“The first profit-sharing DEX that compensate for its ecological footprint to eco responsible NGOs”
Dear Coralians, the time has come for us to launch the phase 2 of our project. Coral DEX is now live and we aim to offer better returns to liquidity providers and at a lower fee cost for the users than what is offered by the concurrence.
DeFi protocols like Uniswap, SushiSwap, or PancakeSwap have seen an explosion of volume and liquidity since last summer. These liquidity protocols enable essentially anyone with funds to become a market maker and earn trading fees. Democratizing market-making has enabled a lot of frictionless economic activity in the crypto space.
As of today, you are now able to add liquidity into our own DEX in order to get CLP = Coral Liquidity Provider Tokens (name of the token as saw in the metamask wallet / bsc scan).
The Coral DEX uses an Automated Market Maker system to allow trades to be done without any third-party control (no KYC, no required account, no middlemen, ability to trade on newly created token). As you may know, an AMM removes the need for order books and allow everyone to become a market maker (for more details you can read this article from the Binance Academy).
When exchanging on the Coral DEX, the exchange will automatically find the best price for you to either sell or to buy (using a pool routing system).
What are liquidity pools :
By depositing a pair of tokens (CRL and BUSD for example), a provider will receive a CLP tokens (Coral Liquidity Provider Token) corresponding to that pair (CRL-BUSD CLP).
Every time a user trade between CRL and BUSD, a 0.196% fee is taken on the trade (which is a lower % than the concurrence), on which 0.171% goes into the LP pool (which is then accrued for the liquidity provider).
The remaining amount is then being used to redistribute to CRL holders and to our NGO program (aka dedicated wallet) related to Oceans and Coral Reef protection.
Keep in mind that by providing liquidity on a non-stable asset you could be exposed to impermanent loss. Impermanent loss happens when the price ratio of deposited tokens changes after you deposited them in one of the pools.
The bigger the change is, the higher the impermanent loss risk is. This is why AMMs work best with token pairs that have a similar value, such as stablecoins. If the price ratio between the pair remains in a relatively small range, impermanent loss is also negligible.
For more details about the impermanent loss concept please have a look at this article.
What are the benefits of both $CRL and Coral DEX?
Holders of $CRL will be able to stake their CRL in order to get a cut on the fees generated. But one of the most important point is that it will actually cost less for the users to swap their token on Coral Dex.
Last but not least, it presents arbitrage opportunities too due to the fact that liquidity is still bootstrapping. You will have smaller fees for the same amount of money than on Pancake Swap since fees are greater there.
The additional incentivization is that your LPs will be able to generate you new CRL if you decide to stake them in our lagoon (farming).
During the next 7 days we will also work on integrating the Coral Dex with Coingecko, Coinmarketcap and also with the differents aggregators (1inch, …), while providing Graph information on trade volume and fees monitoring. We definitly will continue our efforts on the other parts of our roadmap in order to make the Coral ecosytem more complete day after day.