Peanut uses its own smart contract system to reduce slippage after transactions and help users of decentralized exchanges increase revenue.
Written by: Williamyoyo
The DeFi craze set off last summer made the cryptocurrency market take a big step towards the decentralized “initial heart”, and the most important trading track in the financial field also ushered in the explosion of DEX. Head decentralized trading volume such as Uniswap has surpassed many first-line centralized exchanges including Kraken. Uniswap has also achieved a single-day trading volume exceeding the industry benchmark Coinbase “feat.” It can be said that the current DEX Has been officially recognized by most cryptocurrency investors.
However, for most DEXs that use automated market makers (AMM) to provide trading liquidity, Impermanent Loss is an inevitable pain point.
After users provide liquidity to the liquidity pool, if the relative price of the invested assets changes, which is different from the price when the assets enter the pool, impermanent losses will occur. The greater the change in asset prices, the higher the impermanent losses suffered by liquidity providers.
In addition, since every decentralized exchange (DEX) transaction will affect the price of pooled assets, this will cause the price of decentralized exchanges (DEX) to appear different from the prices of other decentralized exchanges and centralized exchanges ( CEX) The phenomenon that prices are completely out of sync. The phenomenon of arbitrage arises, and savvy traders will scramble to arbitrage from these price differences. In September 2020 alone, user losses due to slippage on Uniswap exceeded US$150 million.
If decentralized exchanges want to be accepted and adopted by more people, problems such as impermanence loss and slippage must be found to be effective solutions. The goal of the Peanut team is to find answers to the widespread pain points in this market.
What is Peanut?
Peanut was developed to solve the inherent problems of decentralized exchanges (DEXs). Peanut can be understood as an advanced price balancer tool, that is, through its own smart contract system, it can automatically balance prices after each transaction to help reduce slippage, thereby helping liquidity providers earn more profits without Manual operation.
Peanut’s advantages include:
- Increase passive income
- Reduce the risk of impermanent loss
- Reduce slippage
- Provide governance token reward mechanism
- Automated
Because Peanut has a unique multi-level structure, Peanut can minimize the slippage of a decentralized exchange (DEX) even when the market is highly active. Peanut will directly inject 90% of the liquidity into the Uniswap liquidity pool, and the remaining 10% will be used for the agreement itself. When a large number of trading orders are generated, the 10% of the assets will be used as a tool to balance the price and trade on platforms other than Uniswap to eliminate slippage.
At present, there have been many attempts to solve the problem of impermanent loss on the market. Most of the solutions are to reduce the corresponding risk by establishing a specific fund pool, but this will inevitably have some negative effects on the liquidity of the platform. Peanut has made a bolder attempt. By establishing a common agreement for all leading AMMs, it has opened up a considerable market, including cooperation with Uniswap, Curve, and Sushiswap, and uses the liquidity of other platforms to maximize Reducing the “price deviation” of the corresponding trading pair on a specific platform can effectively reduce the risk of impermanent loss. At present, Peanut’s internal beta has officially started.
Peanut launched the native token NUX. The functions of NUX include: distributing operating profits, adjusting interest rates, and providing additional bonuses to liquidity providers.
Peanut’s team
The founder of Peanut is Alex Momot. He has entered the encryption industry as early as 2013. He has more than 12 years of experience in project management and business management. He has worked in the Ukrainian Bitcoin Foundation, some mining machine manufacturers and several A blockchain startup, Alex Momot currently serves as the CEO of Peanut and Remme.
Remme is an encryption project that provides distributed public key solutions. The team has rich experience in the encryption industry. In 2018, about 5,000 people participated in Remme’s initial token sale, and the Remme token sale cap of more than 20 million US dollars was reached in just 24 hours.
At present, the products that the team has developed include the next-generation PKI protocol as the identity creation layer. Auth by Remme is a human identity management application that has been on the iOS store. Keyhub is a machine language management SaaS solution, and Swapy is A cryptocurrency trading platform pursuing the best trading path.
The Peanut team has started cooperation with Curve, a trading liquidity pool on Ethereum. Peanut links its agreement with Curve to balance the price of trading pairs and reduce slippage.
The economic model of the native token NUX
NUX, as an encrypted asset generated by the Peanut algorithm tool, is an important tool for Peanut to balance token prices. Peanut will sell some tokens to users to increase the liquidity of Peanut’s fund pool.
NUX is a utility token based on ERC20, which can be deposited in any ERC20-based wallet. According to Peanut’s token economic model, 40 million NUXs are minted and distributed in the following ways:
- 6 million NUX airdrops to REM token holders and REMchain users
- 10 million NUX for pre-sale and public sale
- 10 million NUX for community/partnership/incentive
- 10 million NUX for further development of the project
- The team holds 4 million NUX
In addition, 10 million NUX will be issued to motivate participants in liquid mining.
How to participate in Peanut’s NUX public offering
The rules of public offering are as follows:
- Start date: February 2nd 21:00 (Beijing time)
- End date: February 6th 09:00 (Beijing time)
- Supply: 6 million NUX
- Auction method: Dutch auction
- Starting price: $2.50
- Final price: $0.35
- Personal participation limit: 0.1 ETH
- Individual participation limit: 100ETH
- Accepted currency: ETH
- ETH auction price: confirmed one hour before the auction
- Initial unlock tokens: Up to 20% can be obtained at the beginning (depending on the increased hard cap level)
NUX has completed the private placement round, the private placement price is 0.25 US dollars / piece, locked for 25 months (750 days), and unlocked 4% every month.
NUX is about to usher in a public offering on February 2nd. 600 NUX tokens will be issued in a Dutch auction model. The price range will be from a starting price of 2.5$ to a final price of 0.35$. The NUX issued by the public offering will also be locked, and the lock-up time will also be 500-750 days according to the price of the cemetery:
One month after the end of the public offering, NUX will be listed on the Uniswap exchange. The initial unlock rate of NUX for public sale may be as high as 20%, because the unlock rate is determined according to the final price of the public sale:
For more details and related tips about NUX tokens, please inquire .
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