Looking ahead
To our community,
Congratulations to everyone on a successful DEX and $PILLS launch!
It has been 9 days since launch and we are averaging around $2.5mm volume and $3750 in DEX revenue daily! We believe in a model that allows for the lowest transaction fees with the highest yield for users, which is why our swap fee is 50% cheaper than traditional swaps. Meanwhile, we have distributed over $1mm in revenue share to our holders via Neo Pools!
Additionally, our DEX has been listed on Matcha, DeBank, and will soon be listed on Zapper! CoinGecko’s listing of our DEX and $PILLS is still pending, after which Matcha, DeBank, and Zapper will be able to list $PILLS also.
We’ve made extraordinary progress in such a short amount of time!
Looking ahead, our primary focus is on increasing liquidity within Morpheus Swap.
At the moment, the 2% deposit fee appears to be a barrier to entry for liquidity providers. It is important to note the difference in our implementation of this fee compared to other protocols which commonly use deposit fees. In our model, because we revenue share at such a high percentage, the majority of deposit fees are funding Neo Pools and Treasury. All revenue flows through our allocation model. Deposit fees help increase revenue share (which increases FARM+NEO APY), support Treasury, and act as a barrier against “farm-and-dump” users.
We want to encourage a community that provides liquidity, earns $MORPH, mints $PILLS, earns revenue share in other tokens via our Neo Pools, then uses those tokens to provide liquidity to the DEX. This flywheel transfers wealth from a typical “treasury” to each community member, by allowing them to build LP positions in a variety of tokens and to continue being rewarded for that in our governance token, and in other tokens.
With sustainability in mind, Treasury’s goal is to provide protocol-owned liquidity for $PILLS-$MIM, so that we no longer have to use emissions as rewards to rent native LP liquidity. By doing this, Morpheus Swap would be able to redirect the current emissions to non-native LPs, increasing their APRs and building deeper liquidity.
Taking all of this into consideration, the following changes will be made:
- All farm deposit fees will be reduced to 1% in 12 hours.
- All single stake pools will be delisted on Monday, November 22nd.
- The 14.97% emissions allocation from pools will be redirected: 10% to Treasury and 4.97% to $PILLS-$MIM LP
- Neo Pools allocation will be temporarily reduced to 40% revenue share. The 20% difference will be redirected to Treasury to support protocol owned liquidity. Once sufficient liquidity is established (~3mm), the 20% will be redirected back to Neo Pools.
We believe these changes will foster deeper liquidity for our DEX and strengthen our foundation, while still providing high rewards to our users!
If you have any questions, please join us for our AMA on Monday, November 22nd at 20:00 UTC in our Discord.
As always, a huge shout out to our community and community moderators for your unparalleled support!
— Morpheus Swap team
