XOX DEX V2 Revenue Model
Equitable Benefit For All
Last updated
Equitable Benefit For All
Last updated
As a professional DeFi protocol, the primary source of revenue for XOX DEX V2 is derived from trading fees collected on each successful transaction conducted on our platform. Our transparent and competitive fee structure charges a flat 0.1% rate, providing traders with cost-effective access to our advanced cross-chain aggregator. For instance, on a $500M trading volume, XOX Dex V2 would generate approximately $500,000 in revenue, which is then distributed among various key stakeholders. These stakeholders include XOX token stakers, liquidity providers, referrals, buyback and burn, development, and the XOX Labs Treasury. This model ensures equitable benefits for all participants in the XOX ecosystem.
The example below showcases revenue estimates by utilizing varying scenarios to produce an estimated revenue given more optimistic and pessimistic outcomes. The assumptions are as follows:
Revenue is estimated assuming integration with 10 DEX and Aggregators on 5 different chains
XOX DEX V2 captures 1%, 0.5%, 0.1%, or 0.01% of the traffic for each Dex on their respective chains
Platform fee on XOX DEX V2 is fixed at 0.1% of trade value
As you can see, the estimated incomes for each scenario are as follow:
1% market dominance: 7 Days revenue amount if we capture 1% of the traffic is about 176K - (Yearly ~ 9.1m$ / year)
0.5% market dominance: 7 Days revenue amount if we capture 0.5% of the traffic is about 88.4K - (Yearly ~ 4.5m$ /year)
0.1% market dominance: 7 Days revenue amount if we capture 0.1% of the traffic is about 17K - (Yearly ~ 900K$ / year)
0.01% market dominance:7 Days revenue amount if we capture 0.01% of the traffic is about 1.7K - (Yearly ~ 91K$ / year)
The table below summarizes the estimated revenue across 10 DEXs and Aggregators based on the 1% market dominance scenario:
Uniswap
7,100,000.000
71,000,000
71,000
PancakeSwap
1,500,000.000
15,000,000
15,000
Curve
950,000,000
9,500,000
9500
SushiSwap
941,000,000
9,410,000
9410
Dodo
995,000,000
9,950,000
9950
KyberSwap
360,000,000
3,600,000
3600
MetaTdex
300,000,000
3,000,000
3000
Balancer V1
372,000,000
3,720,000
3720
Trader Joe
244,000,000
2,440,000
2440
ShibaSwap
240,000,000
2,400,000
2400
Sum
13,002,000,000
130,020,000
130,000
Based on the 1% market dominance scenario, the revenue will be allocated as follows:
XOX Labs Treasury
50%
65,000
Gasless Fund
20%
26,000
XOX Stakers
10%
13,000
Buy Back & Burn
10%
13,000
Referral Rewards
10%
13,000
In addition to the platform fee, XOX DEX V2 is designed to generate revenue from other alternative sources to ensure the sustainability of the platform as a whole. This includes:
API sharing services: XOX DEX V2 shares its API with other applications and services, allowing integrators to leverage its technology. XOX DEX V2 earns a percentage of the fees generated by these applications and services, providing a passive revenue stream.
Affiliate program fees: XOX DEX V2 offers an affiliate program that enables blockchains and DEXs to integrate with the platform. XOX DEX V2 earns fees from these affiliates, providing an additional revenue stream.
Grants and investments: By integrating with specific DEXs and blockchains, XOX DEX V2 can also participate in their respective grants and investments programs. This provides XOX DEX V2 with funding to continue developing its platform and expand its offerings.
Cross-chain bridges: XOX DEX V2 also earns fees from cross-chain bridges that integrate with its DEX. By providing a bridge between different blockchains, XOX Dex V2 enables traders to access a wider range of liquidity pools, and earns fees from the increased trading volume.
Other protocols: XOX DEX V2 earns small fees from other protocols that use its products, such as its in-built referral system, stablecoin, and stablecoin staking platform. These additional revenue streams contribute to the sustainability of XOX DEX V2's business model.
