Centralized Exchanges (CEX) offer a high trading speed
and low fees. However, they often lack proper security measures and are generally against the
decentralization paradigm promoted by the Blockchain technology.
Decentralized Exchanges (DEX) were initially characterized
by very low speed and high fees, but they are recently gaining popularity due to several
interesting DeFi projects based on them. They also offer individuals the opportunity to act as
Liquidity Providers (LP): instead of paying trading fees to centralized exchanges, they are
distributed among LPs according to the amount of liquidity they offer.
We plan to list our SETS token on UNISWAP during January 2021.
UNISWAP is among the most popular decentralized exchanges nowaday. There will be mainly two roles
that you can assume owning SETS tokens while using UNISWAP:
1) Trader, who can exchange ETH for SETS or vice versa,
paying a 0.3% fee. This fee is paid to Liquidity Providers, proportionally to the amount of
liquidity they offered.
2) Liquidity Provider (LP) who provides both ETH and SETS
tokens, proportionally to the current ETH/SETS liquidity ratio. Each LP gains a portion of the 0.3%
fee paid by traders, proportionally to the share they have in the current available liquidity.
This is the classical scenario offered by UNISWAP. However, we want to incentivize people to act as
LPs, since their contribution is fundamental for the success of our SETS token. Therefore, we will
put in place a so-called GEYSER, that acts as a
decentralized, autonomous, provider of SETS tokens, that will reward LPs with additional SETS
tokens, proportionally to the amount of liquidity they
provide and to the time they offer such a service.
For additional information on UNISWAP, its opportunities and possible risks, please visit the UNISWAP - Understanding Returns page.