Other than PulseChain itself, PulseX was the most anticipated DeFi protocol of 2023.
It launched on May 12th, 2023 and did hundreds of thousands of transactions in the first few hours.
This article will deep dive into everything you need to know about the decentralized exchange.
PulseX is a decentralized exchange on PulseChain that facilitates the exchange of tokens ("PRC20s"). The platform operates similarly to Uniswap v2 on Ethereum, uses the staking model of Pancakeswap, and allows users to trade currencies from other chains via bridges.
PulseX is also the largest yield farming platform globally, as liquidity providers earn fees every time a user swaps one coin for another. Users can pair their ERC20 tokens with free PRC20 tokens to provide liquidity and earn fees, which helps to support the value of the PRC20 tokens.
To further incentivize liquidity providers, PulseX has introduced a second token, the incentive token (INC), that rewards LP token holders who deposit them in a yield farm. This new token, which has yet to be named, has decreasing inflation over time, and the PulseX DAO determines the trading pairs that receive incentives and at what rates. Only addresses with PLSX balances can vote in the DAO.
PulseX's primary objective is to provide PulseChain users with the best possible trading experience and yield farming platform while also encouraging ERC20 holders to bridge in and support the value of their free PRC20 tokens.
Decentralized exchanges (DEXs) are important for several reasons:
Cryptocurrencies have emerged as the best performing asset class in the past decade. The reason behind this is that they eliminate counterparty risks and middlemen, provide privacy, and boast better uptime than traditional banking and credit card networks. Cryptocurrencies also enable users to log in to platforms using cryptographic username and password pairs, independent of the platform.
If you hold PLS or PRC20s, you can provide them as liquidity to PulseX and earn yields on them, which can be less risky than trading and offers an opportunity for yield. Cryptocurrencies yield higher returns compared to other asset classes.
PulseX provides the most transparent trading experience as it enables users to see on-chain which addresses trade which assets, and how much money they have left to buy more.
In terms of efficiency, transacting on PulseChain costs less than $0.01, and confirmations occur in about 10 seconds, while Bitcoin transactions can take from minutes to hours and cost multiple USD in fees. PulseX utilizes this network to enable fast and affordable swaps between PLS and PRC20s.
PulseX offers lower fees than most other competing exchanges, making it a more cost-effective option for users. Most tokens inflate at high rates, whereas PLSX maintains a fixed supply, making it rarer over time. Additionally, 21% of all fees on PulseX can be used to buy up PLSX and burn the freshly purchased tokens, thereby increasing their rarity.
The sacrifice phase for PulseX started in January of 2022 and ended in February of 2022.
Sacrificers sent money to a sacrifice address to make a political statement for freedom of movement.
If you sacrificed, you can check your points here.
PLSX token is now available to buy on PulseX.
PulseChain Mainnet went live on May 12th, 2023.
The https://t.co/vZIuPqXDpo main net is now live.
— Richard Heart (@RichardHeartWin) May 13, 2023
The PLSX contract address on the PulseChain main net is: 0x95B303987A60C71504D99Aa1b13B4DA07b0790ab and has 18 decimals.
PulseX staking works via a mechanism called single-sided staking which earns them rewards in a variety of different tokens.
Holders can stake a capped amount of PLSX tokens in sponsored pools.
These sponsored pools are essentially projects which are giving away “freemium” with hopes of onboarding more users into their projects.
The sponsored pools are chosen via a DAO vote.
The PulseX DAO has responsibility for voting on two aspects of the protocol:
The PulseX voting works simply: 1 PLSX, 1 Vote in the DAO.
Even users who have their PLSX in liquidity pools or in the staking contracts retain the ability to vote.
Liquid Loans is proposing that PLSX holders vote to provide incentive token for pools such as USDL/PLS, USDL/eUSDC, and USDL/PLSX.
The reason for this is:
The PulseX Incentive Token (INC) is a token which is paid out to liquidity providers of certain pools that are chosen by the DAO.
As the name suggests, the Incentive Token rewards liquidity providers to build up thick liquidity on the pairs which the community decides is best for the collective.
Three features make PulseX tokenomics superior to any other DEX token:
PulseX has implemented a highly competitive fee structure for its users.
With a 0.29% fee on each swap, it beats out popular exchanges such as Sushiswap, Trader Joe, Quickswap, and Uniswap. Of the 0.29% fees on each swap:
Overall, PulseX's fee structure is designed to be highly beneficial for its users, liquidity providers, and token holders.
The PulseX buy and Burn is a highly price positive function for PLSX because it:
The buy and burn does a “fee scrape”. In this instance, it takes 21% of the trading fees on the platform and uses it to buy PLSX and send it to the null address.
For example, if somebody swaps 1000 USDL to PLS, 29 USDL is taken as a fee.
21% of the 29 USDL is 6.09 USDL.
Now, 6.09 USDL is sent to the Buy and Burn contract which will swap 6.09 USDL for the corresponding amount of PLSX.
This PLSX is then sent to the null address (0x000000…00000) where it will stay forever.
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Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.
Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.
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