Aequinox is a decentralized exchange (DEX) that was launched on Binance Smart Chain (BSC) not long ago (since this August). But it has built a series of attractive benefits for participants, such as multi-token, multi-reward pools (up to 8 tokens/rewards), self-governed crypto index portfolios, and near 0% stablecoin swap fees /slippage, etc. Let’s dig deeper into this fascinating exchange.
1. Introduction & vision
Aequinox Dex is a community-driven decentralized exchange that operates on the Binance Smart Chain. It provides multi-token and weighted pools, automated portfolio management, liquidity deepening, and oracle data price sensing. The BSC serves as the foundation upon which Aequinox Dex was constructed. It establishes bespoke crypto indexes that can consist of up to 8 tokens.
Traders can swap one token for another within the same collection held by an Aequinox Balancer Pool that contains two or more tokens. Depositing their tokens in the pools allows Liquidity Providers to be eligible for the associated swap fees.
Aequinox implements powerful features that reduce gas costs, increase the efficiency of capital, allow arbitrage with zero-token initial capital, and open the door to custom AMMs.
Aequinox has the ambition of being the predominant decentralized exchange on Binance Smart Chain. It will do this by being able to accommodate huge swaps for stablecoins and regularly traded pairs while charging very low slippage and fees.
Without the requirement for centralized or custodial holdings, the Aequinox will eventually develop into a full-suite trading platform that can facilitate all types of traders and investment profiles, from one-step investing to complex active trading. In the raodmap is a long/short platform, a portfolio management system, alerts for things like overleveraged positions or stop losses, and Aequinox announced a variety of other advanced trader utilities to be added to the DEX as the platform is improved and fine-tuned.
The ultimate goal is to make investing in decentralized cryptocurrencies possible with as little prior knowledge as possible while retaining the ability of more experienced traders to carry out particular strategies by making use of the tools that are made available directly on the Aequinox platform itself.
In the spirit of DeFi, the team has also implemented a Voting Escrow system analogous to the one used in the Curve wars (the market-driven voting between several DeFi protocols for a piece of the massive liquidity in the Curve Finance ecosystem). This system enables the community to direct rewards emissions to their chosen pools, modeled after the system used in the Curve wars.
Because of this, the rewards for yield farming on this DEX will now be determined by the community rather than by the protocol. The market will decide which pools will receive higher prizes. With this approach, the APRs across the board will automatically adjust to reflect the market’s general conditions and investors’ sentiment.
Aequinox’s Optimized Index Funds: The Best Way to save your fees
Users can gain access to broad exposure to a range of tokens by using pools with huge token counts. These pools function similarly to index funds. The fees are one area in which Aequinox diverges from the conventional understanding of what constitutes an index fund.
Instead of paying costs to have a broker rebalance the pool, the pools collect fees as they are regularly rebalanced by traders performing swaps. This saves participants from having to pay fees. In addition, pools with a high total number of tokens have the benefit of having many token pairs, resulting in increased opportunities to earn trading fees.
Weighted Pools on Aequinox are derived from an N-dimensional invariant surface, a generalization of the constant product formula that the co-founders of Ethereum Vitalik Buterin outlined.
Harmony, mutual benefit for both Liquidity Providers and Traders
The needs of Traders and Liquidity Providers can be satisfied by utilizing this approach. Liquidity Providers can receive trading fees while, at the same time, their portfolio is continually rebalanced.
Traders get access to an open, decentralized exchange that is always open, so they may trade whatever they want, whenever they want and pay only a little charge to do so.
2. Main value propositions
- The primary Balancer style DEX on BSC: Aequinox’s functionality is similar to what Balancer’s DEX does on the Ethereum network. Balancer is more complicated and is not as straightforward as Uniswap or PancakeSwap’s styles of decentralized exchange.
- Multi-token, multi-reward pools (up to 8 tokens/rewards): Aequinox supports multi-token pools with a maximum of eight tokens as well as weighted pools (instead of the traditional 50:50 ratio, users can have different ratios like 30:70 or 60:40)
- Auto-rebalancing, self-governed crypto index portfolios: Investors can create their weighted crypto index fund (for example, 20% BTC, 30% ETH, 10% BNB, and 40% USDC) if they are expert investors who would like to have a variety of cryptocurrency tokens in their portfolio. This type of fund is quite similar to an exchange-traded fund (ETF).
