SheepDex — Decentralizing Binance
In the last few months, the crypto space has repeatedly been attacked with unpleasant news. Chinese govt has banned crypto mining activities which then ended in the extension of the ban on trading activities to its citizens. It led to all exchanges ceasing services to all Chinese users. This raises concerns in the community for the possibility of other countries following the Chinese govt’s move. But that’s not something to worry about. If that happens, while waiting for regulatory certainty and the removal of the ban, you will still be able to trade using Decentralized Exchanges (DEXs) and SheepDex is one of those DEXs.
SheepDex is the first V3 DEX on BSC created with the vision of decentralizing Binance. This newly launched DEX is not your typical Pancakeswap or Uniswap copycat. Basically, SheepDex has the same features as other popular DEXs but with improved features and multi-reward mechanisms. Here are the features of SheepDex:
1. Swap
On SheepDex you can trade (buy or sell) the listed cryptos in an easy and simple way via Swap. It’s like a market order on CEX. By trading on SheepDex, you will not only be able to trade seamlessly but will also earn SPC (SheepDex tokens) if you trade on the specified pairs. SheepDex allocates 25% SPC of the total supply for this transaction reward.
Besides that, you can also trade with the range order feature. It’s like a limit order and you can use it to sell at the top or buy at the bottom. You can trade according to the price range you set by providing liquidity with a single token. For example, if you wish to sell BNB at a rate of 1 BNB = 1000 BUSD, first go to the Pools tab to add a new position and select the BNB and BUSD pair there. After that, set a price range around 1000 BUSD and enter the amount of BNB you want to sell. It should look like this:
When BNB hits a pre-set price range, BNB will be gradually converted to BUSD. Please note, you need to withdraw your liquidity when it is fully converted. Otherwise, BUSD will be converted back to BNB if the BNB price drops below 1000 BUSD.
2. Provide liquidity
SheepDex allows users to provide liquidity within a full price range (0 to infinity) or at a specified price range. If you provide liquidity in the full price range as in other DEXs, you will get normal rewards. However, if you concentrate your liquidity in a certain price range, you will get more rewards. There are also 3 fee tiers (0.1%, 0.2%, and 0.5%) for users who wish to take more risk of impermanent loss to earn more rewards.
To provide liquidity, the process is more or less the same as the range order feature. For example, if you think BNB is going to fluctuate between 450–500 BUSD, you can provide liquidity by concentrating liquidity in that range. To do so, go to the Pools tab and click New Position there. After that, select the token pair, in this case, select WBNB and BUSD. If the token pair is selected, set the min price at 450 BUSD and the max price at 500 BUSD. The amount of WBNB and BUSD that needs to be added according to the set price range will be automatically displayed in the respective fields. Once liquidity is added and BNB indeed fluctuates between 450–500 BUSD, the liquidity you provide will reward you more. It should look like this:
Providing concentrated liquidity allows a user to formulate his strategy in maximizing the capital owned to get as much profit as possible.
3. Yield farming
Stake the liquidity you have provided to get more rewards. SheepDex allocates 25% SPC of the total supply for yield farming reward.
SPC tokenomics
SPC is a token of SheepDex with a total supply of 90 million SPC. Block time is 3 seconds and the block reward is 5 SPC per block. Rewards will decrease by 20% every 90 days. Tokens are allocated as follows:
- Transaction reward: 25%
- Yield farming: 25%
- Private placement: 10%
- Investor: 10%
- Team: 8%
- Marketing: 5%
- Brand: 3%
- Airdrop: 2%
- DAO: 2%
SheepDex is created to solve two main problems in the DEX protocol namely liquidity and slippage. With multi-reward mechanisms such as transaction mining, yield farming, and handling fee refunds, LPs will be rewarded much more. In the end, liquidity will flow into SheepDex to solve the problem of insufficient liquidity and the large liquidity will facilitate faster, more convenient, and low slippage trading.
For information on the pairs available for transaction mining and the pools available for farming, please visit the SheepDex website.
SheepDex just launched on October 10th, it’s not even 1 month yet but TVL and volume are already huge and increasing constantly. At the time of this writing, TVL SheepDex is close to $50M with a 24-hour volume of $42M. If you are worried about security, SheepDex is safe. SheepDex was audited by Certik.
Is SheepDex going to be the first sheep to land on the moon? Let’s find out about it. For more information, please visit the SheepDex website and social media:
Website: https://www.sheepdex.org/#/home
Medium: https://sheepdex.medium.com/
Twitter: https://twitter.com/SheepDex
Telegram group: https://t.me/SheepDex
Author BSC address: 0xDd314F72c7aE970d02BEb51A776228FA8957bF45
