Dystopia

Dystopia

A reimagined, community oriented ve(3,3) dex on Polygon.

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Dystopia Introduction

Dystopia is a new decentralized exchange coming to Polygon, based on Uniswap v2 and Curve Stable Swaps. With improved incentive mechanisms for liquidity providers and stakers, Dystopia will be the most efficient protocol for swapping between stable coins and closely correlated assets. As mentioned before, Dystopia is a decentralized exchange (dex), which is a type of protocol that allows for automated trading between two (or more) types of assets. As a dex, Dystopia will facilitate swaps between stable coins and closely correlated assets, such as swaps between USDC-USDT or wMATIC-stMATIC for example. Focusing on closely correlated assets with a 0.05% trading fee allows for Dystopia users to cheaply execute very large or small trades without experiencing high slippage. Slippage is the difference between the expected price of an order and the price when the order actually executes. High slippage occurs when there are low levels of liquidity in liquidity pools. Similar to curve, Dystopia will allow for low slippage trades but with an improved governance structure.There are two main stakeholders involved in a decentralized exchange: the liquidity providers, and the native governance token holders. Liquidity providers need to be incentivized in order for the protocol to have the deep liquidity that allows for low slippage trades, and governance token holders need to be incentivized in order for the token to be valuable.