Mars DeFi protocols
Last updated
Last updated
The Mars DeFi protocols include the DeFi platforms such as Mars Swap and Mars StableSwap that are necessary for USDm to realize the basic functions of a stablecoin — being a medium of exchange and store of value.
Mars Swap is a Uniswap-type AMM DEX ( Automated Market-Maker Decentralized Exchange)
Mars Swap incentivizes liquidity provision and transactions of USDm through protocol implementations such as liquidity mining and trade mining programs.
The transaction fee on Mars Swap is 0.3%, 0.25% goes directly to LP and 0.05% goes to XMS holders who stake XMS at Mars Swap. The specific method of distributing transaction fees to XMS stakers is to repurchase XMS with transaction fees directly at market value and redistribute them.
The design that XMS stakers can obtain Mars Swap transaction fees is one of Mars Ecosystem's solutions to the positive externality problem; a central issue withing many other stablecoin protocols. The value generated by USDm circulation in the DeFi world can also be captured by Mars Ecosystem's governance token XMS. This design also provides additional value support for XMS, which in turn helps ensure the stability of USDm
