AssetX the new Polkadot Asset Hub DEX

Date: 03rd June 2024
Beneficiary Address: 14iULn6TYRmawsxazqR2xwWVuyDXc8ycGjg7ppJ15qVKctEN
Requested allocation: 524,000 USD = 73,327.612660 DOT Subscan’s price converter (EMA 7 Price = 7.146012)
Website: https://asset-x.io/
Telegram: https://t.me/DotAssetX
X: https://x.com/DOTAssetX
Github: https://github.com/AssetXdot
Polkassembly: https://polkadot.polkassembly.io/user/AssetX
Grill: https://grillapp.net/24973?ref=24973
Polkadot Forum: https://forum.polkadot.network/u/steak-king/summary
Discord: https://discord.gg/rhQtprMSMr

Short description: AssetX is a decentralized exchange (DEX) designed for Polkadot users, leveraging the security of the Polkadot network to facilitate token swapping and liquidity pooling on the Common Good Polkadot Asset Hub Relay Chain. AssetX aims to simplify decentralized finance (DeFi) activities within the Polkadot ecosystem, making it more accessible and user-friendly for individuals at all levels of experience in the cryptocurrency space.

Read full proposal here: Full Proposal Doc

Problem Statement: The decentralized finance (DeFi) ecosystem is rapidly growing, surpassing $100 billion in total value locked (TVL) since May 2022. However, there are significant challenges that need to be addressed to onboard new users to Polkadot and improve their experience. Key issues include:

Complexity: Existing solutions within the Polkadot ecosystem can be intimidating for new users due to the technical barriers associated with token creation and swapping. The current tools, such as Polkadot-JS, require a deep understanding of blockchain technology, which can be off-putting for beginners.
User Experience: Polkadot-JS, while functional, is difficult for novice traders to use. Many users have reported that the interface is not intuitive and can be cumbersome for executing simple transactions.
Competition: Other blockchains like Ethereum (Uniswap) and Solana (Raydium) have addressed these user experience issues, setting high standards for usability and convenience. These platforms offer seamless token swaps and liquidity provision, which attracts a large user base. Polkadot needs to catch up by providing a similarly user-friendly experience.

Solution: AssetX addresses these challenges by offering a suite of user-friendly features within the Polkadot ecosystem:

Secure Trading: Users retain full control of their private keys, reducing the risk of hacks or theft. Unlike centralized exchanges (CEXs) where users' funds are held in custody, AssetX ensures that private keys never leave the user's possession, thus enhancing security.
Native Token Swapping and Minting: AssetX allows for seamless token swapping and minting within the Polkadot Asset Hub without needing to cross-chain unless desired. This reduces the complexity and cost associated with cross-chain transactions.
Liquidity Pools: Users can create and participate in liquidity pools, enhancing liquidity and enabling efficient trading. AssetX provides a streamlined interface for users to view existing pools, create new ones, and manage their liquidity contributions.
Yield Farming: Opportunities for users to earn yields through liquidity provision and yield farming strategies. By participating in yield farming, users can earn rewards, incentivizing them to contribute liquidity and engage with the platform.
Global Accessibility: Accessible to any entity with an internet connection, regardless of geographical location. AssetX's decentralized nature ensures that there are no geographical restrictions, allowing global participation.
Reduced Fees: Lower fees compared to centralized exchanges by eliminating intermediaries. AssetX leverages the efficiency of blockchain transactions to minimize costs, providing a cost-effective trading solution.

Proposal Details: The AssetX team is presenting this proposal to the OpenGov Treasury for consideration. The proposal outlines the following key aspects:

Development Timeline: The DEX will be built and ready for use within approximately 14 weeks after receiving the treasury funds. This timeline includes development, testing, and auditing phases to ensure the platform's security and functionality.
Collaborative Expertise: The team and partners bring a high level of management and technical operation skills, ensuring the project's success. The proposal highlights the team's experience in blockchain technology, DeFi, and user interface design.
User-Centric Design: Emphasis on best-in-class UI/UX to attract users from other chains and enhance the overall user experience within the Polkadot ecosystem. The platform will be designed with a focus on ease of use, intuitive navigation, and visual appeal to ensure a positive user experience.
Continuous Innovation: Commitment to ongoing development and feature enhancements based on user feedback and community sentiment. AssetX aims to stay ahead of the competition by continuously improving the platform and adding new features as needed.

Funding Requirements: To execute this proposal and develop the AssetX DEX, the following funding is requested from the OpenGov Treasury:

Total Funding Requested: $524,000 USD in the equivalent value of DOT Tokens at the date of submission.

