The idea for project development is to follow the KISS rule, so the team decided to have a community testnet phase, followed by a liquidity launchpad and then move to normal operation of the DEX.
Before Launchpad, an open testnet phase will be done, to ensure that the contracts are bug-free and safe for use. The community will be involved in this very important task and will be rewarded with USTX tokens depending on their level of participation and contribution. The amount of tokens distributed to CTN participants is 5% of the total liquidity raised during launchpad. The CTN will run on Tron testnet (Shasta/Nile) and simulated USDT (and other stablecoins) tokens will be traded for USTX. The test USDT tokens will be generated compiling the real USDT contract, using the same compiler version and optimization levels as the real one.
The goal of the launchpad is to collect enough liquidity to be able to start trading on the DEX with low slippage. The launchpad will last 4 weeks and will have at most two rounds:
· Round 1: 10M USTX at 0.01USDT price.
· Round 2: 10M USTX at 0.012USDT price.
There are a few rules for the launchpad phase:
· The launchpad is hard capped at 20M USTX, without soft cap; in any case after 4 weeks the launchpad will end and the DEX will begin normal operation.
· 90% of the USDT liquidity generated during the launchpad is locked in the reserve. The team cannot withdraw it, ever.
· 10% of the USDT liquidity will be used by the team to pay the initial expenses and finance short term marketing and development of the DEX website.
· The launchpad orders will be limited in size. We do not want a few big holders, but distributed participation to validate the concept.
Normal operation of the DEX, after launchpad, will begin at 0.015USDT price.
The team will not hold at any time more than 15% of the total supply and will commit to the following vesting periods:
· 100% locked for the first 3 months
· 90% locked for the following 3 months
· 50% locked for the following 6 months
· Unlocked after 12 months.
5% of the tokens will be reserved for marketing and another 5% for development expenses.
Regarding the token distribution, we can have multiple scenarios, depending on the success of the launchpad. Here are represented two scenarios, one that shows the case of Round 1 completion and one with both rounds completed.
Normal DEX operation
After launchpad, the DEX USTX reserve will be primed to get the initial exchange price set at 0.015USDT. This will be achieved by calling a USTX contract function to mint or burn tokens of the internal reserve so that the ratio between USDT and USTX is 0.015.
The exchange fee will be set at 0% for purchasing tokens and 1% for selling tokens. The fees will be used by the team to be able to sustain the project in the long term. The smart contract has hard caps for the fee levels: in any case they will never exceed 2%.
The DEX contract will provide the following exchange features:
· Buy tokens with exact input in USDT (or USDJ, TUSD, USDC)
· Buy tokens with exact input in USDT (or USDJ, TUSD, USDC) and send them to a recipient
· Sell tokens with exact input in USTX and get USDT (or USDJ, TUSD, USDC)
· Sell tokens with exact input in USTX and send USDT (or USDJ, TUSD, USDC) to a recipient
Each operation will be carried out using Tronlink interface directly from the DEX website, protected by TLS. Two signatures will be needed to complete every transaction: approve and transact. Unlike some the DEX out there, the approve transaction will be limited to exactly the amount needed to be transferred. Blank checks are not permitted. The network fees will be paid using Tron native blockchain, so a small amount of TRX is required to be present in the wallet of the user. The fees will be lower than 20TRX and can be brought down to zero if the user has enough Energy and Bandwidth available.