DXT- The Liquidity Token
The DXT token is our liquidity token that is designed to incentivize users to provide liquidity to the network. DXT token holders will receive a portion of the platform generated fee, with 80% of the fee being distributed to DXT holders. This provides a strong incentive for holders to provide liquidity and participate in the network.
DXT tokens will mainly be distributed to Liquidity Providers (LPs) who participate in pools and provide liquidity. Tokens will be minted on demand based on the liquidity objective and the demand for certain token pairs. This ensures that there is always sufficient liquidity on the network, and LPs are incentivized to provide liquidity to the network.
When liquidity is infused into the network, DXT tokens will be provided based on specific criteria related to pool demand and supply. The distribution of tokens will be based on two primary factors: the demand for certain token pairs, which is referred to as the liquidity objective, and the demand at a certain time period, which is referred to as the provisioning objective.
The liquidity objective is based on the demand for specific token pairs and is designed to ensure that there is always sufficient liquidity for users to trade. This ensures that users have a positive experience on the platform and increases their likelihood of returning in the future.
The provisioning objective is based on the demand at a certain time period (t-1) and is designed to ensure that there is sufficient liquidity for LPs to provide liquidity to the network. More DXT tokens will be provided for the same amount of liquidity at a particular time to provision liquidity. This approach ensures that the distribution of tokens is efficient and aligned with the network's liquidity objectives, while also incentivizing LPs to provide liquidity to the network.
DXT tokens will be subject to a lockup and vesting period of one year. This ensures that token holders remain committed to the network's success and provides a stable foundation for liquidity provision. This lockup and vesting period also aligns with the network's long-term goals and objectives.