Frogs! As we near the official release of LINKSWAP, we have a few final housekeeping items and information to give to the community. Before we get to that, we'd like to thank everyone for their patience and the diehard community support we've gotten through the last weeks and months. We'd like to note that this certainly is not the end of LINKSWAP updates, as we are committing to a longer term vision with smaller updates, additions, and ancillary support for the dapp. Now then, onto the juice:
Following from the last update regarding the Quantstamp audit, we have returned the code with fixes and received back the final report. LINKSWAP is now a Quantstamp verified and secured dapp, which will enable orders of magnitude greater capital to engage in liquidity provisioning and trading. Our aims were to make LINKSWAP one of the safest, fairest, and most secure platforms available, and we are happy to announce that we have achieved this goal.
Note that there remain a total of three low-risk issues that we have acknowledged, with none of them affecting LINKSWAP at a high level. You can read the full Quantstamp report as well as our fixes and acknowledgements here.
When we initially set out to create LINKSWAP, we had several goals in mind - one such goal was to subsidize and limit Impermanent Loss, which prohibits Liquidity Providers on the whole from engaging and interacting with the supply-side of AMMs due to the potential opportunity cost of providing said liquidity. Our first answer to this was the use of BlackHoleSwap, though this was only useful for stablecoins. Our next proposed solution was Thorchain's Continuous Liquidity Pools, however in our testing we came across a few issues with this:
- LP's were rewarded the further they set the price of tokens away from the actual market price of an asset, incentivizing the mispricing of assets and causing a scenario where an LP simply adds liquidity to new pairs with immense divergences from the real value for profit.
- Slip-based fees could be avoided by splitting transactions into smaller amounts, thus negating the counterbalancing measures that Thorchain CLP provided.
As a result, we took the hard decision to find a different solution that did not have the downsides of Thor CLP.
In our research, however, we did like the concept of slip-based fees, and thus created our own homebrewed feature dubbed SlipLock, as our unique solution to combat Impermanent Loss. SlipLock is useful for a myriad of things, one such example was as a market circuit breaker, as outlined in our reveal post of SlipLock, while it also helps mitigate IL due to increasing fees based on the amount slippage in any given trade. Essentially, fees increase on an exponential curve during a set period of time (and is customizeable by the YFL governance contract) which will help to reduce IL, similar to the way other bonding curves work.
We are excited to announce that Hedera Hashgraph will be sponsoring the release of LINKSWAP, by providing wrapped HBAR (wHBAR) tokens as incentive rewards for LINKSWAPs ETH/wHBAR LP pair as part of their marketing blitz for the launch of their HBAR wrapping platform, which will allow HBAR tokens to be used in Ethereum dapps & DeFi platforms. The new wrapped HBAR token will go live on LINKSWAP on day one, just days after the official launch of Hedera’s decentralized wrapping portal.
Bitcoin pioneered decentralized infrastructure and Ethereum brought programmability. But earlier proof-of-work blockchains consume massive amounts of energy and process transactions slowly in order to achieve acceptable levels of security. Heavy bandwidth consumption by these technologies leads to expensive fees, even for a simple cryptocurrency transaction.
The Hedera proof-of-stake public network, powered by hashgraph consensus, achieves the highest-grade of security possible (ABFT), with blazing-fast transaction speeds and incredibly low bandwidth consumption. By combining high-throughput, low fees, and finality in seconds, Hedera leads the way for the future of public ledgers.
Read more on Hashgraph here.
With the audit complete we now enter final preparations for the official release of LINKSWAP. We are happy to announce that LINKSWAP, farming pools, and related deliverables will be live on the Ethereum mainnet along with all of our launch pairs on November 25th, 2020.
As part of the release incentive program, select LINKSWAP launch pairs will receive a dedicated incentives pool that will award YFL as mentioned in our previous post here. This will look and feel quite similar to UNI LP token vaults, where an LP deposits their liquidity pool tokens to a specific vault to earn these rewards. In addition, certain ‘sponsored’ pools will receive ADDITIONAL rewards over their YFL reward allocation-and these rewards will be distributed as native tokens. For example, the ETH/BONK pool will award both YFL and BONK as a staking reward (as well as a limited run NFT), while the ETH/MASQ pool will award both YFL and MASQ as a staking reward.
While not all incentivized pools will receive additional native tokens above and beyond their YFL allocations, we are pleased to announce the following dual-incentive pools participating in LINKSWAP’s 8-week incentivized launch:
- LINK/YAX - YFL + 12,000 YAX
- LINK/CEL - YFL + 20,000 CEL
- ETH/wHBAR - YFL + 1,600,000 wHBAR
- ETH/BONK - YFL + 40,000 BONK
- ETH/MASQ - YFL + 150,000 MASQ
Other incentivized pairs will include LINK/USDC, LINK/USDT, LINK/DAI, LINK/ETH, and YFL/ETH + YFL/LINK with reward multipliers!! Further detail on launch pairs and incentives will be shared over the next few days, along with marketing graphics the community can share with friends and ecosystem groups!