SheepDex, the first concentrated liquidity DEX that integrates spots and derivatives on the Binance Smart Chain (BSC), was officially launched on Oct. 10, 2021. Though SheepDex has only been online for a short period, it was recognized as one of the promising projects within the BSC ecosystem by developing multiple innovative functions and providing users triple incentives.
The next-generation DEX
Armed with some cutting-edge features that are not yet available on other DEXs in the BSC ecosystem such as the range order and multiple fee tiers, SheepDex’s V3 AMM mechanism sets it apart from the competition.
On SheepDex, liquidity providers (LPs) can select their own desired price ranges that they’d like to provide liquidities, which leads to a better depth and lower slippage for traders. It also introduced a diversified reward system with triple incentives available at the same time: yield farming, fee refunds for LPs and transaction rewards for traders.
Besides, SheepDex makes it possible for LPs to provide liquidity of a single token. Together with multiple fee tiers of 0.1%, 0.2% and 0.5%, LPs now have a greater flexibility and more strategies of market-making.
Radiant performance after launch
The first batch of supported pools on SheepDex includes BNB/BUSD, BNB/BTC, BNB/ETH, BUSD/BTC, BUSD/ETH, ETH/BTC, BUSD/USDC, BUSD/USDT, and BNB/SPC.
At the time of writing, the average fee APRs of many pools are attractive enough. For example, the fee APR of BNB/BUSD is as high as 1,000%.
Many LPs prefer pairs of stablecoins, as the price fluctuations are often very small, and impermanence losses can be negligible. On most platforms, returns of stablecoins are often low, and LPs need to make a trade-off between rates of return and risk.
However, SheepDex offers high-yield for low-risk. From the official website, the APR of USDT/BUSD is currently 30.43%, and the APR of USDC/BUSD is 29.10%. Besides, it is just the APR of fee refund and yield farming earning hasn’t been included.
From the above, we can see that LPs could get better returns on SheepDex than on other protocols, and those are only average APRs. If you have better strategies, the APR of your position will be much higher.
Small Slippage and low transaction fee
Through actual operations, SheepDex also proved that it is indeed a more advantageous platform. Let’s take USDT/BUSD as an example. When we trade 800,000 USDT to BUSD on SheepDex, the slippage is only 0.17%, and the fee is 1,600 USDT. If we also trade the same amount on PancakSwap, the slippage is 0.57% and the fee is 2,000 USDT.
SheepDex has a much smaller slippage and a lower fee than PancakeSwap. However, the TVL of USDT/BUSD on PancakeSwap is 270 million, while the TVL of USDT/BUSD on SheepDex is 2.34 million. This well proves that the concentrated liquidity brought by SheepDex does have unparalleled advantages.
What’s more, SheepDex also offers transaction rewards, which makes the transaction more cost-effective.
All those innovations give SheepDex great vitality. It may not only change the development direction of DEX but may also change the landscape of DeFi.
SheepDex is the first concentrated liquidity DEX, which integrates spot and derivative trading in the Binance Smart Chain (BSC) ecosystem. It helps liquidity providers (LPs) and traders to maximize capital efficiency and earnings by introducing several innovative features that are not yet available on other DEXs in the BSC ecosystem，such as concentrated liquidity, multiple tiers of fees, range orders and triple incentives.
Join SheepDex’s community to learn more:
Website: https://SheepDex .org