Because the market will automatically rebalance the portfolio through incentivized arbitrage possibilities, doing so on the Aequinox DEX will save a portfolio manager’s fees that represent a significant amount of money.
In addition, given that investors’ self-governed crypto index fund takes the shape of a multi-token APT, they will simultaneously receive liquidity mining incentives.
- Near 0% stablecoin swap fees: the swap fee is around 0.02% – the lowest on Binance Smart Chain at the time of writing. Slippage is also near 0%.
- Aequinox Dynamo: Users of Aequinox have the opportunity to vote to steer emissions into their preferred liquidity pools, which in turn boosts their APRs, thanks to the built-in locked staking system known as the Aequinox Dynamo that is included in the crypto platform.
Users can receive veAEQ by using the Aequinox Dynamo, a platform that allows them to lock their AEQ-WBNB APTs (Aequinox Pool Tokens) for up to 365 days. The longer they lock for and the greater the number of tokens they lock, the more veAEQ they will receive. veAEQ holders are entitled to:
1. Liquidity mining rewards: The first and most crucial step is participating in any liquidity pool as a liquidity provider to earn yield. When investors invest in a liquidity pool, the Aequinox platform will immediately generate the Aequinox Pool Tokens (APTs) inside the smart contract. These tokens will reflect the proportion of the pool allocated to them. Therefore, if the liquidity pool’s size increases over time due to trading fees, the value of their portion of the pool also increases.
2. Boosted AEQ Emissions: Investors can supply liquidity for the primary AEQ token pairing, denoted by the symbol AEQ-WBNB, and lock tokens for 14 days to 365 days in the Aequinox Dynamo. This constitutes an additional yield farming layer. When investors do this, they will be rewarded with veAEQ tokens. Investors who lock more APTs for extended periods will receive a greater quantity of veAEQ.
3. Voting power: The Aequinox Dynamo receives a steady allocation of seventy percent of all emissions from the AEQ. Holders of veAEQ can utilize their voting power to direct emissions to any core pool of their choosing, thereby boosting that pool. The more votes a core pool has, the more AEQ tokens it will receive from the emissions; as a result, the annual percentage yield (APY) on that pool will increase.
4. Dividends from 50% of the DEX fees: After being utilized to buy AEQ, fifty percent of the total protocol fees earned through the various channels will be dispersed among all holders of veAEQ. These awards will be accessible for weekly claiming on the Aequinox dashboard, together with any other rewards that the user may have from liquidity mining or other profitable sources on the Aequinox DEX. These rewards can be claimed with any other rewards that the user may have.
5. DAO governance rights: Anyone with veAEQ voting power can participate in the DAO governance of the protocol. The development team will keep track of community initiatives and suggestions in the spirit of decentralization. Those who are exceptionally high quality and well thought-out will be brought to a DAO vote.
By opening a ticket on our [Discord](https://discord.gg/ames-aalto-aequinox) server, you can bring proposals that are gaining traction in the community to the development team’s attention if they are gaining popularity. Random, spur-of-the-moment proposals and demands or threats based on bullying tactics will not be entertained to prevent the spread of spam. The only ideas that will be seriously considered are those that garnered at least a modicum of popular support in the community channels.
At some point in the future, a DAO fund allocation will be taken from the original mint. The community will administer this fund, and the core team will assist in supervising and setting it up.
3. Recent accolades
– Under 96 hours after its inception, Aequinox has already reached 10 million in total value locked (TVL). There are 1.4 million units of liquidity in the AEQ-BNB pair.
– The 24-hour average trading volume is from 500k to 1 million USD.
– Aequinox can facilitate stablecoin swaps worth millions of dollars with virtually no slippage or swap costs.
4. Future roadmap
– In-house NFT marketplace and NFT Staking will be built this October
– In November, construction on Advanced trader membership, including My Portfolio page upgrade, trackers, and portfolio data feed (for veAEQ holders only), will begin.
– The long/short platform will be constructed during the year’s final month.
With all the attractive benefits offered, Aequinox is heading toward becoming the preeminent decentralized exchange on Binance Smart Chain. With the distinctive advantage, including supporting huge swaps for stablecoins and pairs that are regularly traded & charging very cheap fees, and exhibiting very low slippage, the ambitions will not only be plans but will soon become a reality.
Aequinox DEX: https://www.aequinox.exchange/
Telegram Announcements: https://t.me/aalto_protocol_announcements
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