🐕About DogeSwap
DogeSwap, bridging gaps.
Last updated
DogeSwap, bridging gaps.
Last updated
DeFi projects of any model or size typically contain niche markets ranging from nano to micro-economies.
Whether it’s a DAO token, a ‘metaverse’ world, or an NFT project with a token, small project economies and their assets are typically split across different DeFi marketplaces, DEX’s, etc. Liquidity becomes thinner. As a result, most projects find themselves with some form of inefficient pricing within their project market economy as a whole.
DogeSwap incorporates NFTs and their related Utility Token into the same DeFi liquidity pool aiming to collateralize assets within a project market. With an AMM algorithm tying the two assets together, the pool incentivizes steady price correlation while holders of both assets would be able to profit from arbitraging that markets.
With both project assets backing the pool, it now encourages Liquidity Providers (LP) to participate in holding both assets of a project, Doge NFTs & $DAWG token in the example of Doge Capital's economy.
LPs of the pool will still earn fee income proportional to their share of committed liquidity.
DC = Doge Capital
LP = Liquidity Pool (and/or) Liquidity Provider
Knowingly or not, each type of DeFi project inherently contains an economic market for their assets. NFT projects with DeFi tokens are an easy example to use considering Doge Capital’s project market includes our NFT’s and DAWG token.
Since the official release of both our assets, they’ve been split across different markets. Till this day, market(s) for DC NFT’s exist on multiple NFT marketplaces while our DAWG token market exists within a traditional DeFi LP pool on a standalone DEX trading against SOL.
Given a considerable amount of DeFi projects have similar economic structures, it’s natural for their assets to experience less than efficient pricing in markets with less than total liquidity.
While it is unlikely to gather total liquidity and create a perfectly-efficient market, the DOGESWAP model helps consolidate for optimization.
For starters, the DogeSwap pool model is filling a systemic hole in the Doge Capital project economy by directly linking our NFTs to DAWG token.
After the platform is released, it will only become more efficient as our holders utilize the arbitrage tab, new users enter our community, and usage increases. This will put Doge Capital in a unique position to share our platform with other projects, and solve similar pricing issues for other projects as a whole.
It’s easy to say the possibilities are endless, so here’s some future potential use cases:
Project Revenue
In the absence of royalties, projects have lost the ability to generate revenue while centralized platforms are still able to collect fees from their holders.
DOGESWAP will essentially allow project teams to create their own market and instead of other marketplaces taking their trading fees, project teams can earn the fees themselves by providing liquidity to their own pool.
Holders still won’t have to pay royalties and their NFT pricing will become more efficient. A win-win for everyone involved.
Future Assets
Launching a token is already hard enough. DogeSwap makes it easier by incorporating underlying project tokens directly into their existing NFT market.
Integrating other collections would multiply the number of opportunities for Doge holders to profit from the arbitrage while continuing to earn fees.
DAO Perks
By including a DAO-governance token in a DogeSwap pool, it can help encourage holder participation in the DAO (remember, you must hold both assets to use a DogeSwap pool).
DAOs will also be able to build upon our platform and create holder-only tabs (like arbitrage) or provide project analytics that make it easier for their holders to manage investments in the project.
Doge Capital is one of the longest-lasting projects on Solana to this day and the team remains committed to building.
DogeSwap will release mid march for beta access, and we look forward to expand on the platform, and even moving its capabilities cross-chain.
