YFDAI’s SafeSwap DEX, The Next Evolutionary Step Forward in DeFi Has Launched
YFDAI is proud to announce the launch of our Decentralised Exchange, SafeSwap. As per our original vision, SafeSwap is meant primarily to be the landing place for YFDAI LaunchPad projects. The original vision and concept was to eliminate illegitimate projects by vetting all new projects that go onto LaunchPad and SafeSwap. This business model is experimental as it relies on the community to provide the liquidity for the LaunchPad and SafeSwap tokens by purchasing the project tokens at the pre-sale and then locking the raised ETH in SafeSwap for a year or more.
This concept is an evolutionary step forward from Uniswap which allows any project to launch on their platform, including illegitimate projects which have no intention of following through with their business development and every intention of pulling the liquidity out during the token generation event or shortly thereafter. This “rug pulling” strategy of the scam projects is so rampant that more than 70% of the projects launching on Uniswap turn out to be scams. The lack of vetting enables unethical actors to pull the rug out from under the investors via malicious code in the smart contracts including minting functions and other exploits. This is a betrayal of the trust that investors place in these projects by purchasing the new project tokens, or providing liquidity for the new project tokens. SafeSwap and LaunchPad will put an end to this.
The DeFi model and DEX’s in particular are a relatively new phenomenon, and their volume has risen over 2020 into the billions of dollars, only to drop in response to the large number of scams scaring investors away. In addition to these changes in the market dynamics, the legal landscape has begun changing, as regulators are becoming more heavy-handed in their enforcement of existing regulations. We have seen with the recent takedowns of Bitmex, Okex, and, most recently, the SEC’s lawsuit against XRP. The impact on XRP has been dramatic. The price has fallen 70% from over US$0.60 3 weeks ago to a low of $0.19 in the past 24 hours. In addition they are to be de-listed by exchanges including Coinbase and Binance.
It is therefore vital for YFDAI to transition to community governance via our DAO in the immediate future. The plan is to remain sufficiently decentralised as to be immune to the “Travel Rule” requirements, which impose KYC on all users and require recording of all transactions and frequent filing of suspicious activity reports. The timing of the release of the DAO in conjunction with the release of SafeSwap and LaunchPad is a core part of our original vision, as laid out in our Whitepaper.
These are important variables in play for 2021 and beyond. It will soon be time for proposals to be submitted and voted on by the YFDAI community regarding the trajectory of SafeSwap going forward. We have several proposals in mind that we will shortly be submitting for community vote as to the best way to remain compliant while maximizing the success of SafeSwap as a safe and secure environment for trading and investment.
Each of the partners who will list today, Ferrum and Dextools, will be providing US$5,000 of tokens to be paid 50% for Farming on the SafeSwap Platform and 50% for Staking plus the initial liquidity for trading. In addition, there will be profit sharing of the trading fees. Of the 0.30% total fees per transaction, 0.25% will go to the liquidity providers and the 0.05% will be distributed according to the Whitepaper as follows:
The pairs are NOT in the usual ETH/FRM form you are used to seeing on Uniswap, but rather in the form of YFDAI/FRM; YFDAI/DEXT; and soon YFDAI/DDIM.* So when you enter the token address to purchase the partner’s tokens, you have to enter their contract address and YFDAI’s contract address as the token being used to purchase as we have not included an
*Liquidity for DuckDao is still pending (will be added shortly).
ETH/xTOKEN pair. To purchase YFDAI on SafeSwap you need to purchase using USDT.
Additional tokens will be added to SafeSwap with a target date for new listings of February 1, 2021.
Rewards from SafeSwap and other platform fees will accumulate and will be distributed quarterly beginning 3 months from today (~March 28, 2021). Those who have staked or farmed for 30–120 days ending on March 28, 2021 will have a multiplier applied to their platform fee share earnings as follows:
SafeSwap is a fork of Uniswap. It has much of the same functionality as Uniswap. Unlike Uniswap, which allows anybody to list any project, the SafeSwap exchange, will only list and support projects that meet YFDAI’s rigorous criteria. The requirements for listing on SafeSwap include, but are not limited to, pre-locking tokens, pre-locking liquidity, passing protocol, and smart contract audits. With SafeSwap, users will finally have the ability to deal in DeFi protocols in a safe environment, and with peace of mind.
SafeSwap represents a huge step forward in the DeFi space. Decentralized exchanges (DEXs) are becoming ever more popular, especially following the recent hacks of prominent centralized exchanges as well as enforcement actions against non-compliant exchanges like BitMex and OKex. According to Coinmarketcap, daily volume on decentralized exchanges currently exceeds US$1.3 billion. The top 5 exchanges, Uniswap, Sushiswap, Curve, 1 Inch, and Venus, control more than $1 billion of that volume. These protocols are running the automated market maker infrastructures that also function as decentralized exchanges.
It is apparent that Uniswap currently holds the first-mover advantage. However, by making SafeSwap a safer venue, YFDAI will sustainably grow trading volume and gain market share over time. The DeFi Cryptocurrency markets are still in their infancy; so as DEXs improve, they will continue to funnel away market share from the centralized exchanges (CEXs),and grow along with trading volumes and market capitalisation growth in the crypto space. With YFDAI Finance capturing just 1% of the total addressable daily volume market in DeFi, monthly volume on SafeSwap would exceed $390m. Increasing that ratio to 10% over time, the monthly volume would exceed $3.9 billion. Based on the above figures, that would generate anywhere between $1.17m — $11.7m in monthly fees.
Having built the platform, and populated it first with two of our trusted partner tokens, to be followed by listings of Launchpad client tokens, the community must make some decisions on how to attract liquidity to the platform. Competitors have been issuing governance tokens such as Sushi Swap’s Sushi token, which then resulted in Uniswap also issuing UNI by airdrop in response. Most recently 1Inch has also issued a native token as well. One of the proposals that we will be submitting for community vote is the issuance of a second token to be used for governance of the SafeSwap exchange. In addition to this we are also planning on issuing NFTs as a reward for Liquidity Providers to migrate to SafeSwap projects. We have recently brought onboard to our team an NFT project manager — Carlos Melger. Here is his BIO:
Entrepreneur and Digital Marketer
Carlos joins the YFDAI team as a marketing advisor and NFT project manager. His recent success creating the NFT strategy for Bondly Finance makes him a welcome addition to the team. He brings a world class art team that’s worked with brands like BMW, Mercedes Benz, Universal, Warner Brothers and more. Our NFT collectibles will not only be beautiful, but also packed with tons of utility and serve as a tool to educate the space on our product family and launchpad projects.
In typical YFDAI fashion, we are allowing the community to participate in the entire process and some of our loyal followers will even have the opportunity to be immortalized as characters in our NFTs.
We are excited to reveal some of our designs soon!
Here are some examples of the work product of Carlos and the Undercover Media team:
Carlos plans on adding MP3 soundtracks and 3D animation to these amazing NFT designs, and YFDAI will be encoding the metadata that will include different reward incentives like we have already done with the other 2 NFTs we are developing for the Farmers and SafeTraders.
Community team members and loyal community members will also be immortalized as part of the YFDAI family by having their very own NFT designs. This is something that should generate lots of enthusiasm in all our channels.
These are some of the clients of Undercover’s art team:
Here is a link to a video of some of the animation of Carlos’ art work team:
You can start using safeswap now via this link:
When governance is rolled out in early January we look forward to offering our NFT liquidity strategies up for voting and propelling SafeSwap and YFDAI to the very top of the DeFi ranks !!
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