Description

Implementing a Decentraland community-first DEX would be a key step in creating sustainable, on-chain infrastructure for the DAO. As a cash-flow generative and fundamentally Decentraland-backed asset, the DEX would provide a solid DeFi foundation for the ecosystem, and will benefit $MANA holders sustainably into the future. With the Decentraland community containing many Web3 users and investors, the utility of an Decentraland DEX will generate significant value for existing holders, incentivize new Decentraland holders to join, bring liquidity providers into the $MANA ecosystem, and will create more demand for $MANA. Additionally, the fees derived from the DEX will serve to increase the DAO treasury value as a whole through DEX revenue. The core of this proposal is centered around our motivation to build for the community, and embrace Web3 values through the implementation of technically sound, user-friendly, DeFi infrastructure. The goal of the Decentraland DEX is to create a self-sustaining, cash-flow generative addition of digital infrastructure to the Decentraland ecosystem. Major swaps like Metamask, Uniswap, Sushi, and GMX offer trading fees as high as .875%. Decentraland DEX will provide: key trading pairs to allow our community to trade with a single DEX UI, competitive/lowest trading fees, charting, integration with other DAO infrastructure, top-of-the-line design and development, and more. $MANA generates over $100m per day in trading volume on average. If the Decentraland DEX is able to capture just 1% of this volume, the Decentraland treasury could grow by $720,000 over one year. Our proposal represents less than 10% of this cost. $MANA holders are valuable community members and the target market for DeFi products. Decentraland DEX offers $MANA holders a commercial incentive to support $MANA-backed infrastructure directly benefiting them and the DAO. DEX growth creates a flywheel of incentive for $MANA holders, driving further adoption. Key value to highlight: DEX will attract $MANA liquidity DAO establishes core DeFi infrastructure Revenue to be directed to Decentraland DAO to increase treasury holdings Brings DeFi users into Decentraland Specifications | Solidity.io 2 will design, develop, and deploy a decentralized exchange for the Decentraland DEX. The DEX will utilize modified Uniswap v2 core contracts to enable the decentralized exchange of ERC-20 tokens. All data points from the DEX will be aggregated to a decentralized datastore to enable real-time charting on the platform. Utilizing the customized Uniswap v2 contracts, an exchange SDK will be created to allow for an easy swaps of assets. The SDK will enable Decentraland builders to integrate native swaps on core Decentraland infrastructure. Builders will be free to skin the SDK into other core Decentraland infrastructure, allowing accessibility across the Decentraland community. This offers a new tool for platform developers to create innovative applications and integrations. Users can swap in and out of tokens utilizing the platform’s liquidity to perform transactions. The swap will display relevant information, including price impact, slippage, and deadline. In addition to swap, users will be able to add liquidity to pairs, this process will be a separate flow allowing users to customize their transaction.