DFI Money (YFII) merges with SakeSwap (Sake SAKE), including development and community resources and new project asset issuance.
After discussions and voting at the 12th Management YFII Committee meeting , a merger between YFII and SakeSwap has been voted in, which will deepen the DeFi Ecology layout.
Merger specific directions:
• SakeSwap will provide YFII with premium developer resources. Both projects’ interfaces will merge and be optimized
• SakeSwap launches ILO (Liquidity Crowdfunding Platform). After the merger, YFII plays to the community’s strengths and will introduce Polkadot, Near, Conflux, Flow, Heco, BSC and OKChain assets on SakeSwap for initial issuance and liquidity crowdfunding. It will provide quality ground floor assets for YFII’s Vaults.
• SakeSwap Launches Synthetic Asset Trading and Derivatives. Introduces off-chain assets like stocks, commodities and other equities into the Vault and other DFI Money DeFi services.
• The YFII DeFi Fund will be established. SAKE and YFII community users will get more opportunities to participate in quality DeFi projects early and share the dividends of cooperating projects.
Following this merger, DFI Money will participate in SakeSwap’s governance.
AMM (Automated Market Maker) DEXes have caused an evolution in the Defi world, since they are changing the way users trade their cryptocurrencies. The creation of the liquidity pool enables traders to easily swap in a fully decentralized and non-custodial way. By utilizing the innovation of AMM, Uniswap becomes one of the most successful DeFi projects. And we notice that lots of projects are attempting to improve AMM design with their own implementations.
Sushiswap, a Uniswap fork, brings us an AMM with the SUSHI token, which is a governance token. Unfortunately, Sushiswap didn’t do any improvement to the case of impermanent loss.
Inspired by Uniswap and Sushiswap, SakeSwap aims to improve the design of AMM in terms of price curves and contributor rewards. Let us explain more about our unique design.
🍶 Why SakeSwap?
SakeSwap is a fork of Uniswap and Sushiswap but with some key improvements.
- SAKE token
The SAKE token has two functions, which are entitling SAKE holders to governance rights and a portion of the fees paid to the protocol. Eventually, SAKE holders will own the protocol. SAKE tokens can entitle liquidity providers and traders to continue earning the benefit of the protocol development, which means the early adopters will be significant stakeholders of SakeSwap. Meanwhile, SakeSwap involves tokenomics of deflation to support the token price from a structural perspective.
◦ total supply
Unlike SUSHI Token that has unlimited total volume, we set SAKE token a limited total volume to avoid dilution and maintain project sustainability. Details of SAKE token distribution is explained in the Token Distribution part.
◦ burn and reward distribution
SakeSwap follows the transaction fee distribution of SushiSwap, namely 0.25% goes directly to the active liquidity providers, while the remaining 0.05% gets converted back to SAKE (obviously through SakeSwap). 90 % of the remaining 0.05 % will be burned and the rest 10 % will be distributed to SakeBar participants who deposit their SAKE to SakeBar.
- 50 % slippage capacity
Instead of arbitrators acquiring all the slippage in Uniswap, liquidity providers in SakeSwap are enabled to capture profits otherwise captured by arbitrageurs with virtual trading curves. In the case of spatial arbitrage, the AMM collects 50 % slippage capacity from arbitrage traders. As a result, the other 50 % will be shared among liquidity providers. The 50 % slippage capacity for liquidity providers can enlarge LPs’ income to ～200 % compared to transaction fee as income.
SakeSwap ILO
After the successful launch of Swap, SakeSwap focuses on the development of the Asset Issuance Platform + Swap, positioning itself as coinlist + swap. The new feature, ILO (Initial Liquidity Offering), is an innovative crowdfunding mechanism that creates AMM liquidity pools directly for projects and investors. With ILO, projects built on Ethereum and Polkadot will be able to easily raise and exchange capital in public and develop from stage 0 to 1 with higher liquidity utilization.
What can ILO bring?
For Projects
- Projects can list their tokens and use the platform to raise funds with lower cost and simpler process.
- A seamless fusion of token issuance and trading.
- The “Liquidity Provider (LP) Token Lock Period” feature can provide ILO projects with more stability.
- The Community Voting provides ILO projects and their investors with increased transparency.
For Investors
- Investors, whales or retail traders will get the same opportunity to obtain priority access to ILO listings.
- Projects and investors will become Liquidity Providers after ILO and receive Liquidity Provider (LP) Token according to the scheduled LP Unlock Frequency.
How can ILO maximize the liquidity utilization?
- Projects only need to provide liquidity for the Project Token and investors to contribute the Fund-Raised Token. Once an ILO is successful, a liquidity pool with the Project Token/Fund-Raised Token at a ratio of 50/50 will be automatically created on SakeSwap.
- LP Token from the liquidity pool with the Project Token/Fund-Raised Token will be distributed to projects and investors according to the scheduled LP Unlock Frequency. LP tokens can track the contribution to the liquidity pool and are used for distributing shares of the transaction fees accumulated.
Tokenomics
There is a 0.3% fee on each SakeSwap transaction with 0.25% rewarded to LP token holders, 0.045% for buyback and burn SAKE, and the remaining 0.005% will be distributed to the SakeBar. SakeBar will be replaced by LockBar. The LockBar will distribute every 12-month.
The SAKE token has 2 functions. It entitles SAKE holders with governance rights and a portion of the fees is paid to the protocol and eventually the protocol will be owned by SAKE holders. It also entitles liquidity providers and users to continue earning benefits from the development of the protocol, which means the early adopters will be significant stakeholders of SakeSwap.
SakeSwap involves tokenomics of deflation to support the token price from a structural perspective. Meanwhile, the rising awareness of SakeSwap ILO will pose a very significant influence on the price of SAKE token.
How to participate in ILO?
When a decentralized project wants to raise funds through SakeSwap ILO:
- The project is required to create an ILO listing on the ILO landing page which should include the outlines of the Project and Token Info, Pool/Liquidity Cap, Investor Access & Contribution Limits, ILO Dates & Token Unlock Period, Project Owner Contact and other project details.
- After submitting the ILO information, a SakeSwap Community Voting will be created on Snapshot. The SAKE community has the final decision on which ILO project to go live on SakeSwap.
- The ILO projects will need to provide the project tokens to SakeSwap ILO smart contract upon the approval from the SAKE Community.
- If the funding requirements are met within the specified timeframe, an AMM liquidity pool with the Project Token/Fund-Raised Token will be created on SakeSwap which means the Project Token will be tradable immediately. If the ILO does not meet the minimum cap required by the project, all fund-raised tokens will be released by the smart contract which means the investors will get back the tokens.
- Project and investors will receive a certain amount of LP token as the proof of liquidity provision. There will be a Lock Period for LP release which is set up by the ILO project when creating ILO.
- With the LP token, holders can participate in the SakeSwap Farming to earn SAKE rewards and more airdrop campaigns will be launched for ILO participants.
When creating ILO, projects can choose ETH/ WBTC/ USDT/ USDC/ DAI as the fund-raised token. All funds are protected by the Ethereum smart contract. Currently, SakeSwap ILO is only deployed on Ethereum. The deployment on Polkadot will be in the future pipeline to help more good projects raise funds in a decentralized and efficient way.
More about SakeSwap here and Here
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