SheepDex, 1st concentrated liquidity DEX on BSC, reshapes the landscape of DeFi
SheepDex, the first concentrated liquidity DEX that integrates spots and derivatives on the Binance Smart Chain (BSC), was officially launched on October 10, 2021. Although SheepDex has only been online for a short time, it has been recognized as one of the projects within the BSC ecosystem by developing multiple innovative functions and offering users a triple incentive.
The next-generation DEX
Armed with some cutting edge features that are not yet available on other DEXs in the BSC ecosystem, such as range order and multiple fee levels, SheepDex’s AMM V3 mechanism sets it apart from the competition.
On SheepDex, Liquidity Providers (LPs) can select their own desired price brackets for which they wish to provide liquidity, which leads to better depth and lower slippage for traders. He also introduced a diversified reward system with triple incentives available at the same time: yield farming, expense reimbursement for LPs, and transaction rewards for traders.
In addition, SheepDex allows LPs to provide liquidity from a single token. With multiple fee levels of 0.1%, 0.2% and 0.5%, LPs now have more flexibility and more market-making strategies.
Brilliant performance after launch
The first batch of pools supported on SheepDex include BNB / BUSD, BNB / BTC, BNB / ETH, BUSD / BTC, BUSD / ETH, ETH / BTC, BUSD / USDC, BUSD / USDT and BNB / SPC.
At the time of writing, the average fee APRs of many pools are attractive enough. For example, the APR of BNB / BUSD fees can reach 1000%.
Many LPs prefer stable coin pairs because price fluctuations are often very small and impermanence losses can be negligible. On most platforms, stable coin returns are often low and LPs have to make a trade-off between rate of return and risk.
However, SheepDex offers a high return for a low risk. On the official website, USDT / BUSD APR is currently 30.43% and USDT / BUSD APR is 29.10%. Also, it is just the APR of expense reimbursement and income from yield farming has not been included.
From the above, we can see that LPs might get better returns on SheepDex than on other protocols, and these are just average APRs. If you have better strategies, your position’s APR will be much higher.
Through real operations, SheepDex has also proven to be a more beneficial platform. Take the USDT / BUSD example. When we trade 800,000 USDT in BUSD on SheepDex the slippage is only 0.17% and the fee is 1,600 USDT. If we also trade the same amount on PancakSwap, the slippage is 0.57% and the fee is 2,000 USDT.
SheepDex has much lower slip and lower fees than PancakeSwap. However, USDT / BUSD’s TVL on PancakeSwap is 270 million, while USDT / BUSD’s TVL on SheepDex is 2.34 million. This proves that the concentrated liquidity provided by SheepDex has unparalleled advantages.
In addition, SheepDex also offers transaction rewards, which makes the transaction more profitable.
All these innovations give SheepDex great vitality. This can not only change the direction of DEX development, but can also change the landscape of DeFi.
SheepDex is the first concentrated liquidity DEX, which integrates spot and derivatives trading into the Binance Smart Chain (BSC) ecosystem. It helps liquidity providers (LPs) and traders to maximize capital efficiency and profits by introducing several innovative features that are not yet available on other DEXs in the BSC ecosystem, such as concentrated liquidity, multiple fee levels, range orders and triple incentives.
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