Development and Testing: $65,000 USD
Security Audits: $58,000 USD
Marketing and Community Engagement: $70,000 USD
Legal Fees: $86,000 USD
Initial Liquidity Provision for DOT/USDT Pool: $150,000 USD
Initial Liquidity Provision for DOT/USDC Pool: $50,000 USD
Polkadot Technical Advisor: $25,000 USD
Graphic & UI/UX Designer: $20,000 USD

The funds will be allocated across these categories to ensure a robust and comprehensive development process, including rigorous security audits, effective marketing strategies, and sufficient liquidity to facilitate seamless trading from the outset.

Tokenomics: The AssetX tokenomics plan features a hard cap of 1 billion ASX tokens with no halving events. Although the issuance of ASX tokens will increase the supply of tokens in the short term, this hard cap will ensure that the DEX will experience net deflation.

Tokenomics

The projected distribution of ASX Tokens is as follows:

Team: 20% of ASX Tokens will be dedicated to the team, successively vested over two years to give confidence to the market.
OpenGov Voters: 5% of ASX Tokens will be reserved for OpenGov voters, with a maximum of 10,000 tokens awarded per user (1 DOT Vote = 1 ASK Token) regardless of voting type (Aye AND Nay).
Liquidity Pool Incentives: 55% of ASX Tokens will be used for additional liquidity pool incentives and to facilitate transaction fees. Liquidity providers will receive their portion of the initial 0.3% yield per trade for providing liquidity to the DEX.
Airdrops: 20% of ASX Tokens will be airdropped to end users who hold sufficient assets on the AssetHub and use the DEX for Swap & Liquidity Pools, with strategies aligned with marketing efforts.
Insurance Fund: 2% of all transaction fees retained by the DEX will be allocated to an insurance fund aimed at compensating users in case of loss or fraud.

Airdrops and Strategy: Upon the proposal's approval, the AssetX team aims to airdrop ASX Tokens to users who hold sufficient assets on the AssetHub & use the DEX for Swap & Liquidity Pools. The first airdrop will consist of approximately 50 million ASX Tokens during the Christmas period, dubbed the '50 Million ASX Christmas Airdrop'. This initial distribution will target users who have interacted with the DEX to build traction and attract total value locked (TVL) from ecosystems within and beyond the Polkadot network.

Deployment Roadmap:

Week 1-4: UI Improvements, Product Management and Coordination
Week 5-8: Frontend/UI Implementation, Backend Functionality Improvements, Polkadot Integrations
Week 9-12: Usability Testing, Post Testing Improvements & Optimizations, QA & Live Environment Testing, Codebase Audit Penetration Test & Bug Repairs
Week 13-14: Early LP Providers Setup, Go Live.

Detailed Benefits:

Enhanced Security: Built on the robust Polkadot network, providing the highest level of security through cryptographic protocols. The decentralized nature of the DEX ensures that users' assets are protected from centralized failures and malicious attacks. By leveraging Polkadot’s relay chain and parachains, AssetX can provide high transaction throughput and resilience.
Increased Privacy: Prioritizes user privacy by not requiring personal information or extensive KYC procedures. This feature is particularly attractive for users who value their anonymity and want to avoid the lengthy and intrusive verification processes common with centralized exchanges.
Transparency: All transactions are recorded on the blockchain, ensuring transparent and tamper-proof data. Users can verify their transactions and track their funds in real-time, fostering trust and accountability.
Liquidity: Hosting liquidity pools and automated market-making (AMM) algorithms to enhance liquidity and efficient trading. By incentivizing liquidity providers, AssetX ensures that there are always enough funds available for trades, reducing slippage and improving the trading experience.
Global Accessibility: The platform is designed to be accessible to anyone with an internet connection, enabling global participation and democratizing access to DeFi. This inclusivity helps to attract a diverse user base and fosters a vibrant community.
Reduced Fees: Lower fees compared to centralized exchanges by eliminating intermediaries. Users can trade assets with minimal transaction costs, making the platform more attractive and competitive.

Proposal Execution Plan:

Development and Testing: The initial development phase will focus on building the core functionalities of the DEX, including token swapping, liquidity pooling, and yield farming. Rigorous testing will be conducted to ensure the platform is secure and performs optimally under various conditions.
Launch and User Onboarding: After development and testing, the DEX will be launched. A user-friendly onboarding process will be implemented to help new users understand and navigate the platform. Educational materials and tutorials will be provided to assist users in getting started.
Marketing and Community Engagement: A comprehensive marketing strategy will be executed to attract users from other blockchain ecosystems. This will include social media campaigns, partnerships with influencers, and participation in blockchain events. Engaging with the community will be a priority to gather feedback and improve the platform continuously.
Feature Expansion and Updates: Post-launch, the team will focus on adding new features and improving existing ones based on user feedback. Regular updates will ensure that the platform remains competitive and meets the evolving needs of its users.
Governance and Sustainability: AssetX will implement decentralized governance mechanisms to allow the community to participate in decision-making processes. This will ensure that the platform evolves in a way that benefits all stakeholders and maintains its decentralized ethos.

