Hey everyone! Just another update post from the UniDex team.
We’ll be covering topics related to the competition, new revenue split for the leverage protocol, new incentives for swaps, ETHDenver, and just a general progress update.
Trading Comp Overview
For the "King of the Hill" competition, 0x17e07.eth took the lead after 19 days. 2nd place needed roughly three more wins in order to secure the first place spot, and 3rd place needed around 8. We feel like this was a good test run for breaking the traditional comps perp exchanges run. We do feel it’s a really good model for letting the little guy have a shot at taking some stuff home. Over 5k in USDC will be distributed outside of the winning reward just for holding a spot on the leaderboard each day. We do feel as if on-chain trading comps are still harder to execute since % PnL comps make it too hard for smaller balances to enter, and raw PnL makes it impossible for smaller balances to compete. We'll hold off on the next comp and incentivize the new swap platform since matching orders will play a key role in showing off its capabilities.
New Leverage Revenue Split
For the leverage protocol, we're going to be moving with a 60-30-10 split (effective immediately). Currently, the split is 60-20-20 as LPs earn 60% of the fees, and the team and holders both earn 20%/20%. Once the aggregation terminal for leverage trading goes live, the split will be further distributed to 45-40-15 given in house LPs no longer become a main focus. The increased volume capability will attract significantly larger traders allowing for better utilization and hopefully more constantly maxed utilization of the in house market making pools.
In summary, holders would be receiving approximately a 50% increase in the short term for fee revenue & a larger 100% increase ( compared to now ) once leverage v3 is fully rolled out. Keep in mind, as part of the new leverage contracts which support limit orders, referrals, and more fine tune control of fee extraction. Holders will be receiving roughly 150% more revenue from liquidation orders, from 4% of the liquidated margin to 10% of the liquidated collateral.
SwapV3
We want to touch a little on the new swap aggregator v3. As some have been following, the new protocol allows for matching orders between participants (see cowswap for examples). We want to incentivize people to use the swap platform as many more "meta-aggregators" are popping up now that defillama has popularized them. This would provide a direct financial incentive to use the platform and greatly improve the aggregated swap fills with all the OTC swaps bypassing AMMs. There are a few ways to do this, but referral links would be ready & volume based rewards to get things initially going would be our path forward.
Oh and a reminder! since V3 uses a settlement contract, it means that any of these new meta-aggregators like defillama’s that are based on our v2 aggregator. They can now plug in our meta-aggregator settlement layer as a routing source just like cowswap is plugged in on ETH and gnosis chain. This means even if llamaswap accounts for all volume for swaps in the future, that volume would still be settled by our protocol since we would be providing the best rates out of the existing single aggregators.
ETHDenver
ETHDenver is coming up and we'd just like the remind people about it. We are a sponsor, and we do have our own show booth there. Just like last year, we will be meeting a ton of people and spreading the word about what we're building, except this time we have our own shill zone. Roughly 20k people went last year when we attended so there will be a lot of eyes on the platform. If you can attend, try and make it to meet some of the team in person!
General updates
Going to finish this off by talking about a few updates we're rolling out soon + general information.
On the new swap UI, we're rolling out a debank connected portfolio view that lets you see a quick glance at your wallet. Lots of functionality packed here such as breakdown over time, recent transactions, and holdings across networks + total aggregated balance.
The V3 leverage platform will have a new UI built from scratch. With that in mind, we will also deprecate the current frontend as we spend all our focus on the new frontend instead. With the same idea as the V3 Swap UI, this new frontend is heavily focused on multichain capabilities leveraging frame and rabby wallet’s new omnichain functionality, ultra fast data delivery, UI flexibility, and super informative details for your trades. Just a reminder this UI isn’t trying to cater to entry-level traders. There is no point in bottlenecking a very complex financial instrument with a simple UI otherwise platforms like Binance, FTX, ThinkorSwim, etc would have never gained any traction. The platform is designed for users who want to place $50,000,000 size positions, not users who don’t what a "funding rate" is.
We're putting a lot of good work on our app chain which did have a small direction change as some have picked up with small teasers we've made. We do want to stay focused on short term goals with the platform so we will be sharing more details this quarter about the early access testnet + mainnet. We are waiting for a fairly important update on the app chains ecosystem hub to ship out before we can even hit mainnet. So even if we wanted an earlier release, we would still be waiting for the hub chain to roll out an upgrade. In the meantime you can learn more about app chains like the one bankless did about the OP stack upgrade which moved to testnet earlier this week.
As the last point, we are having our token be bridgable to Arbitrum very shortly. This one will be handled by synapse but requires no additional work for existing holders. Moving forward new networks we expand the token to will be done via our friends at synapse.
Thats all we wanted to share for this week! Keep spreading the word and have a good weekend.