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Hook

• The name is decided: DotSwap

What is it?

A DEX on the common goods parachain Statemint (& Statemine) on Polkadot, with these goals:

• Provide DOT liquidity against external tokens: BTC, ETH, KSM, USDT, USDC
  • yes, USDC is coming to Statemint
• Enable Sufficient assets: Onboarding to Polkadot without owning DOT
  • bring your own gas: pay fees in any sufficient asset
• Allow other DOT-bound pairs

Details

• Mechanics
  • Exchange commission of 0.3% goes to LPs
  • Uniswap V1-like: only XYK curve planned, nothing fancy
  • only pairs against DOT
• Tokens
  • Parachains can register their native assets on Statemint
  • permissionless pool creation
  • BridgeHub as a message router
• Logistics
  • Audit by SRLabs
  • Runtime upgrade expected in Q2

* But: The prediction market thinks differently

UIs/Analytics

• Parity only builds pallets, they won’t offer a UI
• anyone is invited to create one
  • think grants

FAQ

• Will it be on Kusama too
  • “yes”, and “likely”
• Are there already deals with market makers
  • but, it is permissionless, anyone can do it
• Incentives? (Discussion)
  • DOT
  • Other tokens?

Discussion

• Will provide much-needed liquidity relief
• Resistance is futile. It will be “the monopoly” in the mid-term and it will command the flow
• It will be a net positive for the ecosystem
• DEXes have a more challenging time now, fearing “the monopoly”
  • They will have to provide superior value to traders and liquidity providers
• This creates a tectonic power shift, as a lot of attention now goes into how to work with it
  • Lots of implications in fields like capital onboarding flows, XCM use cases, potential liquidity reuse
• Prediction: Statemint will become a trusted intermediary and settlement chain (Tweet, Forum)

Open Questions

• Would DOT incentives put DOT at risk of becoming a security?
• Can the Treasury become a liquidity provider and hold protocol-owned liquidity?
• Can LP be reused cross-chain?
  • With XCM V3 Remote Locking?
  • synchronicity is the key problem

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Further Reading

• 2022-11 Statemint Roadmap
• 2022-12 Discussion Thread
• 2022-12 Twitter Space with Robert Habermaier
• 2023-01 Summary Thread
• 2023-02-02 Statemint will become a trusted intermediary and settlement chain
• 2023-02 Community Vote on Name: DotSwap
• 2023-02-16 Current thoughts