FAQ
Q1: What is Sheepdex?
SheepDex (sheepdex.org), which launched on BSC on Oct. 10, is a decentralized liquidity concentrated platform for spot and derivatives trading. It offers Yield Farming and Transaction Rewards while allowing liquidity providers (LPs) to allocate funds within specific price ranges and provide them with transaction fee refunds if a swap occurs within that range. This greatly improves capital efficiency and provides users with better liquidity and ultra-low trading slippage. According to the roadmap, it will continue to launch perpetuated contracts, leveraged tokens, and other derivatives. SheepDex aims to be a decentralized Binance.
Q2: Is SheepDex open-source auditing?
Yes, SheepDex always focuses on efficiency and security. The smart contract is open-source and the code has been audited by CertiK and PeckShield. More audit firms will be involved to ensure the security of the contract.
Audit report by CerTik: www.certik.org/sheepdex
Audit report by PeckShield: to be released.
Github：https://github.com/SheepDex/contract
Q3: What are the advantages of SheepDex compared to other DEXs?
Less slippage: Liquidity is concentrated in the price range where most transactions occur, resulting in less slippage and fewer losses, especially for stablecoin pools.
Transaction rewards: Each transaction is charged with a fee of 0.2% as other exchanges on BSC, however, with SheepDex users can earn more rewards from each transaction they make.
Transaction fee refund for LPs: LPs can earn transaction fee refunds by adding liquidity in the range where transactions occur, and they can earn more if there are more transactions in that range. This fee income is particularly pronounced on base currency pair BNB/BUSD, which typically offers an APR of more than 200%.
Yield Farming can be combined freely with a variety of trading strategies: SheepDex allows LPs to convert multiple liquidity provision portfolios under changing market conditions in order to obtain more profits.
For example, when currency prices are volatile, conservative users can choose to adjust the range to minimize the impermanent loss. But even then, you will still get a better return than a traditional order.
Market-making can be done with just one currency, which helps users automatically buy in or sell their tokens.
5. Higher overall return: SheepDex offers triple incentive, multiple income and higher APRs. The APR for stablesoin pools, for example, are often higher than 50%, which is hard to see on other protocols.
6. SheepDex is built on BSC, which means smoother speed and lower gas fees. So in general it cuts the cost of switching positions, so users may adjust their positions according to token price.
Q4: What is the triple incentive? Do you mean SheepDex is offering more rewards than other DEXs?
SheepDex provides users with more incentive and portfolio management strategies than other DEXs. Users can choose to be more aggressive or conservative according to their preferences.
1. Transaction Fee Refunds: LPs can get transaction fee refunds if transactions occur in the range they set. Take BUSD/BNB pool, a routing pair or base currency pair, as an example, LPs can earn the fees in the form of BUSD or BNB. The value for this specific pool is higher than other trading pairs because of its higher trading volume.
2. Transaction Rewards: Each swap will charge a fee of 0.2%, and users can get SPC reward after completing the swap, which greatly reduces their costs and stimulates the trading volume.
3. Yield Farming: LPs can obtain SPC tokens by depositing specified token assets as required to provide liquidity to the liquidity pools. Currently, SheepDex actually offers higher yields than other DEXs.
While 99% of users currently opt for the pools with a 0.2% fee tier, you can also choose those with 0.1% or 0.5%. But currently, only pools with a 0.2% fee offer transaction rewards, and perhaps there will be some adjustments to this in the next. In general, 0.1% fee pools are best for stablecoin pairs and 0.5% fee pools are best for exotic pairs.
Q5: What are the benefits of concentrated liquidity by SheepDex?
Liquidity in the financial and investment sectors can usually be explained as Liquidity is actually the ability of investors to rapidly trade a certain number of assets at a reasonable price according to the basic supply and demand of the market.
Liquidity can:
enhance the flexibility and liquidity
reduce the transaction costs
improve the competitiveness of suppliers in the markets
get the best prices for the investors
improve the competitiveness of suppliers in the market
Q6: What is the future of SheepDex?
SheepDex aims to be a decentralized Binance. You can trade on SheepDex as quickly and easily as you can on a centralized exchange (CEX). You will be able to trade with less friction or slippage while experiencing the most liquid derivatives. SheepDex also offers the experience of security and privacy as a decentralized exchange (DEX) can offer. In the future, SheepDex will be one of the largest derivatives platforms in the Blockchain industry. You will also be able to do bulk trades and forex on SheepDex. We believe that, in the future, SheepDex will become a Blockchain-based financial clearing and settlement center.
Q7: As we know SheepDex is not easy for beginners, how do we learn to use it?
SheepDex offers the V3 Range Order system for market-making, which can be difficult for traditional AMM users. But that’s the beauty of evolution every time in the industry. You can join our telegram community (https://t.me/SheepDex) to learn about the theories, practices, and LP strategies, or refer to the tutorial on the documentation page on our website. There is a lot to explore on SheepDex.
Learn more:
TG: https://t.me/SheepDex
Twitter: https://twitter.com/SheepDex
Tutorial: https://sheepdex.gitbook.io/sheepdex/
Q8: What is the status of the project? Is there any progress?
It’s been less than three months since we announced the project, but the technical team has been preparing it for over a year. So far, SheepDex has attracted users in more than 20 countries. It now has over 100,000 followers and members from 60 communities around the world. SheepDex is currently getting a lot of attention from leading international investors, many of whom have been working closely with us. And we will be releasing investor information on Twitter in due course, which is bound to be exciting. As v3 is a new product, many investors and users are also testing it on SheepDex. As you can see, SheepDex is gaining more and more traction from DeFi enthusiasts. This also provides more time and space for arbitrage.
Q9: What is the Tokenomics of SheepDex?
Total supply: 90 million
Block time: 3 seconds
Emission: 3.5 SPC / block
Deflation: reduced by 20% every 90 days
Token allocation: Yield Farming 25% Transaction Rewards 25% Derivatives 20% Team 8% Marketing 5% Branding 3% Airdrop 2% DAO 2% Investor 10%
Q10: SPC contract: 0xc67a54d5e08e59fb70dd29d81350c6ff4562d544
The liquidity of SPC is only available on the official website.
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