$PLANET
RadixPlanet is a decentralized cryptocurrency exchange (DEX) built on the Radix network. It was developed by the RadixPlanet team to provide a fast, secure, and easy way to trade tokens on the Radix ledger.
Introduction
The RadixPlanet DEX launched in 2023 and utilizes the unique capabilities of the Radix protocol to offer features not found in other DEX platforms. Key highlights of RadixPlanet include:
- Support for creating liquidity pools with flexible rules and incentives
- Options for public and private liquidity pools
- Liquidity mining rewards distributed based on trading volume to incentivize providing liquidity where it is most useful
- Configurable swap fees and royalty fees to support development
- An integrated treasury to fund future development through collected fees
- A two-way Bitcoin bridge to allow wrapping Bitcoin for use on Radix
The RadixPlanet DEX aims to leverage the scalability, security, and composability of the Radix network to create a next-generation DEX for trading tokens and providing liquidity. The project is led by the RadixPlanet team and supported by the Radix community.
Features
Full-Range Pools
RadixPlanet utilizes full-range liquidity pools at launch. Full-range pools allow the price of tokens within the pool to fluctuate freely based on supply and demand, from zero to infinity. This helps ensure that liquidity does not completely dry up on one side of the trading pair.
Full-range pools adhere to the standard formula: x * y = k, where x and y represent the available liquidity of the two tokens and k is a constant. This formula maintains the invariant relationship between the two sides of the pool as trades occur.
Compared to concentrated liquidity models, full-range pools carry the risk of larger impermanent loss for liquidity providers due to higher price volatility. But they allow any price range to be supported.
Multi-Token Pools
RadixPlanet also supports multi-token liquidity pools at launch. Multi-token pools contain three or more tokens rather than the typical two tokens. When executing a trade, two tokens within the pool are selected. The smart contracts will handle the pricing and exchange between those two tokens based on their available liquidity in the pool, while the other tokens are unaffected.
Multi-token pools provide flexibility in the trading pairs that can be supported. They also reduce the need for multiple two-token pools between a group of tokens. However, they can introduce additional complexity in valuing the underlying assets.
Private/Public Liquidity
RadixPlanet allows liquidity pool creators to configure pools as either public or private. This provides flexibility in how pools can be structured. Public pools allow anyone to provide liquidity. They offer full transparency to liquidity providers, as the parameters of the pool cannot be changed after creation. Public pools help attract liquidity by being open and non-exclusive. Private pools require approval to provide liquidity. Only addresses that have been granted a pool membership by the manager can add funds. Private pools give the creator more control over the liquidity sources and management. They can be useful when trying to limit access or create exclusive trading environments.
Adding Liquidity
Adding liquidity to pools on RadixPlanet is handled through Non-Fungible Tokens (NFTs) representing liquidity positions rather than typical fungible LP tokens. When first supplying assets to a pool, a new NFT “liquidity badge” is minted to uniquely represent the position. Users can later add to an existing position to increase the amount of liquidity represented by that NFT. This helps simplify tracking returns from a given liquidity amount over time. NFT liquidity positions integrate with other signature RadixPlanet features like withdrawable earnings. Owners can manage or move positions while retaining associated earnings claims from collected fees.
Customizable Fee Rules
RadixPlanet allows custom fee rules to be set on new liquidity pools. Creators can choose different fee types, collection methods, and beneficiary addresses to incentivize providing liquidity tailored to their use case.
Available fee rule configurations include:
- Fee Type
- Percentage of trade amount
- Fixed token amount
- Collection Method
- Add to liquidity
- Route to fee address
- Fee Token
- Specify which token fee is collected in
- Fee Amount
- Percentage or fixed token quantity
Multiple fee rules can be stacked to split fees between liquidity providers, pool creators, treasury deposits, etc. Flexible fee rules allow unique liquidity pool configurations and incentives.
Automatic Re-Investing
Fee rules on RadixPlanet can enable automatic re-investing of collected fees back into liquidity pools.
By using an "Add to Liquidity" collection method, swap fees get routed directly back into the pools they came from rather than external addresses. This incrementally increases liquidity over time through usage without manual claiming needed.
Automatic re-investing helps reduce impermanent loss, boosts liquidity depth, and can increase volume as fees fund further trades. Pools with active trading volume particularly benefit from compounding effects over time.
