We are in the wave of the blockchain revolution. What the blockchain brings to mankind is not only the innovation of productivity, but also changes for the production relationship of traditional organizations. Traditional enterprises mostly focus on distribution from top to bottom, while the value of the blockchain era is generated from bottom to top. Token builds a tight connection between productivity and organization, and help form a bottom-to-top production relation. Although this new production relation may not be more effective than the previous one, it can add robustness and bring better incentive effect for individual capacity. It is the Token that makes these better characteristics come true. Therefore, the Tokenomics design is the most important factor that sustains the success of projects.
Tokenomics is refined from Bitcoin. Bitcoin equals Blockchain plus Tokenomics. After 10 years of development, Tokenomics has gone through from laboratory (Bitcoin) to industrialization (ICO), and further to current equal distribution (Liquidity mining). During this process, token has changed from early functional token (only used as service charge) to token with strong capitalization (Staking, Yield Farming). How to properly design the functionalization, capitalization and supply-demand relation of token to realize a positive increase for token and the system is our continuous study in 2018. HawSwap is a specific realization for the Tokenomics model.
Economic Model
A brief instruction for the HawSwap’s Tokenomics model is shown as follow:
Since HawSwap is a decentralized financial coverage system that aims to improve on-chain capital efficiency, we have taken full consideration to add DeFi modules as many as possible, such as Swaps, Loan, Option Insurance, Auction, DAO, Staking Pool and Earn. All these models can meet different demands of users and reduce the capital frication between different trading platforms, thus maximize the utility of capital.
For users with wealth management demands, HawSwap has designed two wealth management modules with different risk levels: no impermanent loss (NIL) and low impermanence loss (Low IL). Both these two modules contain two reward pools, all users have right to mine in two pools. The system will automatically exchange the LP and CDP. Currently, this function has been realized and the product will be released after the audit gets through.
In the next section, we will introduce Low IL, NO IL, Staking, Growth and DAO five modules one by one.
Low IL: Users put liquidity (multiple assets) into Swap pool to get LP and HAW reward, then stake the LP into Loan pool to get the second HAW reward. Users participating in Low IL can gain the right to make loan with 0 pledge. Besides, 20% of HAW reward from Low IL module will be automatically distributed to HawInsure pool to buy insurance for LP users, in order to reduce the IL of users.
NO IL: users put a single asset into Loan pool to get CDP and HAW reward, then stake the CDP into Swap pool to get the second HAW reward. Users participating in No IL can gain a montage line. Although the HAW reward is low for NO IL module comparing with Low IL module, NO IL module does not bring IL.
Staking: Users holding HAW can stake HAW token into Haw Pool to gain HAW benefits.
Growth: this module is used to distribute the benefit of system. Users need to be charged with a service fee when they use the product in the system, which will make the system a lot of benefits. Currently, 50% of these benefits will be managed by HawDAO and the other 50% of benefits will be used to redeem HAW from the second market. The redeemed HAW will be destroyed to help HAW continually increase.
DAO: DAO is organized by HAW token holders and the development team. Users in DAO can govern the HawSwap system by voting and proposing, such as HAW token inflation rate, 0 montage loan rate, asset pledge rate, insurance option purchasing and the buyback cycle in the secondary market.
The last key point of token HAW
The total supply of HAW token is 25, 000 at most, and with its repurchase and burning in the secondary market, HAW token will be a deflationary token in the future.
Functionality: trade, governance, dividend, deduction for the service fee in HawSwap
Advance Notice
HawSwap will presale in the night of Dec 8th 2020 (Singapore Time). Sales details will be released in the near future. To avoid missing out on important information, we strongly recommend you to follow our official Twitter which is our official channel to release information. Look forward to meeting you here.
GitHub：https://github.com/coinrapIo
Twitter：https://twitter.com/HawSwap
