Campfire Whitepaper
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THE PROTOCOL
IMPORTANT INFO
CampEX (Exchange)
CampEX is a reserve-backed decentralized exchange (RDEX). It's built by combining an Automated Market Maker with owning parts of its liquidity.
CampEX builds on Uniswap V2 by adding functionality to artificially inflate the total value locked (TVL) for pools with stablecoins. Doing this reduces trade slippage, allowing users to get a better price, and creates incentives for market makers to provide liquidity to the exchange. Meanwhile, it also allows LPs capital to be used more efficiently, and in turn nets them more LP rewards.
CampEX has an industry low trading fee. The fee is paid by any trader who executes an order. After that, it’s split in thirds:
- 1/3 goes to the Treasury.
- 1/3 goes to vesCAMPFIRE holders.
- 1/3 goes to the Liquidity Providers.
Bonds-as-a-Service
CampEX gives projects/tokens the ability to acquire and own their own liquidity with our bonds-as-a-service, directly embedded in the CampEX platform. By utilizing bonds-as-a-service, projects/tokens gain many benefits such as but not limited to;
- Extra exposure as their bonds will be featured on the campfire bonds marketplace
- New revenue streams by capturing liquidity fees
- Price stability and protection from massive liquidity exits
- Healthy price action, attracting long-term holders
- Incentivized (through discounted tokens) investors who help the project/token succeed
- Permanence of liquidity and provides security for the project/token and its users.
For example:
Instead of users staking their LP (liquidity provider) tokens for farming rewards in a pool, users can exchange their LP tokens for the project's tokens at a discounted rate. This is done through a process called Bonding. As the protocol never sells these LP tokens, the liquidity is effectively locked within its holdings.
Liquidity Pools
CampEX allows for its users to add a pair of Crypto assets into a Liquidity Pool, receiving LP tokens representing their share. After they do that, they start receiving a proportional part of the trading fees of the pool.
For example:
If you deposit $CAMPFIRE and AVAX into a Liquidity Pool, you receive CAMPFIRE-AVAX LP tokens. The number of LP tokens received represents your share of the CAMPFIRE-AVAX Liquidity Pool. You can proceed further with your LP tokens at your best interest, for example by depositing them into the liquidity mining program to earn rewards, or by buying Bonds ($CAMPFIRE tokens at a discount)!
All funds are redeemable at any given time by removing your Liquidity.
Asymmetrical Tuning
Asymmetrical tuning allows the CampEX to support tokens with asymmetrical risks better than other swap designs.
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Last modified 6mo ago
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