Gotchus Alchemica Exchange (GAX)
Gotchus Alchemica Exchange
The young Gotchi crept up to the entrance of the forbidden tower. Looming in front of him was a large wooden door, full of eldritch carvings and sinister symbols.
The door creaked open, inviting him in.
What he saw spooked him.
Vials. Test Tubes. Flasks.
Each were bubbling and boiling, hissing and churning, glowing with unearthly powers.
Inside, Gotchis were busy haggling with one another.
"How much for a unit of KEK?"
"WTT FOMO for ALPHA"
This, my frens, is the Gotchus Alchemica Exchange (GAX).
The Gotchus Alchemica Exchange (GAX) is a key piece of infrastructure in the Aavegotchi protocol that will allow games built on Aavegotchi to have stable, deep liquidity for the 4 Gotchus Alchemica tokens:
It also provides a sustainable source of revenue for powering rewards of the in-game economy.
The GAX is a clone of SushiSwap V2, with the following differences:
- DAO-owned Liquidity
A key difference between the GAX and other DEXes is that the GAX is designed to fulfill a specific need within the Aavegotchi protocol – owning and incentivizing liquidity for the Gotchiverse (and other games’) economy tokens.
Each of these tokens includes a 10% “Ecosystem” Allocation owned by AavegotchiDAO that can be paired with GHST to provide a base layer of permanent protocol liquidity, owned by the community. This stable liquidity ensures a base layer of liquidity owned by AavegotchiDAO that will increase over time, without relying on mercenary liquidity from third parties.
- Low trading fees
Because the GAX is less reliant on mercenary liquidity, it has the ability to set fees significantly lower than other DEXes. Typical trading fees on Uniswap-based DEXes are 0.3%, which are hardcoded into the contract and generic for each pair.
On the GAX, each pair can have its own custom trading fee, which can be set by the creator of the pair, and updated by the contract owner.
This allows AavegotchiDAO to be strategic about which pairs it provides liquidity to, with the potential of attracting trading volume from other established DEXes.
- Trading Fees Power P2E
The final distinction between the GAX and traditional DEXes is where trading fees accrue. In a traditional DEX, trading fees accrue to liquidity providers, but in the GAX, trading fees accrue to the Player Rewards pool — a special allocation of funds earmarked for incentivizing gameplay in the Aavegotchi NFT Gaming Protocol.
This ensures that Aavegotchi has a sustainable source of player rewards income that grows together with economic activity of the network.
The primary utility of GAX Liquidity Token Reward (GLTR) is allowing players in the Gotchiverse to speed up the crafting and upgrading of their Installations by burning GLTR, allowing them to reach higher levels of the game faster. Every burned GLTR is equivalent to one block on the Polygon PoS network.
GLTR also has a secondary utility, being the main token required for Wearable Crest auctions. Guilds will also have the choice to burn GLTR to speed up the time for their next Guild Channeling.
Max supply: 1,000,000,000,000 (1 trillion)
Distribution: 100% to liquidity rewards over 30 years
Vesting schedule: 10% in first year, remainder distributed over 30 years (with halving every 4 years)
GAX LP tokens can be staked into a Master Chef contract to earn GLTR.
All GLTR spent in-game is burned from the supply (sent to burn address).
wapGHST or Quickswap/Sushiswap LP tokens could be staked to earn daily GLTR rewards at https://app.aavegotchi.com/stake-gltr.
Stakers will start accruing GLTR tokens on each Polygon block, according to their share of the pool.