A detailed look at the token driving the Rockswap platform — RSWP.
RSWP, what is it good for? As it turns out, quite a bit, and it is actually only getting more interesting as the platform matures and new features come to light. Being in communication with the core team I sometimes find some interesting information — and hey, I figured I would tell everyone.
To get any new people up to speed, lets take a brief look at the pertinent history of RSWP. RSWP is the token used by the Rocketswap exchange (http://rocketswap.exchange). It was launched in late March 2021 as a fair launch (everyone started from 0 RSWP, even the Developers). The only way to accrue RSWP was to stake Lamden (TAU) and receive it as it was emitted. There are 1.2 billion total supply which will be released slowly (emitted) over time. The best year for this is the release year (2021) where 50 million TAU will be emitted for the staking and 250 million for the liquidity pool.
OK now you are caught up — fast forward 1 month (things move quickly in crypto) and we are looking at our first round of enhancements and additional features. I was bullish before, but now more so.
What does/will RSWP do?
- Reduces exchange fees when paying in RSWP by 25%
- Reduces fees further when staking RSWP (in the fuel tank)
- Earn RSWP when staking RSWP
- Earn RSWP when part of the RSWP liquidity pool
- Governance token for DAO to allow voting on exchange direction (planned)
- It’s a deflationary token due to burning
I am so excited about this, lets just go through them all in detail!
Exchange Fee Reductions
The first one is easy — a flat 25% reduction in fees paid on Rocketswap.
The second fee reduction is based on the amount staked in RSWP (minimum of 1361). I have covered this previously but for the sake of keeping it neat, lets go over it quickly.
I cover the contract breakdown and specifically how the discounts are applied in detail — here. Lets just jump to some of the interesting stuff.
The staking discount formula is as follows — ln({RSWP})*0.07–0.505. If we plot that it looks like the line in blue below:
So how much is enough? This really is a personal choice, however as you can see, the benefits start to diminish as you get into the higher regions. For me, I penned in the tangent line, in red above. Somewhere in the region of 34,500 to 50,000 RSWP would be a good range if you intend of doing a decent amount of transactions on the exchange. Which would equate to a 22.641% or 25.238% discount respectively. Pushing to 30%, would require close to 100k RSWP. However, this really is personal preference and depends entirely on what you are using RocketSwap for and what you are trying to achieve.
For smaller investors that intend to trade a reasonable amount of the time, a target of 3694 RSWP yields an excellent ‘cost/benefit’, netting you a 7.0013% discount. I think the actual perfect figure is a 7% discount which correlates with the formula above using 0.07 — if we are talking of maximising the benefit based purely on discounts vs investment.
Earn RSWP by staking RSWP
Sounds crazy doesn’t it, you earn additional RSWP by staking your existing RSWP.
Why is this an interesting one? Well because of the fair launch — everyone started with 0 RSWP and there is only so much RSWP in existence. The rewards from this could potentially be very interesting for holders of RSWP.
You could hold it to increase your position in RSWP, swap it for TAU, or get into the liquidity pool to potentially earn more RSWP in the first year.
RSWP Liquidity Pool
So currently in the liquidity pool you receive 0.5% of the trading volume of that pair as a fee (subject to any discounts the person is using). The Rocket farming will allows you to take your liquidity points from this pool and stake it to receive a share of RSWP emitted.
Sound good. whats the catch — read up on impermanent loss. With a fluctuating market there is potential for this to occur, however this will potentially be offset with these crazy rewards on offer. An interesting one to keep your eye on for sure!
Governance Token
RSWP will be the governance token for the DAO (Decentralised Autonomous Organisation). This will allow a holder to petition other holders through proposals and then allow holders of RSWP to vote on those proposals to help shape the direction of the exchange.
What could you change? I am working from some notes, however anything is possible:
- Additional features or removal of features
- Changes to fees
- Changes to rewards
- Changes to staking or liquidity variables
As I understand it, if it is in the platform you can petition to change it via the proposal mechanism. If it is not, you could submit a proposal to add it.
It’s deflationary
As if all this is not enough to get you all foamy. The token burns on use — 20% of the transaction fees are burnt as RSWP, never to be seen again and thus reduce total supply.
I’m in, how do I get it?
Swap TAU for RSWP on Rocketswap
Future avenues potentially will be additional pairs USDT/USDC/WETH/BNB/WBTC etc (these are just my guesses).
Check it out at https://rocketswap.exchange or drop in to the telegram t.me/rocketswap
Disclaimer: This is an opinion piece, nothing I say here is financial advice. I hold a bag of RSWP and am involved with the development of the Rocketswap platform. My opinion should only form a small fraction of your research into this token — in other words DYOR, I am a random internet stranger.
