A Brief Analysis of Aegis's Operating Mechanism and Competitive Advantages
Aegis is a native DEX built on Arbitrum, constructed using the Uni v2 AMM mechanism.Author: Aegis
What is AEGIS?
Aegis is a native DEX built on Arbitrum, utilizing the Uni v2 AMM mechanism. The protocol features xAEG and Launchpad functionalities, with xAEG being exchanged at a 1:1 ratio with AEG. Holding xAEG provides benefits such as sharing trading fees, Launchpad benefits, and boosters for more rewards of $AEG and $xAEG. Aegis Launchpad will focus on on-chain blue-chip projects with real yields, emphasizing LSD and derivative projects. It ensures that launched projects align with Aegis's future development path and will establish deep partnerships with collaborators, making each launch event a catalyst for the development of the Aegis ecosystem.
What advantages does AEGIS have on Arbitrum?
Compared to other DEX projects on Arbitrum, such as zyberswap, the economic model of the Aegis protocol is more sustainable in the long term and has the potential for deflation. The success of Camelot demonstrates the importance of having a healthy economic model for a DEX; the ecosystem cannot be destroyed by selling pressure before your value is fully realized.
In contrast to Camelot, Aegis has its unique features:
AMM Mechanism
The protocol will provide liquidity through the CRV V2 AMM mechanism, allowing Aegis to flexibly concentrate liquidity through price fluctuations, maximizing the utilization of liquidity funds. It offers low-slippage trading for stablecoin pairs like USDC-DAI and USDT-USDC.
Token Mechanism
Aegis V2 will introduce voting and bribery mechanisms. It will allow xAEG holders to profit from projects that need to increase Aegis's emission. This healthier emission system significantly enhances the rights of xAEG holders, leading to a more sustainable development of the Aegis V2 protocol.
Farming Mechanism
Aegis Gauge:
Aegis Gauge is an incentive mechanism designed to encourage liquidity providers to increase their participation and support for the protocol.
Benefits:
More Rewards: Aegis Gauge pays rewards to liquidity providers, allowing them to earn higher returns.
Better Control: Aegis Gauge allows liquidity providers to allocate their assets across different pools, giving them better control over the flow and risk of their assets.
Higher Flexibility: Aegis Gauge offers greater flexibility, as liquidity providers can transfer their assets between pools at any time.
Better Diversification: Aegis Gauge can reduce risk by spreading assets across multiple pools. This helps prevent significant losses due to price fluctuations in any single pool.
Better Governance: Aegis Gauge can also be used for voting, allowing liquidity providers to participate in the governance and development of the protocol.
In summary, Aegis V2 will use the Crv V2 AMM model, introduce Gauges and bribes to initiate the Aegis war, and focus on real yield derivatives and LSD tracks, targeting niche markets. Currently, there are no projects on Arbitrum comparable to Curve, and the main development focuses on LSD and derivatives. If successful, it has the potential to become a dominant player.
How to participate in AEGIS?
Aegis Launchpad Details:
Sale Price: $3
Hard Cap: $3,796,460.86
Total Token Supply: 1,000,000
Public Sale Total: 150,000 (15% of total supply)
Start Time: March 22, 20:00 Beijing Time
End Time: March 28, 22:00 Beijing Time
The initial FDV is $3,000,000.00, with the sale tokens consisting of 10% AEG and 5% xAEG, resulting in a circulating market cap of $540,000 (including 3% for marketing and airdrop tokens).
Any unsold tokens from this public sale will be burned.
The hard cap directly adopts the fundraising figure from Camelot, which is quite interesting. Compared to what the protocol aims to achieve and the current fundraising progress, there is significant room for growth. If you are optimistic about the explosive growth of the Arbitrum native ecosystem, you may want to pay attention to Aegis.
