The world of decentralized finance (DeFi) has seen tremendous growth over the past few years, with new technologies and platforms emerging to offer users more control, better rewards, and increased liquidity. However, as many projects within the DeFi space are learning, managing liquidity and ensuring efficient market-making are complex tasks that require careful strategic planning. Recently, a pivotal decision has been made by the team behind the SKOOBY and SNACKS tokens: to move all liquidity from Biconomy to Chainge Finance, signaling a major shift in the project’s approach toward liquidity provision and trading.
This decision comes after a series of conversations with the project heads group about various Centralized Exchanges (CEX), the experience with XT, the market-making (MM) model of Biconomy, and the future of Biconomy itself as an exchange. While the team has had a working relationship with Biconomy, the conclusion was reached that continuing to maintain liquidity on this platform was no longer the best option. The team is now focusing on Chainge Finance, a decentralized exchange (DEX) that is better aligned with the future vision for SKOOBY and SNACKS within the Kaspa ecosystem.
Why the Move from Biconomy?
One of the main reasons for transitioning liquidity away from Biconomy is the inefficiency of the market-making model they employ. Biconomy charges a hefty monthly fee of $1,000 for the MM service ($500 for SNACKS, $500 for SKOOBY), a cost that is justified only when there are trades happening. However, for the SKOOBY and SNACKS tokens, there has been a distinct lack of trading volume. This has led to an unfortunate scenario where the team is paying for market-making services without receiving much value in return.
Additionally, the liquidity on Biconomy has already been refilled three times, a clear indicator that the platform is not generating the necessary volume to support the tokens in a meaningful way. As a result, it became apparent that continuing to pump money into an underperforming exchange was no longer a sustainable option.
Enter Chainge Finance: A New Era for DeFi
The move to Chainge Finance marks an exciting new chapter for the project. Chainge Finance is a decentralized exchange that is proving to be a better fit for the long-term goals of the SKOOBY and SNACKS tokens. The platform offers a highly efficient and growing decentralized exchange experience, and the team is confident that Chainge is the best place to provide liquidity for these tokens going forward.
As outlined in a recent communication in the Kaspa Calls (which will be shared here), it is crucial to promote Chainge more actively. The team is keen to emphasize that Chainge is not just any DEX; it is a platform that will be closely integrated with both the Ghost Wallet and the Kaspa market, making it the perfect environment for the community to trade and provide liquidity.
By shifting liquidity to Chainge, the team can ensure that they are not only supporting the project’s long-term growth but also positioning SKOOBY and SNACKS as key tokens in the Kaspa ecosystem. The integration with Kaspa’s infrastructure is expected to enhance the user experience, attract more traders, and contribute to the overall growth of the project.
The Liquidity Incentive: Why You Should Participate
A key part of this transition is the liquidity rewards program that the team is implementing. To encourage users to provide liquidity on Chainge, daily rewards of 400,000 SKOOBY are up for grabs. This is an incredible opportunity for holders of SKOOBY and SNACKS to earn passive rewards while simultaneously supporting the liquidity pool on the Chainge platform.
But the benefits don’t stop there. As more liquidity flows into Chainge, the platform becomes more attractive to traders, leading to more stable prices and less slippage. This, in turn, creates a positive feedback loop: more traders mean more liquidity, which means even better trading conditions, attracting even more users. It is a classic case of “network effects,” where the more people participate, the better the experience becomes for everyone involved.
This incentive structure is designed not only to benefit liquidity providers but also to ensure that the token ecosystem remains stable and thriving. By adding liquidity to the pool, users help maintain price stability and reduce the volatility that can often plague newer tokens.
Addressing Common Concerns: Chainge Is More Than Just a Desktop DEX
One of the common criticisms the team has heard about Chainge Finance is that it is only accessible via desktop. This could limit its appeal, especially for mobile-first users who prefer to trade on the go. However, this perception is misguided. Chainge is fully accessible via the Kroc Bot on Telegram, allowing users to trade directly through their mobile devices.
In fact, the Kroc Bot has proven to be an excellent solution for mobile trading. The interface is incredibly simple, and trades take less than five seconds to complete. This makes Chainge not only an accessible platform for everyone but also a fast and efficient one. For those who are concerned about the desktop-only aspect, it is time to give the Kroc Bot a try and see firsthand how seamless and efficient mobile trading on Chainge can be.
The Kaspa Ecosystem: Building for the Long-Term
The team is also making a strong case for ensuring that liquidity remains within the Kaspa ecosystem. It has been disappointing to see that some KRC20 projects, particularly those with market caps exceeding $10 million, have not done enough to ensure liquidity stays within the ecosystem. These projects have only recently listed on exchanges and are struggling to generate the necessary liquidity to support their growth.
This situation is frustrating because the success of the Kaspa ecosystem relies on the active participation of all its users. If liquidity is constantly drained to centralized exchanges, it undermines the development of Kaspa-based decentralized exchanges like Chainge. To ensure that KRC20 tokens can grow and thrive, the community must work together to keep liquidity on the Kaspa DEX, support projects that are focused on decentralized trading, and encourage the use of platforms like Chainge.
The team has called for action and has urged users to motivate their holders to provide liquidity and actively trade on Chainge. This collective effort will help create a more stable and robust DeFi ecosystem, benefiting all participants in the long run.
Conclusion: The Path Forward
The decision to move liquidity from Biconomy to Chainge Finance represents a strategic pivot toward creating a more efficient, stable, and rewarding DeFi ecosystem for the SKOOBY and SNACKS tokens. With the integration of Chainge Finance into the Kaspa ecosystem, the team is positioning these tokens for long-term growth and sustainability.
By promoting liquidity provision and incentivizing users with daily rewards, the project aims to create a virtuous cycle that benefits everyone involved. As more users join the platform and provide liquidity, the ecosystem will become more stable, attracting even more traders and liquidity providers in the process. This is how decentralized finance should work, everyone working together for the common good of the ecosystem.
The team’s call to action is clear: let’s come together, support Chainge Finance, and build a strong, sustainable future for SKOOBY, SNACKS, and the entire Kaspa ecosystem. Now is the time to act and be part of the movement that will shape the future of decentralized finance.
The liquidity will be moved in the last week of December 2024 !!!!!