Key Point #1
Last updated
Last updated
The most effective way to generate volume on a new (usually small liquidity) FXPool is to;
Create an FXPool with your target liquidity (let's say 100k USD TVL in this example)
Create a non FXPool and pair against a volatile asset (let's say 50k USD TVL in this example), usually the native gas token of that network (such as ETH for Ethereum Mainnet and AVAX for Avalanche)
One prime example of this working is StraitsX's Polygon XSGD:USDC FXPool where the following liquidity pools exist ;
FXPool
(this FXPool has been migrated from the old version using bridged USDC )
External Pool (that serves as external rebalancing liquidity for arbitrage)
(this has been migrated to native USDC from the old bridged USDC pool found )
Another example is VNX's Avalanche FXPools for VEUR and VCHF where the following liquidity pools exist;
FXPools
(click to see FXPool on Xave UI)
(click to see FXPool on Xave UI)
External Pool (that serves as external rebalancing liquidity for arbitrage)
(click to see weighted pool on Balancer)
These FXPools achieved ~$1.5M in volume during their first month live on less than $200k TVL each due to the external pool that helped kick off volumes.
See Dune page of VCHF:USDC FXPool:
See Dune page of VEUR:USDC FXPool: