In recent years, the decentralized exchange (DEX) space has grown rapidly, with various protocols attempting to solve the issues associated with automated market makers (AMMs).
Addressing AMM Shortcomings
Ethervista is a new DEX protocol that seeks to address the shortcomings of the existing AMM model, particularly the problems of short-term token price speculation and inadequate incentives for liquidity providers. Ethervista introduces an approach with custom fee structures, a novel reward distribution mechanism, and additional features aimed at promoting the long-term success of blockchain projects.
Custom Fee Structure
Traditional AMMs charge a fixed fee on every swap, which is typically paid in the tokens being traded. This fee structure has often led to short-term speculation, where token creators and liquidity providers focus on quick profits rather than the long-term growth of the project. Ethervista aims to change this by implementing a custom fee structure that is paid exclusively in native ETH, according to its recently [published Whitepaper](https://x.com/ethervista/status/1829925933643386937). This approach allows for more flexible fee allocation and better aligns incentives for both creators and liquidity providers. Fees collected from trades are allocated between liquidity providers and token creators within a specific pool. Per reports, this system incentivizes participants to remain committed to the platform, as they earn rewards based on trading volume rather than short-term price action. Ethervista allocates a portion of the fees to smart contracts specified by the protocol. According to the team, these fees can support a wide range of DeFi applications, including auto-buys, staking rewards, and more.
VISTA Token: The Native Currency
Ethervista’s native currency, VISTA, has a capped supply of [1 million tokens](https://www.coingecko.com/en/coins/ethervista) and a deflationary mechanism. Each transaction on the Ethervista platform contributes to a burn event that reduces the circulating supply of VISTA. This deflationary model reportedly acts as a hedge against inflation, driving sustained growth and scarcity for VISTA tokens. The VISTA token is also tied to a delayed liquidity removal mechanism, which prevents developers from quickly withdrawing liquidity—a common issue in the crypto space known as 'rug-pulling.'
Despite its innovative approach, Ethervista has faced criticism. Some users have raised concerns about the project's structure, with critics arguing that it combines elements of deflationary coins with DEXs and pump-and-dump schemes. Additionally, the fact that the largest holders of VISTA are controlled by a single entity has raised concerns about market manipulation.
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