Taking a comprehensive look at the PoseiSwap economic system, how does it continue to capture value from this grand narrative?
Nautilus Chain stands as the industry’s pioneering modular Layer3 architecture public chain, empowering developers to craft customized sovereign, EVM-compatible application chains in a modular fashion with the robust support of Celestia + Eclipse. Multiple application chains can execute concurrently, presenting an innovative Layer3 architecture. Nautilus Chain not only builds upon Ethereum founder Vitalik Buterin’s Layer3 vision but also serves as an early embodiment of Layer0 infrastructure technologies, namely Celestia and Eclipse. Presently, Nautilus Chain has successfully concluded its testing phase and initiated the early mainnet version, tailored towards developers.
PoseiSwap, situated as the premier DEX on Nautilus Chain, stands as one of the earliest adopters of its technical solutions. Leveraging Nautilus Chain’s strengths, PoseiSwap gains distinctive advantages. Modular development tools are supplied by Nautilus Chain, thus facilitating the establishment of a fresh application layer through the utilization of zk-Rollup technology. Within this framework, PoseiSwap has erected a novel order book system and privacy transaction features, all built upon zk-Rollup. Furthermore, Nautilus Chain’s modular tools have been instrumental in the creation of a new module by PoseiSwap, aligning with OFAC compliance frameworks. Rigorous compliance audits have validated this module, laying a robust foundation for PoseiSwap to facilitate the trading of a wider array of assets.
Supported by a brand-new technological framework, PoseiSwap possesses a grand narrative direction and capability that aligns harmoniously with its own economic system.
A look at PoseiSwap’s economic modelling
PoseiSwap integrates the POSE token as its governing instrument within its autonomous ecosystem. It has implemented a governance framework rooted in the ve (3.3) model, resembling Curve’s setup. Users must stake their POSE tokens and select a staking duration to receive sPOSE tokens (non-transferable) tailored for voting, engaging in governance matters, and accruing long-term advantages. Each sPOSE token corresponds to a staking period ranging from 30 minutes to 4 years. Extended staking periods confer greater weight to voting and governance through sPOSE tokens (upon maturity, staked tokens can be redeemed).
PoseiSwap actively fosters user participation in staking and governance via the aforementioned mechanism, thereby nurturing the ecosystem’s enduring progress. In the foreseeable future, PoseiSwap will introduce profit pools founded on sPOSE tokens (with POSE tokens as reward sources), bestowing considerable benefits upon users aligned with their sPOSE holdings. As PoseiSwap evolves over time, sPOSE holders can anticipate broader perks, including augmented profit expectations and heightened engagement in RWA structures.
Traditional token governance frameworks often fall prey to manipulation by whale users, leading to an ecosystem development bias in favour of major capital holders. PoseiSwap, through its inventive governance model, further curtails governance control wielded by substantial capital users and motivates active user involvement, encouraging long-term staking via benefits tied to the staking duration. Nonetheless, it’s worth noting that PoseiSwap is still in its nascent stages, with the governance system poised for launch in the imminent future.
Users can also directly engage in POSE token staking to amass staking rewards. In the preliminary phase, aiming to attract community engagement and bolster ecosystem liquidity, the annual percentage yield (APR) for single-asset POSE staking can soar as high as 40% to 100%. Additionally, stakers garner daily POSE rewards with a daily multiplier escalating by 1% every 24 hours, capped at 130%. Staking withdrawals can be executed within just 24 hours. Furthermore, users stand to earn supplementary rewards and airdrops from syrup pools.
Presently, the mean APR for staking POSE tokens in the single-asset staking pool hovers at approximately 46.37% (with a minimum of 40%), substantially outperforming most DeFi yield rates.
In addition to single-asset staking, providing liquidity in the form of LP (liquidity provider) for POSE assets will also allow users to earn attractive rewards. It is reported that PoseiSwap allocates 45% of the token’s total supply to staking rewards, Genesis NFT mining, and liquidity providers (LPs), with LP mining having the highest proportion. Therefore, POSE holders who contribute liquidity as LPs can also earn substantial rewards.
Indeed, PoseiSwap presents an incentivized and vibrant new ecosystem that encourages greater user participation and contribution to the long-term development of the ecosystem. As more users join and actively engage, the ecosystem can benefit from diverse perspectives and resources, fostering sustainable growth. With its governance token, POSE, becoming a widely recognized asset within the ecosystem, it establishes a solid foundation for capturing long-term value and fostering a thriving community.
How does POSE continuously capture value from grand narratives?
PoseiSwap is a DEX with a grand narrative direction, one of which is privacy trading. PoseiSwap is exploring the direction of privacy based on zero-knowledge proofs by building a Zk-Rollup-based order book, which will further enhance the privacy trading experience for users. With the collaboration of the OFAC compliance module, PoseiSwap is expected to make further breakthroughs in the Web2 domain.
RWA is a promising direction that introduces traditional world assets such as stocks, futures, and funds into the PoseiSwap ecosystem, and PoseiSwap is currently laying out in this direction. Through a customized RWA framework based on the Nautilus Chain, PoseiSwap is expected to provide a new way for real-world assets to enter the blockchain world and create a modular, scalable, and liquidity-supported RWA solution. At the same time, it will distribute previously highly centralized activities, such as issuance and regulatory compliance (in collaboration with the OFAC module), on a private and secure network of independent participants.
PoseiSwap, as an early attempt by Nautilus Chain to develop in the RWA field, will accumulate early experience from it. Nautilus Chain itself also sees RWA as one of the long-term development directions of the ecosystem, and PoseiSwap will continue to contribute to the Nautilus Chain ecosystem through its early RWA layout.
In this process, POSE assets will play a crucial role, such as serving as credit assets in the RWA framework, and acting as symbols of credit in various processes such as RWA asset generation, trading, and redemption. This will help POSE assets continuously capture value from traditional assets, accumulate value, and possess a strong value moat.
RWA is just one of the directions in which PoseiSwap is laying out in the Web2 domain. Other directions include flow payments and salary disbursements backed by the Zebec system, all of which will also assign important roles to POSE. Therefore, we have reason to believe that POSE will continue to capture value deeply from PoseiSwap’s grand narrative.
