Lydia Finance Intro 🦁
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Introduction
Lydia Finance is a decentralized exchange (DEX) running on Avalanche. The exchange is an automated market maker (“AMM”) that allows two tokens to be exchanged on the Avalanche Network. On top of that, you can earn LYD tokens with farming, staking, our and earn even more tokens with Electrum pools.
The ability to swap many different cryptocurrencies while maintaining custody of your coins is an improvement in safety when compared to using centralized exchanges. Centralized exchanges (CEX) require the user to trust another entity with their funds and as we know it doesn’t always work out well. Sometimes they also won’t let you withdrawal or deposit funds in a timely manner which most users have experienced and it can be extremely frustrating. An increasing number of users are finding out how easy and convenient it is to use DEX’s over CEX’s.
How can Lydia provide liquidity for users? This is where farming comes in, we provide the user with an incentive to provide liquidity for the DEX by staking LP tokens and earning a reward in LYD. So instead of centralized market makers we allow the users to provide liquidity to the DEX allowing for a more decentralized platform. This also provides utility to the LYD token.
What other utility does the LYD token have? We also offer high APY staking pools which do not have the risk of impermanent loss (IL). Another feature we have on our platform is the lottery. This will allow users to use the LYD token to participate in a lottery which gives the user multiple chances to win LYD tokens. Over time will add more utility for the token as well.
Tokenomics
Total Supply ≈540.000.000 LYD
Farmers --> 61% -- 329.400.000 LYD
LYD Holders --> 21% -- 113.400.000 LYD
LYD Airdrop --> 3% -- 16.200.000 LYD
LYD Developer & Team --> 15% -- 81.000.000 LYD
Ticker: LYD Contract Address: 0x4C9B4E1AC6F24CdE3660D5E4Ef1eBF77C710C084 Chain: Avalanche C-Chain (ERC-20) Emission rate: 10 LYD/second
Airdrops
Initially, we are minting 16,200,000 LYD to our Airdrop contract to giveaway it to the future Lydians with several campaigns. Once the Airdrop participation period ends, we will retrieve the data participants submitted, verify & clean out spam entries, remove duplicate entries and send LYD tokens to the winners wallet addresses. Any remaining tokens in the airdrop contract that don’t get used will be burned. We announced our first Airdrop here on April 13th, 2021.
Inflation
In most farming platforms there is an issue with inflation, especially if the yields are very high. When the inflation is high you will see the value of your tokens decrease over time. We counteract this by adding some deflationary mechanisms to our platform. The first is the lottery, 25% of the total pot will be burned from every lottery that take place. Then there is our Electrum Pools, they have an 8.55% performance fee which will also be burned. Next we have our Maximus Farms where the fees will also be burned. Maximus contract will be collecting 3% of each yield harvest, which is subtracted automatically. In addition to performance fee, our LYD auto compounder will be charging %6 of LYD profit. Over time we will add more and more deflationary mechanisms to our platform to increase the burning of LYD and ultimately making it more scarce.
Avalanche not Ethereum
We decided to use Avalanche (AVAX) for a multitude of reasons.
First being that the gas fees on Ethereum (ETH) are currently very expensive acting as a barrier to entry if wanting to use a DEX built on top of it. Transaction fees on the Avalanche Network are consistently low, which means that our DEX is accessible and affordable.
The second issue is the speed of Ethereum, depending on network congestion you could be waiting several minutes for your transaction to go through. On Avalanche we are able to enjoy sub-second transaction finality allowing the user to not have to wait more than a few seconds for transactions to go through.
The third reason is scalability. Avalanche currently has the ability to process 4,500 transactions per second. Ethereum is currently only around 30 transactions per second.
The fourth reason is that we produce LYD tokens based on UNIX timestamps. No matter the block number, 10 LYD tokens are produced per second. This would not be possible on Ethereum because miners can manipulate block timestamps. The usual way of measuring time in Solidity contracts on Ethereum is to use block height. On Avalanche, timestamps are guaranteed to be accurate to within 30s of the real-time and guaranteed to be increasing. This allows us a more predictable token production and more accurate APYs.
Conclusion
Throughout the short time that Decentralized Finance (DeFi) has existed, we have seen an increased need for new Dapps that perform better than what is currently available. We have watched the total value locked in DeFi applications skyrocket. We all realize that the future of finance is decentralized and as time goes on the world will too. Lydia Finance exists to help fill the need for a fast, cheap, and scaleable DEX. But Lydia does much more than that. We are aiming to be a one stop shop for all of your DeFi needs on the Avalanche network.
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