Beamex PERPadot: Liquidity Incentives program to attract liquidity and onboard new users to the Polkadot ecosystem via Perpetual Trading

This post serves for discussion, comments and suggestions from Polkadot OpenGovernance for the upcoming Treasury proposal from Beamswap Team.

Proponent Address: 15zT5nrMkpK4NdQRCHdpMvLCaU4Mt2ekVP9hXkPzcMwPNEw2

Requested Amount: 500,000 $DOT for 1 year

Short Description: Liquidity incentive program to attract liquidity and onboard new users to the Polkadot ecosystem by giving them significant liquidity depth for Perpetual trading

Summary

At Beamswap, we acknowledge many significant steps made across the whole Polkadot ecosystem before the Polkadot 2.0 launch. With new interest and new players coming in and committing to the Polkadot ecosystem, users should also enjoy a well-positioned on-chain option for perpetual $DOT trading. The Beamex PERPadot campaign aims to do just that - to create a seamless native decentralized perpetual trading experience.

Beamex is the only and most used platform offering long/short decentralized trading options, limit orders, and swaps without any price impact. This is made possible by price oracles, which draw data from on-chain price feeds and centralized exchanges.

• Primary Goal: Onboarding of new traders to Polkadot
• Project Description: Beamex is the only perpetual exchange on Polkadot, specifically on the Moonbeam Network. As a decentralized spot and perpetual exchange, Beamex delivers advanced crypto trading, both swaps and leverage trades, at low fees and zero price impact, via direct wallet connectivity.
• Requested DOT Grant Amount: 500,000 $DOT
• Use of Grant: 475,000 $DOT would be used to increase market liquidity for Beamex, and 25,000 $DOT would be reserved for trading competitions, marketing efforts and offline events.
• Motivation: Aligned with our vision of becoming a fully user-powered perpetual exchange, the funding of Beamex would significantly contribute to acquiring new users in the Polkadot ecosystem. This would further elevate its standing compared to other networks and projects, such as dYdX on Ethereum, GMX on Arbitrum, and Jupiter on Solana.

If approved, the 475,000 $DOT would be allocated as rewards for BLP liquidity providers over one year. We would reserve 25,000 $DOT (5%), for trading competitions, marketing efforts and offline events. This request runs in parallel with the $DOT LP request, which aims to seed 500,000 $DOT towards the base liquidity of the BLP pool, enabling users to open significant leverage positions on Polkadot.

A secondary goal of the proposal is to create a significant influx of liquidity providers in the Polkadot ecosystem. Offering rewards to liquidity providers has already been proven effective on Beamex with the Moonbeam Grant program. The LM incentives would also lead to increased platform use, which would generate more fees and consequently increase the APY and rewards, making the platform self-sustainable. The growth in transaction numbers, users, 24-hour trading volume, and BLP supply would follow organically.

Please read the full proposal here.

This proposal will run in prallel with Beamex PERPadot: DOT LP Depth , which aim is to create a significant $DOT liquidity depth on Beamex by allocating 500,000 $DOT into Beamex Liquidity Pool (BLP), allowing users to open larger leverage positions natively on Polkadot.