Initial Ingredients

Considerations for xOpenX

Recipe for xOpenX:

  1. 1.
    Change initial mint ratio from 1:1 to 3:1.
  2. 2.
    Commit a percentage of OpenX inflation to OpenXBar.
  3. 3.
    Create a six-month lock for the tokens, incentivize users to do so.
  4. 4.
    Make the wrapped token liquid with the underlying token (Liquid Bridge of Value)
  5. 5.
    Create separate layers of liquidity for the wrapped and underlying tokens.
  6. 6.
    Create separate value propositions for the wrapped and underlying tokens.
  7. 7.
    Following (6), create incentives exclusive to the wrapped token.
  8. 8.
    Following (7), create market buy pressure on the wrapped token.
  9. 9.
    Automate (8).
  10. 10.
    Offset emissions in addition to (6) and (7) to ensure (3) is sufficiently incentivized.
  11. 11.
    Allow time and math to do the business of (8) and (9)
  12. 12.
    Educate arbitrageurs. Performing this lock of value is *profitable* for them.
  13. 13.
    Designate the wrapped token as project's Governance Token. Make it compelling.
(1) This is to prevent this first entrants in the project from accumulating a massive amount of Governance tokens before sufficient awareness is brought to the project. Starting at a 1:1 ratio while providing emissions to a small pool would make the mint ratio exponential too quickly.
(2) This helps with (3), it also begins to inflate the multiplier inherent in the mint ratio.
(4) Pools that offset emissions are most needed for the Liquid Bridge. Multiple pools on multiple exchanges will also keep arbitrageurs busy. We have taken advantage of the latest Defi innovation (Velodrome, a Solidly fork) to be transformed into a sustainable project to offset our earliest emissions and create awareness for the project. Our pairings on VELO indicate the strategies:
OpenX-VELO (Medium of Exchange) xOpenX-OpenX (Liquid Bridge) xOpenX-WBTC (Store of Value)
Assuming no startup capital, it is best to err on the side of (8) offsetting >100% of early emissions. The niche found in the market is of little consequence to pairing, incentivizing, and compounding the resulting value described here, but a total collapse in liquidity is almost impossible to remedy.