UPDATE: The sacrifice phase has started. Read the post with the most recent information here.
PulseX will become the most important decentralized exchange on Pulsechain. It will be a fork of Uniswap with better game theory and some other tweaks. Just like Uniswap has the UNI token, PulseX will get the PLSX token.
Pulsechain (PLS) will be a fork of Ethereum.
PulseX (PLSX) will be a fork of Uniswap.
As with HEX and Pulsechain, the game theory of PulseX has been optimized. What at first seemed to be a simple fork of Uniswap, turns out to be much more than that. 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 will start in a few days. It will be very similar to the Pulsechain sacrifice phase. The first X number of days you’ll receive 10,000 sacrifice points (which will most likely be converted to 10,000 PLSX at launch) per dollar you have sacrificed.
After this 10,000-tokens-per-$1-period, the price of sacrifice points got 5% more expensive a day during the Pulsechain sacrifice phase. With PulseX, the price per 10,000 tokens will also increase, but it is not yet clear by what percentage per day. Richard Heart has hinted that it will be less than 5%.
Since it’s about the dollar amount at the exact moment of sacrifice, 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.
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.
When the sacrifice phase is announced I will write a second post containing a complete guide to sacrificing.