Despite many advancements, today’s DeFi platforms still suffer from low capital utilization and liquidity, costly impermanent loss, poor community governance capabilities, and token incentive deficiencies
Many DEXs distribute transaction fees based solely on liquidity providers’ actual contributions. This approach leaves important ecosystem participants out in the cold — liquidity pool creators, early-stage liquidity contributors, and non-financing community members such as community managers, marketers, and other industry influencers.
We believe that these community members also share important functions that help raise the TVL tide that lifts all DEX boats and that they, too, should receive incentives for their efforts.
As importantly, many DeFi pool communities still lack the necessary autonomous governance to take full advantage of their potential value.
A more open, flexible, autonomous, and comprehensive platform is needed to continue to evolve DeFi in the right direction and maximize its full potential. Enter Mercurity.Finance, a new open DeFi platform powered by Mercurity Swap that will allow anyone to create and operate their own liquidity pool fund.
Mercurity is an open DeFi platform powered by swap. The most important problems we aim to solve are: low capital utilization, impermanent loss risk, and poor community governance capabilities. We’re starting with DeFi, aiming to provide the most open, flexible, autonomous, and comprehensive DeFi trading and liquidity services to retail consumers anywhere, anytime. But that’s just the beginning of our story…
To build the most global, unified, and diverse DeFi ecosystem by connecting the world’s best DEXs and DeFi communities across the globe.
To unlock and accelerate access to new financial value for anyone, anywhere.
We aim to empower liquidity pools with an unprecedented level of autonomous governance options and growth incentives. For example, we’ll provide each liquidity pool with its own General Partner (GP) and governance capabilities such as setting transaction fees, pool access requirements, trading rules, and voting rights.
Our big DEX innovation is Pair Token, an incentive token for liquidity providers that enables unprecedented governance of individual liquidity pools.
Traders often want lower transaction fees, while liquidity providers want relatively high fees to compensate for their impermanent losses. In addition, some traders prefer or need to trade with counterparties that have gone through KYC / AML compliance requirements, while other retail users prefer the speed and anonymity of bypassing a burdensome KYC process.
To address this conflict between different user group’s needs, we believe unbundling and better segmenting features will allow us to better serve specific user groups’ needs. We aim to accomplish this by leveraging the synergistic value of multiple AMM protocols: swap, lending, impermanent loss insurance, and synthetic assets.
We’re launching multiple protocols — swap, lending, impermanent loss insurance, and synthetic assets — designed to operate independently or work together seamlessly on various DEXs to provide more value. For example, a stablecoin liquidity provider (LP) could also become an LP of a lending or insurance liquidity pool too. Mercurity empowers liquidity providers to reuse its various LP tokens across multiple protocols to maximize yield.
While traders on DEXs bear higher gas fees and potentially larger price slippages than on CEXs, platforms like Uniswap do not compensate traders. In contrast, Mercurity considers traders to be as important as liquidity providers and therefore, plans to ensure that traders receive DFM token rewards based on their trading activity.
A quick overview of the key features planned for Mercurity.Finance:
Swaps (Mercurity Swap Protocol) — Be a General Partner (GP) of your very own liquidity pool. Set your transaction fees. Get the best asset prices across pools with our on-chain smart order routing (SOR) engine. Mercurity Swap enables community autonomy for each liquidity pool. Each pool is like an independent fund, and Mercurity Swap becomes the infrastructure for ETF funds, helping to build an ecosystem that allows everyone to create and operate an ETF fund.
Lending (Mercurity Lend Protocol) — Stake your LP tokens to earn interest and lending pool governance tokens from lent trading pairs. Mercurity Liquidity Lend Protocol is a fully decentralized, money market protocol for staking LP tokens to lending trading pair assets. The Mercurity Lending protocol is designed to improve the LP’s capital utilization and allow lending users to obtain liquidity benefits from impermanent losses.
Impermanent Loss Insurance (Mercurity Insurance Protocol) — Stake LP tokens to earn premiums and insurance pool governance tokens. Pay premiums with your LP tokens to lower impermanent losses.
Synthetics (Mercurity Synthetic Asset Protocol) — Issue synthetic assets based on your risk appetite and investment preferences.
We will be launching LP token staking, liquidity farming, swaps, and rewards rules in the next several weeks. So please join the conversation in our social channels below to be the first to hear about upcoming news, contests, and more!
We know this is a big vision, and we can’t execute it alone. We need YOU, our community because you’re our most important asset.