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). 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.
Addressing AMM Shortcomings
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.
Custom Fee Structure
Ethervista's custom fee structure is a departure from the standard AMM model. Instead of charging a fixed percentage in tokens, Ethervista charges fees in native ETH. These fees are then distributed among 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. Fees collected from trades are allocated between liquidity providers and token creators, encouraging them to focus on the utility and longevity of their tokens.
Creator Features
Creators on Ethervista have the ability to configure various aspects of their liquidity pools, including pool fees, protocol addresses, and metadata. Additionally, creators can restrict token transfers to the Ethervista router address, effectively locking all settings permanently and preventing unauthorized changes. The platform also includes features like SuperChat, a global live chat integrated directly into the DEX.
Ethervista represents a new approach to decentralized exchanges, introducing innovative mechanisms to tackle the existing issues of AMMs. Despite some criticisms, the project offers significant improvements aimed at the long-term success of blockchain projects.
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