Hi! If you missed our AMA yesterday, no problem, because we have a text recap for you of the issues discussed. We used chatGPT to help, so don't judge too harshly if you find it too dry. This is an experimental format, and we welcome your feedback. So, enjoy reading!
Overall progress
Over the past month, Tsunami Exchange has made significant strides in terms of protocol upgrades and expansion. One of the most notable developments was the successful integration of real-time oracles into the platform. This integration required our team to form a strategic partnership with a trusted third-party data provider called Pyth Network to ensure the accuracy and reliability of the price feeds. While the process initially posed some challenges, we were able to resolve them, and the integration is now in place.
To test the functionality and performance of the real-time oracles, Tsunami Exchange has added the price feed of Pepe, a popular memecoin, allowing traders to short and long Pepe on the platform. This integration serves as an important milestone for Tsunami Exchange as it demonstrates the effectiveness and reliability of our real-time oracle system. Assuming the addition of Pepe's price feed is successful, we plan to gradually add more tokens to provide our traders with a wider selection of assets to trade.
Another eagerly awaited feature that has been introduced on Tsunami Exchange is the addition of limit orders. Limit orders allow traders to set specific buying or selling conditions for their trades, giving them more control and flexibility. This feature was highly anticipated since the launch of the testnet a year ago and has now been successfully implemented on the platform.
In terms of token listings, we have ambitious plans to expand our offerings. With the integration of the real-time oracles, the platform aims to list a wide range of tokens and financial instruments. This includes level one listings such as Sol and Ada, which are popular and widely recognized in the crypto space. Additionally, level two tokens like Arbitrium, Optimism, and Polygon will be considered for listing to provide traders with more options and opportunities. Moreover, Tsunami Exchange intends to embrace the emerging trends in the cryptocurrency market by exploring the listing of AI coins, memecoins, and network-related coins like Mana and Sand. In line with our mission to become a comprehensive trading platform, we are also preparing to list commodities like gold and are actively working on supporting Forex and stock markets.
Looking ahead, our team is focused on implementing additional features to enhance the trading capabilities on the platform. One of the key developments in progress is the introduction of stop limit orders, which will provide traders with even more control over their trades by allowing them to set specific stop loss and take profit levels. This feature will empower traders to manage their risks more effectively and execute trades automatically based on predefined conditions.
Furthermore, the team is actively working on creating highly efficient spot markets and refining the user interface to enable seamless one-click trading functionality.
These enhancements aim to streamline the trading process and improve the overall user experience on the platform, making it more accessible and user-friendly for both experienced and novice traders.
Big spoiler of the new tokenomics
The current state of the TSN token and its price is something we need to address to make the token more valuable and the overall economics more sustainable. Currently, TSN token captures 30% of the protocol revenue, including fees and liquidation penalties, which are distributed evenly among stakeholders. Those who choose to farm TSN enjoy higher APY due to compounding and receive rewards in the form of TSN instead of XTN. However, there is currently little incentive for new investors to buy the TSN token, especially with a low staking APY of around 1-2%.
To improve the token's performance, we need to create more buying pressure for TSN. Currently, TSN is sold by liquidity providers as rewards, which negatively affects the price due to the lack of buying pressure. Additionally, 1,200 TSN tokens are went to the market weekly, leading to sell pressure outweighing the buy pressure. Although TSN's limited supply makes it perform better than other farming tokens, we can achieve even better results.
To address these issues, I propose the following adjustments to the TSN economics. First, the TSN rewards of 30% will remain the same. Next, we will work with LP APR to distribute TSN rewards to liquidity providers. The purpose of this is to offset any losses experienced by liquidity providers when traders win, creating a more predictable APR for stakers. If the liquidity provider's APR is lower than a proposed reasonable level (15%), TSN rewards will be added automatically. When the natural APR is higher than a minimum APR, there will be no TSN rewards.
Furthermore, when the XTN price reaches a new all-time high, we will use half of the income generated to buyback TSN. This will support liquidity providers during market conditions that heavily benefit them and increase the predictability of APR. When the XTN price dips below the APR, all staking income will go towards increasing the XTN price, ensuring a relatively stable market.
Lastly, I propose allowing users to lock their TSN in farming for a certain period, such as one, three, or six months, to increase their farming power. Locking for a longer duration will provide more farming power, attracting users who are committed to the project's long-term success. However, users will still have the option to exit at any time, but with the same farming power as before.
These proposed adjustments aim to create a more sustainable and predictable TSN tokenomics. By smoothing out the APR for liquidity providers and incentivizing TSN holding, we can enhance the token's value and attract more participants to the ecosystem. The buyback program using XTN staking rewards will further support liquidity providers and contribute to the overall stability and growth of the TSN token.
I would like to open the floor for questions and feedback regarding these proposed changes and their potential impact on the Tsunami Exchange ecosystem.
Thank you for reading,
Your Tsunami Team 🌊