Development Teams and Partnerships
AssetX Labs Team: The team at AssetX Labs comprises Polkadot enthusiasts and experienced professionals from various fields including blockchain technology, software development, and marketing.
Key members include:

Steak King:

Founder & CEO, with extensive experience in blockchain projects and a deep understanding of the Polkadot ecosystem. He has served as a Senior Ambassador for Acala and participated in the first Crowdloan launched by Polkadot. His leadership ensures the project's alignment with the core principles of decentralized finance and community engagement.

Pink Beard:

Strategy Manager, bringing over 30 years of diverse experience spanning technology, payments, marketing, and entrepreneurship. With a meticulous focus on navigating heavily regulated industries, Pink Beard has honed expertise in ensuring compliance and operational excellence across all facets of business.

Dnos:
Dnos
Analytics Lead, with a deep understanding of DEX interfaces and a PhD in Economics. Dnos' expertise in Web3 tokenomics and technical analysis, combined with a strong focus on marketing and brand awareness, brings a comprehensive approach to driving growth and maximizing value within AssetX's ecosystem.

JME:

Creative Director, with extensive experience in designing for major corporations and mastering branding and UX/UI. JME's deep exposure to Web3 tech and understanding of DEX user journeys ensures the creation of designs that resonate widely and drive adoption in the evolving DeFi space.

Development Partners

MVP Workshop: A trusted partner with a proven track record of building on Polkadot, including the UI currently deployed on Parity's Asset Conversion Pallet (ACP). MVP Workshop specializes in bringing blockchain products to life, providing tailored guidance from idea validation to full launch. Their expertise in decentralized P2P networks and Web3 consulting services will be instrumental in the development of AssetX.
Velocity Labs: Engaged in early-stage talks for integrating their fiat-to-crypto onramp onto AssetX. This collaboration aims to enhance user experience and accessibility by allowing seamless fiat transactions. Velocity Labs is led by experienced professionals, including former Parity team members, who are dedicated to developing the necessary infrastructure for a thriving DeFi ecosystem on Polkadot.

Auditors

OpenZeppelin: A world leader in securing blockchain applications and smart contracts. OpenZeppelin will provide a comprehensive codebase audit to ensure the security and reliability of AssetX. Their open-source contract libraries are a gold standard in the blockchain community, providing reusable and secure code.

CertiK: Specializing in penetration testing, CertiK will conduct rigorous security evaluations to identify and address vulnerabilities. Their advanced tools and methodologies ensure a realistic assessment of our security posture, enhancing trust and confidence in the platform.

Long-Term Vision: AssetX aims to become the leading DEX within the Polkadot ecosystem, providing a seamless and secure trading experience for users worldwide. The platform's long-term goals include:

Interoperability: Enhancing cross-chain functionality to allow users to trade assets across different blockchains seamlessly. This will involve integrating with other popular DeFi platforms and expanding the range of supported assets.
Scalability: Continuously improving the platform's scalability to handle an increasing number of users and transactions without compromising performance. This will involve leveraging Polkadot's scalable infrastructure and exploring new technologies.
Innovation: Staying at the forefront of DeFi innovation by exploring new financial products and services. This could include advanced trading features, lending and borrowing services, and more sophisticated yield farming strategies.
Community Growth: Building a strong and engaged community that actively participates in the platform's development and governance. By fostering a collaborative environment, AssetX aims to create a thriving ecosystem that benefits all participants.
Sustainability: Ensuring the platform's long-term sustainability by implementing effective economic models and governance structures. This includes creating a self-sustaining treasury to fund future developments and community initiatives.

AssetX is positioned to be a pivotal innovation within the Polkadot ecosystem, addressing current gaps and enhancing the token creation and swapping experience. By focusing on user-friendly interfaces and comprehensive DeFi functionalities, AssetX aims to drive the growth and adoption of decentralized finance on Polkadot. This proposal seeks the support of the OpenGov Treasury to realize this vision and make AssetX a cornerstone of the Polkadot DeFi landscape.

For more detailed information and to support our proposal, please visit our website and review the complete documentation provided or email us at: [email protected]