Learn About The Economics of KeplerSwap in One Page

Recently, decentralized trading exchange ‘KeplerSwap’ based on EOS public-chain has gone viral, with the goal of creating the DeFi 2.0 ecosystem, KeplerSwap has created a new decentralized trading platform that reveres the close connection between users and tries to break the current cold trading model of DeFi 1.0, hoping that users can establish a close horizontal and vertical connection so that all ecological participants can grow together with the platform. The expectation of the entire KeplerSwap economic system and ecosystem is built around the SDS pass. What is the design of the SDS pass? Why do we think it will be the next thousandfold coin? Let’s take a quick look at the economics of SDS passes in the easiest way.

The design of the economic of pass-throughs of SDS

The economics of pass-through of SDS revolves around one goal: to incentivize participants across the ecosystem, align the interests and goals of different players, and create maximum value through synergies among different stakeholders. The tool that can serve to align the interests of multiple parties, facilitate their cooperation, and achieve greater benefits through decentralization is the SDS pass-through. A project’s economic model should be judged by its ability to better align the interests of all parties involved, motivate more people to participate and collaborate, and promote a sustainable and healthy development of the project. So who are the ecological participants of KeplerSwap?

The ecological participants of KeplerSwap

Circle owners/service users: Circle owners are referrers of new users and service users are mainly traders

Liquidity providers: market makers, liquidity providers

Developers: refers to the core development team, community developers, project operators

Governance participants: refers to governance proposers, reviewers who participate in discussions, voters who hold tokens

There are four types of ecological participants of KeplerSwap shown above, the SDS pass-throughs are the bridges of connection, the goal of the SDS economic model is to align better the different players above so that they are motivated to participate in the KeplerSwap network and sustainably contribute to the positive development of KeplerSwap. Participating in building the project is also to provide a safeguard for their personal interests.

The SDS pass-through economic mechanism of KeplerSwap

The SDS pass-through economic mechanism of KeplerSwap is to ensure the sustainable development of the ecosystem of KeplerSwap in a way of encouraging, this is to make the participants work towards the expected direction for the whole internet on their own willingness. So what is the core interest of the entire ecosystem of participants? It is to promote the growth of the project’s trading volume/lockup, to promote the appreciation of SDS pass-throughs, and to drive the entire ecosystem to expand and grow in a healthy and sustainable direction.

Deflationary mechanism

Compared to other projects whose incentive sources usually rely on issuing new passes, such as SushiSwap’s liquidity mining, the main problem it brings is that issuing additional passes dilutes the value of tokens and damages the interests of all coin holders in the ecosystem, so this approach implies some hazards for the system’s sustainability and health development. KeplerSwap’s SDS pass design takes this into account by firstly capping the issuance of SDS passes and not increasing them indefinitely, and secondly by making them scarce as the platform grows, the total number of SDS passes will be continuously scaled down through transactions until the pass is scaled down to 21 million. Such a deflationary mechanism ensures that the number of SDS in circulation will continue to decline over time. Due to the growing volume of transactions and users on the platform, a large number of SDS passes will need to be used, and the long-term supply of SDS passes will be less than demand, leading to a continuous increase in the value of SDS, ultimately satisfying the fundamental interests of the entire ecosystem of participants.

Distribution mechanism

Currently, for most blockchain projects, the founding team and investors hold a large number of pass-throughs, and this kind of distribution mechanism leads to the interests of the whole ecology being too tilted towards the project team, which is not conducive to the ecological development of the project, while the distribution mechanism adopted by KeplerSwap is that the founding team will not reserve any SDS pass-throughs, only 10% of the passes will be used for airdrop and marketing cooperation, 10% of the passes will be used for private placement of the project, and 80% of the SDS passes will be mined. ​In addition, 97.5% of the fees generated from trading SDS will be returned to users, and 2.5% will be used for ecological construction to achieve 100% value return. This distribution mechanism greatly guarantees the fairness of the participants on the whole ecology, so that they can have more enthusiasm to build the whole ecology and achieve common prosperity.

Pass-throughs Empowerment

The SDS pass-throughs is designed with full consideration for the empowerment of the entire ecosystem. The SDS pass-throughs will be used in many scenarios such as platform governance, full ecological exchange, liquidity mining, LUCKY POOL prize opening, circle creation and voting, smart aggregation mining, getting airdrops, coin pledging and offline payment. Such a wide range of applications will increase the determination and confidence of holders and will result in fewer SDS pass-throughs in circulation on the market, thus increase the value of SDS.

KeplerSwap is the future explorer of DeFi 2.0, and such a scientific and innovative SDS pass-through design will make the entire KeplerSwap ecosystem more prosperous. The sustainability of the ecosystem will increase the value of SDS pass-throughs, which may become the brightest star of the DeFi 2.0 ecosystem in 2021!