Withdrawable Earnings
RadixPlanet allows pool creators to configure fee rules with "Withdrawable Earnings" collection methods. This enables liquidity providers to claim fees without reducing their position sizes.
Rather than going directly back into pools, fees sent to Withdrawable Earnings get routed to a separate vault. Liquidity providers can then periodically claim their pro-rata portion of fees based on their share of the pool, without impacting their underlying liquidity.
By retaining principal while accessing returns, providers can compound gains over longer periods. This helps reduce impermanent loss risks from reducing positions after price volatility. Periodic withdrawals also give incremental income without needing to exit positions fully.
Liquidity Mining Rewards
RadixPlanet distributes volume-based liquidity mining rewards using unique NFT voucher tokens. These vouchers - Planet_LM - are minted on every trade and deposited to liquidity providers to later redeem for the native Planet token.
10x Planet_LM vouchers enter pools per trade while 1x goes to the trader. This incentivizes providing liquidity in active pools where rewards accrue more quickly from higher volumes. Periodically, vouchers can be redeemed for Planet tokens, similar to many "staking" mechanisms.
Volume-based rewards promote network effects and compliment liquidity provision where it is most useful. As more activity occurs in a pool, providers earn greater rewards from the increased trades. This aligns incentives across traders and liquidity suppliers.
Protocol Fees
RadixPlanet charges protocol fees on trades to support ongoing development and sustainability of the DEX. These include:
Swap Fees
All pools have a 0.2% swap fee that gets split between the RadixPlanet team and the platform treasury. These small fees on every trade provide revenue to expand features, integrate partners, and improve the trading experience.
Royalty Fees
An additional royalty in XRD is levied based on the protocol version the pool resides on. This aligns incentives for users to upgrade to the latest contracts for better fees and features.
- v1.0.0 pools: $0.02 per trade
- v1.1.0 pools: $0.03 per trade
- v1.1.1 pools: $0.03 per trade
Royalty fees go to the RadixPlanet team and are used to fund ongoing development.
Treasury
The RadixPlanet treasury accumulates fees from protocol charges to fund community initiatives. Governance features will help determine allocation of treasury funds to grow the platform and ecosystem.
Revenue directed to the treasury comes from:
- 0.2% of Swap Fees from all pools
- 100% of Royalty Fees from protocol upgrades
- Any donations from partners/users
The decentralized treasury will allow $PLANET holders to guide budget decisions.
Transactions Manifests
To interact with the RadixPlanet DEX protocol, wallet transactions require specialized manifests to encode instructions properly.
Common manifests used include:
- Create pool
- Add liquidity
- Remove liquidity
- Swap tokens
- Claim fees
- Redeem vouchers
These allow end users to access liquidity pools, supply assets, trade tokens, earn yields, and more.
RadixPlanet provides template transaction manifests for these core functions that developers can use to build customized experiences via alternative frontends. Having ready-made manifests speeds up integration.
For example, the add liquidity manifest encodes details like:
- Pool ID
- Token types & amounts
- Whether to create a new position
- Fee rules acceptance
With template manifests available, developers can focus more on crafting compelling interfaces rather than low-level protocol interactions.
Bitcoin Bridge
RadixPlanet offers a two-way bridge for Bitcoin between the Radix network and other blockchains. This allows users to wrap their BTC for use directly in DeFi applications on Radix.
The Bitcoin bridge locks up native BTC and mints a wrapped token (wBTC) to represent Bitcoin on Radix. The wBTC can then be traded in DEX pools, lent, used as collateral, and more - unlocking Bitcoin to work inside the Radix DeFi ecosystem.
The process can also be reversed by burning wBTC in exchange for unlocking native BTC back to its original blockchain. This provides liquidity for Bitcoin holders to move between networks while accessing Radix-based financial transactions.
Initially, the Bitcoin bridge only supported manual wrapping/unwrapping of BTC with assistance from the RadixPlanet team. Over time, features will expand for direct cross-chain interoperability, starting with public canisters to automate the minting/burning of wrapped tokens.
Native support for major external assets like Bitcoin illustrates the flexibility and hybrid capabilities of the Radix protocol for connecting external blockchains to its DeFi platform.