TVL exceeding $43 million, how can the Polygon ecosystem’s ve (3,3) trading platform Pearl become the preferred RWA DEX?
How can Polygon's Pearl (3,3) trading platform become the top RWA DEX despite TVL being over $43 million?
The lack of a ve (3,3) exchange in the Polygon ecosystem is a problem that needs to be addressed, and the emergence of Pearl fills this gap. Pearl aims to become the preferred DEX for emerging RWA in DeFi, and ensures efficient use of holding and locking governance tokens, which can help maintain token prices and liquidity. Cryptocurrency researcher HAYLΞS.eth has analyzed and summarized Pearl’s operational mechanism, token economics, and competitive advantages.
Through PearI, users can self-optimize AMM by releasing tokens to LPs with the most votes. LPs on the DEX incentivize liquidity providers to get votes. Pearl has partnered with Tangible to use their stablecoin USDR and allow for bribes from the Solidly model to be obtained from USDR. The native PEARL token is used to reward liquidity providers and get the best trading conditions, while vePEARL can vote for which LPs can provide on Pearl DEX.
PearI operates as follows: 1) Voters obtain USDR through automatic bribes; 2) More rewards stimulate more demand for Pearl; 3) Pearl token price increases; 4) Increase the value of Pearl release; 5) Obtain released tokens by increasing TVL; 6) The automatic bribery of USDR increases with the increase of TVL. The sustainability of PearI’s ve (3,3) model mainly comes from incentivizing LPs with unlocked governance tokens, distributing transaction fees to ve token holders, and allowing the protocol to release unequal distributions to the pool and letting protocol bribe lockup token holders to vote.
Reference: https://twitter.com/Haylesdefi/status/1676249061475713026
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