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How to Achieve Capital Allocation in L7 DEX in the New DeFi Age

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How to Achieve Capital Allocation in L7 DEX in the New DeFi Age

September 06
12:21 2023

The emergence of DeFi has changed the existing financial rules and restrictions. From a macro narrative perspective, in ancient civilizations,asset exchange was mainly based on bartering; in agrarian civilizations, the emergence of iron tools drove the development of rural capital; in the industrial age, the rapid rise of machines laid the foundation for urban economies; in the information age, the proliferation of the internet brought about global capital circulation. Each advancement in productivity determines the efficiency of capital allocation in that era. As a cutting-edge productive force, blockchain naturally brings another leap in financial efficiency.

In this article, we will take L7 DEX as an example to analyze how decentralized finance (DeFi) breaks through physical limitations and achieves efficient capital allocation in the cross-temporal field. At the same time, we will explore how L7 DEX provides more reasonable asset allocation solutions for the market. As a decentralized perpetual contract trading platform, L7 DEX will present its own answers from the following aspects.

Alpha Stage – Global Community

Most users have a weak understanding and participation in the DeFi projects on the market. This is mainly because they haven’t actually been involved in the project’s development and benefits sharing . To address this issue, L7 DEX initiated its strategy by building a global community,set up a community admission and benefit-sharing mechanism that is centered around NFTs and an economic model.Meanwhile, with an efficient viral mechanism, truly achieve  a simultaneous increase in both existing community users number and new users.

For Community Users,owning NFTs is like directly participating in project development. On one hand, users can earn stable and substantial long-term income by staking NFTs. This will be the first asset allocation method provided by L7 DEX to its users. At the same time, NFT holders will also receive L7 DEX’s platform token, LSD, earlier than others. This makes them indirect early investors in the project, allowing them to enjoy significant dividends at various stages of project development. Moreover, these users also determine the direction of community and product development in each vote.

NFTs as core elements, NFTs will also play a huge role in product functionality. After the contract trading goes live, NFT holders will directly enjoy the benefits of reduced transaction fees. During the liquidity building phase, NFT holders will also receive liquidity rewards based on the NFTs they hold.

Current stage,L7 DEX has established communities in 40+ countries and regions worldwide. A massive decentralized autonomous organization (DAO) community is being built, where community members are not just mere numbers, but true project builders and benefit sharers. Through the co-construction& co-sharing DAO model, L7DEX has truly achieved the first goal of all members together building a reservoir and promoting platform and sharing profit.

Middle Stage – Launch Product

As a decentralized perpetual contract exchange, product development is always  very important. The innovative “PvP AMM” mechanism, combined with optimized smart contracts, provides users with a smooth contract interaction experience while avoiding issues such as price volatility, market manipulation, poor liquidity, and inability to place orders. This makes contract interaction safer and more stable, reducing the possibility of user losses. The introduction of the “PvP AMM” mechanism shifts users’ opponents from the project party or giants to other real users on a “peer-to-peer” basis, eliminating the possibility of unfair gaming and bringing trading and investment back to purity.

A large amount of transaction fees generated from spot and contract trading in this stage will be distributed to market users through node allocation, liquidity incentives, token buyback and burn, and community incentives. Users who prefer stable investments can become nodes and enjoy significant profits from each transaction fee. At the same time, holding spot assets will also benefit from the platform continuously buying back and burning LSD, resulting in a very decent development profit。

Important Expansion – Liquidity + IEO

Asset management and allocation in the real world are usually complex , making it difficult for non-professionals to find truly valuable investment targets among the well-developed and heavily packaged financial products. With the emergence of blockchain, DeFi has provided investors with new perspectives of investment by returning to the essence.

To address this issue, L7 DEX will build a more pure and efficient investment solution for the market through liquidity + IEO strategy. Different Users participate in the construction of the core part of the platform through liquidity building, providing the platform with a continuous source of vitality. At the same time, the staking liquidity also brings more income to the users, becoming another important measure for the platform to further develop and strengthen in the future ,and help users to better allocate their assets.

After the IEO launch, L7 DEX plans to collaborate and invest with 500-1000 high-quality Web3 projects. By connecting and integrating with the platform token LSD, users and these projects will eventually form an asset management and allocation system centered around LSD and other platform assets. This system will completely break down the barriers for ordinary users to participate in the primary market. Leveraging the efficient integration of assets and profit recovery through LSD, it aims to maximize the benefits of DeFi in cross-temporal asset allocation;effectiveness of assets and mining power.empowering Web3 with more possibilities and turning the empowerment of DeFi on Web3 into a reality.

Interlocking and Contradictory Unity

To achieve efficient circulation and redistribution of capital through DeFi is not something that can be done overnight. Empowering the development of Web3 through DeFi’s asset management and configuration properties is also not something that a few projects can accomplish. However, this is always a hopeful and feasible path. L7 DEX, through the interlocking mechanisms of the three stages,breaks through the financial barriers of the real world. To some point, it achieves the integration of speculation and investment, allowing naturally opposing positions to play to their strengths and ultimately achieve new growth.

In the new cycle of bullish and bearish markets, a more comprehensive platform and smoother opportunities for participation will become the top choices for users. L7 DEX represents a valuable venture, leveraging DeFi protocols to efficiently allocate capital and foster the growth of Web3. While risks and opportunities continue to coexist for users, a crypto-economic market backed by strong fundamentals and enriched by high-quality projects has emerged. As the saying goes, “big waves sift the sand,” and both DeFi and Web3  will embrace a brighter future.

Website: https://www.l7dex.finance/

Twitter: https://twitter.com/L7_DEX

Telegram: https://t.me/L7DEX_Official

Discord: https://discord.gg/l7dex

Media Contact
Company Name: L7 Labs
Contact Person: Lucas
Email: Send Email
Country: United Arab Emirates
Website: www.l7dex.finance

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