PrivacySwap’s DEX Update | 15 Feb
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February 15, 2022- Telegram Announcement: It has been about a week since we posted an update regarding our decision to go with a dual option migration from PRV2 + PRVG to PYDEX. We understand that there are some concerns as well as suggestions, and we have been compiling these thoughts as we prepare to roll out PYDEX. On the technical front, we are nearing completion and very close to launch. Just a few things left to iron out and we will be setting dates.
Essentially, we are left with:
- Gathering all data from the blockchain pertaining to the pending rewards and stakes for the PRVG locked pool that earns PRV2.
- Developing and confirming our contracts for our dual option swaps. This was a fairly new development hence it was written from scratch.
- Finalizing and stress testing our PrivacyCard platforms since we have a bit more time to do so now.
- Completing remaining UI changes.
- Planning of dates.
We are very confident this time that we will definitely be able to accomplish all of the above and launch before we close out February.
With that out of the way, let me address some comments and ideas that we have seen over the past week. I think that there is a divide between people who are for option 1 and for option 2. This is understandable. But we would like to reiterate that both options will be provided for everyone to choose which suits them best. Of course, we want to ensure that we can give as full a picture as possible. Thus, we will be releasing our finalized tokenomics by the end of this week. But before that, let us first rationalize both options from the perspective of us, the builders.
Rationalizing Option 1.
We believe that we made a bit of a stretch when we introduced the PRV2 + PRVG structure. Essentially we doubled the market cap of our whole ecosystem without the injection of additional funds from new entrants. Matters were made worse when very shortly after our swaps we saw a huge dump which brought prices to levels unintended and unforeseen.
With that being said, this taught us a lesson that inflating the market cap in such a manner would be detrimental in the long run, as it may become unsustainable. With this in mind, we understand too, that there are users who are currently bleeding. We recognize that we as the team, should prevent such artificial inflation to occur yet again — and the discrepancy between the pegged and actual price today would 100% lead to such inflation even with a sales tax implemented.
And some might suggest that we implement a high sales tax. This would solve the issue. But it would also create another issue — PYDEX would be 100% unfriendly to new entrants. Who would like to buy late into a new ecosystem to immediately face a high sales tax? Might as well just stay out, right? So we take it as doing a dollar to dollar migration as a way of starting anew. It would be an uphill battle for sure. But it would be an uphill battle that gives us the best fighting chance to rebuild PrivacySwap’s token economy from a bigger picture perspective.
Rationalizing Option 2.
When we pegged the price, we initially wanted to launch very close to then. Launching close to the announcement of the peg would deem the issue of a price discrepancy very manageable. Unfortunately, due to some unforeseen circumstances and the utter complexity of PYDEX as a whole and what we are trying to build, we faced major delays.
For that, we recognize that things could have been done better. But we did not want to risk causing PYDEX to flop right out the gate and go back to square one. With that said, we still understand that people have been trading and/or holding their positions with the pegged price in mind. But then again, we also understand that a lot of our users are true supporters who have been with us through thick and thin.
We still want to offer the pegged price, but we also want to ensure that there is a vesting period in order to ensure that PrivacySwap has a chance to grow its userbase while ensuring that existing holders will be able to execute their strategies in a fair manner. With that said, we hear you, and we MAY reconsider the vesting schedule.
Please stay tuned on this as we discuss this internally. At the same time, we are unfortunately unable to have your vested tokens earn you any yield as the vested tokens will NOT be able to be staked anywhere for their vesting duration. This is a technical difficulty, and not so much us not wanting to do it.
We hope that you are able to understand that from our perspective, we care not for anything BUT the longevity of PrivacySwap as a whole. The reason for this is that we have spent a lot of time and effort building this. We started not knowing much, to learning A LOT through this one year. Do also take into account that there aren’t really many farms that started around our time that still exists today and still build — we are serious about delivering the vision that we set out to build.
That being said, I think that the next one sentence would clear up a lot of confusion.
EVERYONE will be given the option to choose if they wish to go with option 1 or option 2. It is entirely up to you at the point of swap.
Bristly Whiskers, you make a LOT of very good suggestions and you have been a class community member since we can remember. PrivacySwap appreciates your comments and your suggestions. We will address one portion first. PRVG and PRV2 cannot be used as a staking requirement as if we were to do that, then these tokens would not be able to be migrated.
We are leaving PRV2 and PRVG behind, thus its utility is no longer prevalent. As mentioned above, we are unable to pre-mint the PYDEX tokens and pre-farm them for you as that would require us to take them out of the vesting contract, which means they will no longer be locked.
The technicalities of the vesting make it utterly cumbersome and unwise as it leaves a LOT of room for exploits and things to go wrong. With regards to the remaining 10%, you may refer to the above. We are more than happy to take some time off to have a session of discourse with the community on more suggestions.
With our limited time, we will definitely try to carve some out to connect with the community. But in the event that we cannot, please feel free to continue submitting your suggestions — we are looking at them and considering each and every one of them.
We think we have written quite a bit to digest here. It is late(night). That being said, please know that we will be revisiting a lot of these suggestions daily to try and improve our migration and our token economy. The market is bearish, but we are not leaving — we are building in preparation for what is to come next.
Let us catch up again soon, everyone. For now, I will leave you with this. By this week’s end, we will release our finalized tokenomics and update again on our technical progress.
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