DeFi development for Monero

Road map:

Stage1. To build a privacy focused DEX (Nov 2019 - Feb 2020 - done)
Stage2. Integrate BTC, XMR, USDT through bridges (Feb - Jun - first phase is done)
Stage3. Maintain liquidity pools for BTC & XMR coins (Jul - Aug - in progress)
Stage4. Cross pool functionality to allow XMR <> BTC, XMR <> USDT, XMR <> ETH trades (Aug 2020)

Stage 1 & 2 - Incognito pDEX

Privacy focused, blockchain agnostic, decentralized exchange based on AMM algorithms.
All trades and traders benefit from complete confidentiality: no KYC, no records of buyers, sellers or transaction amounts.

Early this year we tested out Interest for confidential BTC <> XMR trading and got interest from users.

More about Incognito DEX

Stage 3 - Maintain liquidity for XMR - where we need help.

At this moment the liquidity pool for BTC ≈ $400k, liquidity pool for XMR ≈ $30k. The same time XMR is the only coin whose trading volume is 3X higher than the liquidity pool.

Goal: Increase XMR liquidity and reach BTC level ≈ $400k
Tools: Incognito pool

What is Incognito pool?

Basically a pool is a mix of staking and farming mechanisms. It allows users to stake XMR and get farming rewards in real time.

The collected XMR will be matched with other coins and added to the liquidity pools

Here is how it looks from a user perspective.

Artboard

Here are some highlights:

  • Users hold private keys
  • Rewards compound every 15 minutes.
  • Users can add/withdraw coins at any time
  • No KYC, no registration. Balance statement remains Incognito.
  • Farming reward on XMR ≈ 9% APY
  • Rewards paid in PRV in real time, can be withdrawn and swapped any time.

FAQ:

What is PRV? How to sell PRV.

PRV is a native coin of Incognito Network. It is tradable on the Incognito DEX with liquidity of ~$3M for BTC, USDT, USTC pairs.

Detailed instruction how to sell PRV.

Where did you get tokens for reward distribution?

We designed a program to incentivise liquidity providers to keep funds on Incognito DEX. The program is designed for 24 month with token allocation of ≈ 1.7M PRV. Coins come from the DAO. DAO get’s funds from block reward.

Incognito Pool farming allocation by months:

image
More about Incognito tokenomic here.

What if users sold all XMR from the pool?

There is no way to do this. DEX works via Auto Market Making algorithm (AMM) and the price is calculated according to the current amount of tokens in the pool. If someone decides to buy all XMR from the pool, the price will be unreasonably high and the user wouldn’t be able to do that.

Check how the exchange rate is determined.

Also arbitrage traders help prices offered by the AMM match the external markets prices.

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