Dear Movrines, as most of you know, we have launched 1Beam last week, the first stablecoin DEX on Moonbeam Network.
While both 1Swap and 1Beam offer the same core service to users— swapping stablecoins at low fees and nearly zero slippage, the economic model of 1Beam is greatly different and improved. We have decided to adopt 1Beam’s model for 1Swap.
1Swap Farming Model
> Our current 1Swap tokenomics are plain vanilla: users provide stablecoin liquidity and receive farming yield via 1SWAP token rewards
> There is no lockup, vesting or additional complexity.
> Farmed 1SWAP rewards are released after 3 months. NO rewards are released during the first 3 months vesting time.
> Rewards can be claimed before 3 months have passed, but a 50% penalty fee is incurred
> This applies both for stablecoin as well as 1SWAP/MOVR LP farms
1Swap Revenue Model
> Right now, all swap fees (0.04% on each trade) on 1Swap DEX are accumulated as protocol revenue in the 1Swap Treasury address
> At the time of writing, there’s over $60k in accumulated fees. These funds have never been distributed or touched in any way.
By adopting 1Beam’s model, swap fees are distributed to users who stake or lock their 1SWAP tokens. There are 2 revenue streams (1 in DAI and 1 in 1SWAP token)
> Revenue 1: Whenever a swap on 1Swap DEX takes place, a 0.04% swap fee is charged. This swap fee is distributed as DAI revenue.
> Revenue 2: Earn revenue in 1SWAP from the 50% early claiming penalty fee for 1SWAP/MOVR LP and stablecoin LP rewards
Finally, there are 2 ways to earn this revenue
> Option 1: Lock 1SWAP for 90 days to earn Revenue 1 and 2
> Option 2: just stake 1SWAP to earn only Revenue 1
A few notes:
> Rewards can be claimed anytime in both options. For option 1, once locked, the user cannot withdraw his 1SWAP for 90 days. It is NOT possible to pay an early exit penalty to withdraw locked 1SWAP early.
> The first batch of protocol’s fee will be distributed as revenue to 1SWAP stakers and lockers starting this Wednesday, 16 February 2022
> The weekly amount of DAI distributed to stakers and lockers will be determined based on last week’s accumulated fee revenue
> A new UI will be live on 16 February 2022 ahead of launch
The described 1Swap economic changes are value-capturing and give 1SWAP token a great utility, making it more attractive, sustainable and profitable in the coming years.
We expect 1Swap to grow in TVL and market capitalization very soon again and confirm that we remain the stablecoin DEX with the best swap rates on Moonriver Ecosystem since day 1.