Pokeswap price

BALLS

Introducing PokeSwap, the first AMM to flip the incentive structures upside down, by rewarding traders instead of liquidity providers (LPs). We believe other AMMs have had it all backwards; the unsung heroes of any DEX are traders, not LPs, and we have decided to distribute our governance token, BALLS, with this in mind. Volume is what defines success, not liquidity, and we have designed our incentive structure around this simple idea. Whether it is in TradFi, CEXs or DEXs, volume is the key metric for success. When Uniswap surpassed Coinbase in volume that was a monumental achievement, whereas Curve’s 10 figure liquidity pools have mostly gone unnoticed. If we as a community are to capture the exchange market, we must compete for the most relevant metric, volume, and what better way to do this than designing an incentive structure that rewards traders.

Volume Mining, not Liquidity Mining With volume mining, users will be given governance tokens based on their aggregate trade volume on the platform. BALLS tokens will be distributed to traders proportionate to their trading volume over 500 block intervals. All of our mining will be done through trading, while LPs will also be compensated handsomely with the trading fees our high-volume model brings in.

“But if you don’t reward LPs, what if there isn’t enough Liquidity to Trade?” We believe where there is volume, LPs will naturally flock. When there is volume, there is money to be made, and many LPs will recognize this. Take a look at the launch of Swerve or Curve. Without any artificial incentive to be a LP, within an hour of launch, there was more than enough liquidity for traders to buy or sell. Why? There was an opportunity to make high fees when the ratio of volume to liquidity is high. We believe that by simply allowing the free market and its participants to function naturally, issues of liquidity will quickly resolve itself.

What about Impermanent Loss (IL) and the risks of being an LP? With enough volume, trading fees very often outweigh the risks of being a LP. IL has been a frequently discussed topic for other platforms simply due to the lack of volume. These backward incentive models have created an artificially high level of liquidity, resulting in a disproportionately low ratio of volume to liquidity. This has resulted in much lower fees than market equilibrium, and given the illusion that without incentives, risks of IL outweigh the rewards. By allowing for a much more natural balance of volume to liquidity, we believe we can make the platform much more sustainable. All we need to do is bootstrap volume onto the platform, and trust that free market actors will take care of the rest.

The Token BALLS governance tokens are the foundations for the PokeSwap platform. Those who stake their tokens, will not only have the ability to vote on all upcoming proposals, but will also be eligible to claim rewards from trading fees accrued by the platform. Each trade on the platform will be subject to a 0.3% fee paid by traders, where 0.25% will be to the LPs paid directly into the pool, and 0.05% will be converted into BALLS through the market, and distributed to those that stake their BALLS. *Note: Trading fees accrued from the conversion of the 0.05% trading fees to BALLs will not count towards total pool volume, and will not accrue further rewards. This conversion will be set as 0.3% fee to the pool.

Distribution We have chosen to distribute over 90% of the supply, with the remaining tokens reserved for development and the team on a vesting schedule. This will ensure the alignment of incentives between the founders and the community, and help promote the success and sustainability of PokeSwap in the long run.