Preface to TRAMS DEX and TRAMS token
The DeFi evolution has allowed better and faster user interactions with digital assets. With the innovation of Automated Market Maker solution, traders can easily exchange digital assets at any time with guaranteed market supplies from the liquidity pool without giving up the custody of their digital assets. Decentralized exchanges also create open access opportunities for participation without any controlling institution.
One of the most successful DeFi project examples utilizing AMM measured by TVL is Uniswap. Many DeFi projects are trying to improve on the AMM design with creative features such as Sushiswap and SakeSwap. Both are Uniswap “forks” which have introduced a governance tokens model.
Introducing TRAMS DEX
TRAMS DEX combines the successful AMM swap model from Uniswap and the governance token models introduced by Uniswap’s predecessors. To improve on the design features of AMM, TRAMS DEX introduces a pro-active contributor rewards model and price appreciation mechanism.
The key functions of TRAMS token are governance rights and income earnings. In Trams Decentralized Exchange architecture, TRAMS token holders are the actual owners of the protocol where each token represents the governance rights in form of voting power to allow liquidity providers and traders to continue receiving benefits on the platform. These token rights are transferable without having to relinquish the ownership of the token.
TRAMS token supply
While most digital tokens in the market suffer dilution and depreciation due to unlimited total token volume, TRAMS was designed to maintain the project’s feasibility and. appreciate in value with a limited total token volume structure. Refer to the whitepaper for details.
Income & reward distribution
TRAMS DEX generates income from a service fee of 0.3% which is charged per transaction. The distribution of the incurred fees are as follows: 0.26% will go directly to the active liquidity providers of the respective pool and the remaining 0.04% will be allocated as revenue yield for staking TRAMS (paid in the form of additional TRAMS.)
The TRAMS DEX incentivizes contributors with additional rewards for staking TRAMS. The positive impact on price discovery of the liquidity pool is maintained by automated pool balance. xTRAMS token holders are rewarded with additional revenue for their staking contribution to maintaining the balance.
Once the full migration is completed and sufficient liquidity is reached, TRAMS governance initiative will activate, TRAMS holders can then make proposals and actively vote to change the TRAMS DEX protocol. These changes might include new pool creation, retiring existing pools, or adjusting the weight of TRAMS token.
For optimum security and project viability, TRAMS DEX will maintain continual protocol iterations and undergo project security audits. A 10% withholding from the 0.04% service fee charged by TRAMS DEX will be used to pay for the implementations as described.
All bugs reported by the Uniswap and subsequent Sushiswap and SakeSwap security audit have been fixed before TRAMS DEX launch. All audit results will be updated through our communication channels ie. Discord, Telegram, and Twitter.