SheepDex Overview
SheepDex is the first DEX on the Binance Smart Chain (BSC) to offer concentrated liquidity. It was launched on October 10, 2021. Since its launch SheepDex has been providing efficient and superior services for liquidity concentration with further stability and security.
In contrast to traditional AMMs, where liquidity is evenly distributed from zero to infinity, SheepDex allows users to provide liquidity within a specific price range and concentrates liquidity around the current price, improving their capital efficiency by hundreds of times. On SheepDex liquidity providers (LPs) can earn more from trading fees and get higher rewards from yield farming. Meanwhile, users are able to reduce trading slippage and make more profit because transaction rewards are also offered to them.
SheepDex has gained worldwide recognition for its excellent performance and technical stability. Professional institutions such as 1Inch, the mobile aggregator, WOO Network (dYdX’s largest market maker) and Harmony One are also very positive about SheepDex and have been working closely with SheepDex in market-making. The SheepDex ecosystem will continue to see more high-quality institutions and influencers from around the world, working together to increase the liquidity of BSC.
New Brand Design
SheepDex has teamed up with a graphic design team to redesign the new SheepDex logo, which is an encrypted sheep symbolizing fearlessness and infinity, and the logo consists of three variants of different sizes:
Fearlessness: the road to success never lies through flinch or compromise, as SheepDex has done with its spectacular debut in 2021, offering an alternative to the changing market. All the stars are shining fearlessly and SheepDex has chosen to be unconventional, to innovate and to build consensus for the ecosystem.
Infinity: SheepDex is not just about the definity of DeFi. It is also evolving to provide users with more professional and safer ecological services. SheepDex opens up new opportunities and endless possibilities for the entire Defi space.
Security: With the rise of decentralized finance (DeFi), SheepDex was set up in a spirit of always respecting users. As DeFi continues to evolve, we continue to improve our security techniques to ensure the security of our user assets.
We focus on the diversity of experiences within the DeFi ecosystem, makingSheepDex a bridge for users to a more diverse ecosystem. We are willing to make bold breakthroughs and collisions, create unlimited possibilities for the whole DeFi ecosystem, create art with technology, promote the DeFi industry to the world, and bring more bridges to the world.
Brand New Security Measures in SheepDex 2.0
To further enhance security SheepDex will enable its multi-signature (multisi) mechanism, which means that authorization of token transactions will require multiple keys from the investors, not just the team, providing enhanced security and allowing unanimous decision-making.
(1) Preventing loss of private keys. SheepDex introduces a multisig mechanism for risk diversification and prevent the loss of funds due to the loss of the private key.
(2) Preventing hacking. Multisig addresses prevent hacking because it is difficult for hackers to get access to all the keys.
(3) Preventing internal theft. A private key in the hands of a few people can lead to internal theft, but it can be difficult if it’s in the hands of many.
At the same time there will be announcements on SheepDex about token burns.
DeFi 2.0 x SheepDex 2.0 — the Disruptive Decentralized Derivatives
Yield farming has been an immensely popular activity for cryptocurrency holders since the explosion of Decentralized Finance (DeFi) in the summer of 2020. However, with the exploration, people gradually found the disadvantages of leveraging yield farming. DeFi becomes DeFi because, apart from the underlying blockchain infrastructure (such as Ethereum), the most important thing is the provision of liquidity. This is the lifeblood of DeFi. However, this incentive model may lead to excessive utilization of projects and protocols by some liquidity providers, or even accelerate the demise of projects. In this model, liquidity providers are inconsistent with the long-term interests of the protocol, resulting in slow growth in DeFi. Of course, that’s only one of the reasons. As DeFi grows, so does the market demand for decentralized derivatives, which is also a key direction for DeFi 1.0 to move to DeFi 2.0.
We’ve always said that derivatives are an important part of SheepDex because of its liquidity aggregation feature that helps to clear derivatives. In the future, we will be an on-chain clearing house for spot and derivatives trading. SheepDex will be the first of its kind in DeFi.
The derivatives are also an innovative perpetual contract developed by the team. It has addressed many problems existing in the current perpetual contract, realized more profit lock-in for opening positions, provided better liquidity and better trading guarantee mechanism, and improved guarantee liquidating positions. We are now in the final testing phase of this product, and we couldn’t be more proud of this innovation. We believe SheepDex is a practical product that will revolutionize the derivatives market.
There Will Be Token Split in SheepDex 2.0
In response to the rewards for derivatives, SPC tokens will be converted into new SPC tokens at a 10-for-1 ratio, which will make the value of SPC more ergonomic. This will not only facilitate the circulation and trading of SPC tokens, but also allow the community to become more decentralized (as token liquidity and the number of token holders will increase).
The reason for this is that a token split can make shares seem more affordable to small investors (even though the underlying value of the company has not changed). This has the practical effect of increasing liquidity in the stock.
The SheepDex 2.0 Ecosystem
(1) In the era of DeFi 2.0, no project can stand alone, especially decentralized exchanges. We can see a growing demand for high-quality projects.
Therefore, SheepDex will launch an incentive fund to develop the DeFi 2.0 ecosystem. SheepDex is the first and the only BSC-based DEX to leverage concentrated liquidity, a new mechanism for BSC. Moreover, SheepDex’s liquidity concentration is definitely in line with the DeFi trend. So we are in search for additional partners to contribute to the increase in liquidity on BSC, including but not limited to vaults, financial instruments, stablecoin products and other projects that need to address liquidity-related issues. SheepDex facilitates concentrated liquidity through an open and friendly approach, providing technical support and development funding to those projects.
(2) Candy DAO, a third-party platform, will be integrated into SheepDex’s ecosystem to drive blockchain projects. Candy DAO is an important tool that allows projects to lock their tokens and pools on SheepDex and incentivize liquidity providers with your platform tokens.
(3) To better develop the SheepDex ecosystem, we are introducing an agency program. The agents act as a liquidity manager and are approved by SheepDex governance. They will be able to get long-term returns after introducing high-quality projects and being included in the platform whitelist.
The roadmap and development plan of SheepDex 2.0 opens up new opportunities for DeFi 2.0. In the face of these risks and opportunities, there are people running away, there are people doing what they have to do, and SheepDex chose to move forward and embrace the trend. DeFi 2.0 is a step out of the wilderness era of DeFi 1.0. And SheepDex is taking the edge off the cold by connecting people with others, providing a more forward-looking drive for liquidity provision and opening the door to a new world of financial ecosystem.
