Uniswap was a gamechanger for swapping tokens on Ethereum. From that moment on you didn’t need Binance, Coinbase or Kraken anymore. You could hold your own keys and swap trustlessly.
The only problem is that the Ethereum gasfees keep rising and rising. Onboarding new users who have $200 to spend is hard at the moment. That’s why Richard Heart and his team decided to create Pulsechain. A fork of Ethereum which copies system state and is gonna beat Eth 2.0 to market with all the Eth 2.0 improvements and more!
The question then became:
What is Uniswap/Sushiswap/1inch gonna do?
Are they gonna create front ends for Pulsechain and become great on Pulsechain as they are on Ethereum?
Instead of waiting around to see what the existing AMM’s are going to do, Richard decided that it would be better to create our own DEX: PulseX.
What at first seemed to be a simple fork of Uniswap V2, turns out to be much more than that. With the strategy and game theory of PulseX, the chance that PulseX is going to dominate is enormous.
The game theory behind PulseX:
- Liquidity Aggregation
The PulseX bot harvests all copies of ERC-20s on the Pulsechain (PRC-20s) from all major liquidity providers (such as Uniswap) and adds them to the liquidity of PulseX. With this, PulseX will have the largest liquidity of all exchanges on the Pulsechain.
If Uniswap intended to become big on the Pulsechain, it has made it very difficult with this strategy and the chance that an exchange will become bigger than PulseX is very small.
- Buy & Burn
When you swap one token for another on PulseX, you pay a 0.29% PLS fee. With 21% of this (0.06% of the entire fee) PLSX gets bought and burned. This means that with every swap PLSX will be bought and can never be sold again.
- No inflation
There will never be more PLSX than on day one. The supply will be 170 trillion PLSX. Due to the Buy & Burn, this will decrease with each transaction.
- LP Yield
Liquidity Providers earn 0.22% in trading fees
The sacrifice phase has started. It is very similar to the Pulsechain sacrifice phase. From now until January 10th 2022 you’ll receive 10,000 Sacrifice Points (10,000 PLSX at launch) per dollar.
After January 10th the rate per 10,000 Sacrifice Points gets 5% more expensive a day.
Since it’s about the dollar amount at the exact moment of sacrifice (30min TWAP), you want to offer your token of choice at the highest possible price. With the Pulsechain sacrifice, this was during the first few days when you sacrificed HEX as the price pumped hard at first and then dropped. There is a chance that the best time to invest this time will again be in the first couple of days.
However, if the price of HEX (or your token of choice) keeps pumping it may be better to wait with sacrificing until a later date. The Sacrifice Phase will end on February 25th.
Besides the rate increase there is also a Volume Bonus. The more you sac, the bigger your bonus. The maximum bonus is 2.5x your sacrifice amount, but for most of us this isn’t attainable. During the Pulsechain sac you got a 1.2x volume bonus when you sacrificed more than $20,000. Even still, it’s best to sacrifice from one address. The volume bonus ends on February 21th. Until that time you can sac as often as you want as long as is from the same address if you want to optimize your Volume Bonus.
How do I sacrifice?
Since ETH and ERC-20s have mainly been sacrificed, I focus this step-by-step plan on those tokens.
- 1) Have control over your own private keys
Make sure you have ETH/ERC-20 (HEX, LINK, AAVE, DAI, USDT, USDC, etc.) in a wallet of which you own the private keys. You can not sacrifice from an exchange. I recommend the Metamask or Stakerapp wallet. Make sure you have the real Metamask. This is https://metamask.io/.
Double and triple check this.
- 2) Put the crypto of your choice in your wallet
Make sure you have the crypto you want to sacrifice in your own wallet. If you are not going to sacrifice ETH, it is still important to have some ETH in your wallet to pay the gasfee.
- 3) Sacrifice via your wallet
The sacrifice address is the same for everyone who offers ETH/ERC-20:
Double check this on PulseX.info and on Richard Heart’s twitter.
1. Open Metamask.
2. Click send.
3. Paste the sacrifice address.
4. Choose the crypto you are going to sacrifice at Asset
5. Choose an amount (make sure you have enough ETH for the gas fee).
6. Click Next, check everything and then click Confirm.
Do you want to sacrifice through Stakerapp?
It’s exactly the same. You send your token of choice to the sacrifice address. The only difference is that you don’t need ETH in your wallet since you can pay the gasfees in HEX or USDC as well.
You will receive a notification within seconds/minutes that your transaction has been confirmed or that it has failed. If it failed, you must try again. What often helps is to have no digits after the decimal point for all tokens except ETH. Change 6000.325236 HEX to 6000 HEX. The reason could also be that you do not have enough ETH in your wallet to pay the gas fee.
You are ready for PulseX.
Check your rank on PulseXlead.com.
Now you have to wait for the network to come online, after which you will receive your PLSX tokens at the address from which you sacrificed. The best guess we have at this moment is March 2022.
What can we expect from PulseX?
As PulseX becomes an enhanced version of Uniswap on Pulsechain, we can look at UNI’s performance for our predictions. From low to high, UNI rose 2462% in 179 days.