StableXSwap Project Insight: A Stable Coin Focused Dex

StableXSwap has become one of the most efficient places to trade your stable-coins through utilizing their AMM and unique fee incentive structure.

By
Rich
on
February 28, 2021
Category:
Project Insight

Introduction

StableXSwap launched on the Binance Smart Chain (BSC) in October 2020, bringing their efficient stable-coin focused AMM (Automated Market Maker) and yield farms to the BSC landscape.

This protocol aims to be a leading stable-coin exchange, much in the liking of the Curve.fi on the Ethereum Network. The team seeks to expand upon this model utilizing the BSC's high-speed transactions and low gas fees. 

For those who wish to learn more about AMM's and Dex's refer to the following articles:

Cryptonomics: Automated Market Makers

Cryptonomics: Decentralized Exchanges Explained


Token Swaps & Liquidity Incentives

The AMM swap interface is simple and easy to use. If you have used UniSwap or PancakeSwap before, the StableXSwap AMM will give you no trouble as the interface is the same. There currently are five supported stable-coins $BUSD, $DAI, $QUSD, $USDC and $USDT. Pretty straightforward and simple. These pools aim to provide users with the most efficient stable coin swaps, reducing slippage and other costs.

StableXSwap also offers yield farming; the rewards are paid in $STAX. There are six liquidity pools users can choose from:

STAX/BNB

STAX/BUSD

BUSD/USDT

BUSD/DAI

USDT/DAI

USDT/USDC

The STAX liquidity pools boast the highest APY's (average percentage yield) at about 150%. These rewards are much higher than the other stable coin pools as they contain more impermanent loss risk.

To receive yields, users must provide liquidity to StableSwap in return for liquidity incentives in STAX. It is as easy as adding liquidity and then staking the LP token respective LP given in return for providing liquidity.


STAX Token

The $STAX token is the StableXSwap native governance token. The token can be acquired through liquidity rewards or purchased on the PancakeSwap AMM. To earn the most rewards, users can provide liquidity to the $STAX pairs, making even more $STAX.

The $STAX token has a market cap just shy of 30 million Dollars and a circulating supply of 16,608,353 tokens at the time of writing. There are currently two $STAX minted every block to incentivize liquidity and bootstrap, initial users. To combat this, the team has incorporated a deflationary measure by performing regular buybacks and burns to reduce inflation.

There is a 0.04% base fee on every transaction that will be split up between liquidity provider rewards (20%), contests (25%), staking rewards (50%), and the remaining 5% will be burnt. This makes the $STAX token stronger and thus benefits the community. As the token is the governance token, StableXSwap holders can vote on different proposals, making the project decentralized.

Don't worry, there is more! Holders of $STAX tokens are granted VIP status just by holding an X amount in their wallet. The VIP benefits consist of withdrawal fee rebates and trading fee rebates, the more tokens you have, the higher your VIP status will be.

For holding $STAX you will get % off withdrawal fees:

VIP 1 1000 STAX = 20%
VIP 2 2,500 STAX = 30%
VIP 3 5,000 STAX = 40%
VIP 4 10,000 STAX = 50%
VIP 5 50,000 STAX = 60%
VIP 6 100,000 STAX = 75%
VIP 7 250,000 STAX = 88%
VIP 8 500,000 STAX = 100% 

Starting from VIP 4, you will also get a fee rebate:

VIP 4: 5% Fee Rebate
VIP 5: 10% Fee Rebate
VIP 6: 15% Fee Rebate
VIP 7: 20% Fee Rebate
VIP 8: 25% Fee Rebate 


Audit 

The StableXSwap contract has received an audit from AtticLab. The audit report found no critical vulnerabilities, but it made few suggestions that the StableXSwap team has since amended. It is essential to note that audits are not the whole grail of smart contract security as many audits have missed crucial vulnerabilities. Overall, an audit does drastically increase the odds of apparent smart contract risks, and the team has another audit planned shortly.


Future Plans

Moving forward, the team plans to create an insurance fund for users to stake $STAX. Also, the integration of stable-coin pairs from their AMM for yield farming is intended. This will allow StableXSwap to host its own liquidity as it currently uses PancakeSwap LP's. On top of these developments, the team also plans to integrate the following:

  • Additiona stable coins $USDX and $VAI
  • Analytics page
  • Single coin staking.
  • Collaboration with lending protocols like Cream and ForTube


Summary

StableXSwap has become one of the most efficient places to trade your stable-coins through utilizing their AMM and unique fee incentive structure. They provide fast, simple, and inexpensive swaps, especially if you are a holder of $STAX tokens. As mentioned above, those who are eligible for VIP status receive a sizeable discount on trading fees. On top of this, the protocol provides traditional liquidity incentives that are simple yet effective. The incentives offer users decent APY's, and more farms are expected. The audit helps assure the project's security, but of course, it is no guarantee that smart contracts are secure.

Check it out for yourself and have a look at their website and social media pages for more information:

Website

Twitter

Medium

Telegram


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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.