Telegram: https://t.me/beeswaxxdai
Site: https://beeswaxxdai.org/
Twitter: https://twitter.com/beeswaxxdai
While the future remains bright for xDAI, it is very much middleware that if not adopted will meet its fate, becoming underutilized and eventually deprecated. As extreme as gas fees being as expensive as the value transferred in tandem with long pending transactions and numerous other pain points xDAI is suited to solve, adoption of xDAI has not grown in proportion with the mainnet misery. The emergence of Honeyswap providing users with virtually instant transactions under a penny has made the fork of the popular decentralized exchange Uniswap an embodiment of how the Ethereum network can run utilizing xDAI’s sidechain. With Honeyswap carrying the torch for xDAI, it’s mortality within merely the next year will remain threatened by lack of adoption as other scaling solutions are already in line with large backings such as ETH 2.0, UniswapV3+, Matic Network and others.
So what is holding Honeyswap back? Liquidity! Highlighted by influencers such as Chico Crypto, liquidity remains the barrier to entry for potential Honeyswap users. Total liquidity on the exchange remains under $3 million for all pairs combined. This includes ETH, WBTC, LINK and other major cryptocurrencies. Large volume buyers are dissuaded from Honeyswap as slippage, price and other concerns come into play such as when market conditions occur and low liquidity can undo any growing use of Honeyswap. The Beeswax ($WAX) project plans to support this effort to attract more users to Honeyswap by means of facilitating liquidity and rewarding such providers.
Beeswax($WAX) aims to grow liquidity by rewarding liquidity providers to keep liquidity on Honeyswap furthering the adoption of the platform. WAX is able to be farmed by liquidity providers in a way that keeps liquidity within the pair on the platform. For example, the initial pairing of WAX & HNY will enable HNY liquidity providers for the pair to generate WAX as rewards from any selling transactions. This keeps a percentage of HNY not circulating helping raise the price of WAX while a percentage of any sells farm more WAX for liquidity providers without inflating the supply. The tokenomics of WAX are complimentary to Honeyswap not only in terms of liquidity but are also aligned with the benefits Honeyswap inherits from xDAI chain. Low transaction fees create less friction for trading in which more transactions can provide more rewards for those providing liquidity. The potential for arbitrage is also present as HNY or WAX may be available in another pairing for a profitable price further increasing the APY for liquidity providers from those transactions. Any initiative such as Beeswax helping push Honeyswap to the next level may speed up the process of other factors for adoption not fully in our control such as Metamask’s support for xDAI chain to become a default option for users. As the lack thereof is already creating difficulty in users accessing xDAI chain, Beeswax may be the push Honeyswap and xDAI need.
Telegram: https://t.me/beeswaxxdai
Site: https://beeswaxxdai.org/
Twitter: https://twitter.com/beeswaxxdai
