announcement page which covers all our recent and archived updates here.