MetalSwap Enhances XMT Token Liquidity Management, to improve Bridge Security and unlock Interchain Messaging
The DeFi space is continuously evolving, and MetalSwap is at the forefront of this innovation by enhancing its liquidity management and interoperability features.
Today, we're diving headfirst into the depths of how MetalSwap plans to streamline the liquidity of the XMT Token by migrating it from a dusty corner on Polygon's Uniswap V3 to a bustling pool that lets Celer bridge XMT across multiple blockchains. This easy-to-follow and lighthearted guide will give you a front-row seat to MetalSwap's master plan and all the thrilling features it has in store for its community.
Remember that previous article where we chatted about how introducing alternative bridging mechanisms could amp up security? Well, the team has cooked up a fascinating solution with Celer that involves using liquidity pools for bridging. To make it work, we'll need a good amount of XMT on both the Polygon network and the BSC. We could have opted for bridging them with multichain, but we discovered that in Polygon's UniV3, there's a boatload of XMT just sitting around twiddling its virtual thumbs. These tokens aren't needed for exchange; they'll only be required when XMT and USDC are swapped at a 1:3 ratio. At that point, the XMT liquidity can jump back into the fray.
Now, XMT is a governance token, and if it doesn't have a solid reason to be on a chain other than ETH, it might as well head back to ETH where it can flex its utility muscles and minimize exposure to risk.
So, as we'll explore later, most of the XMT without a reason to stay elsewhere, will be making a triumphant return to its ETH homeland.
Visualizing Liquidity Changes
To help you better understand the changes in liquidity, we will include two images in the article. The first image will show the current "in-range" liquidity on the Polygon Chain's USDC/XMT 1% Pool, highlighting the active liquidity that will remain on the platform. This visualization will provide clarity on the XMT tokens that continue to support MetalSwap's users on the Polygon network.
Source: https://info.uniswap.org/#/polygon/pools/0xf7abb7dee889da4300a82c26f8c0c725c64bd493
The second image will offer a broader view, showcasing not only the in-range liquidity but also the "out-of-range" liquidity on the right of the chart, that the DeFi Foundation plans to move in little part, because it’s useless liquidity in terms of exchange utility. It would return in-range when the ratio of XMT/USDC will be 1 to X, when X is greater than 3 (3 USDC for 1XMT).
This comprehensive graphic from Polygon’s UniV3 will give you a clearer perspective on the out-of-range liquidity parked and the no-impact it will have to take part of it for better reasons than just stay there.
Source: https://info.uniswap.org/#/polygon/pools/0xf7abb7dee889da4300a82c26f8c0c725c64bd493
Liquidity Migration Plan
MetalSwap has devised an efficient plan to optimize the liquidity of the XMT Token. Here's a step-by-step breakdown of the process:
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Removing part of XMT Liquidity from Polygon's UniswapV3: 14.39 Million $XMT will be removed from the out-of-range liquidity pool on Uniswap V3. This removal is essential for the evolution of bridge security and a crucial step towards enhancing the DeFi ecosystem.
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Remaining XMT Tokens on Polygon Chain: 3 M $XMT will remain on the Polygon chain, maintaining liquidity and providing stability for MetalSwap's users.
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Migrating XMT to BNB Chain: 3 M XMT will be migrated to the Binance Smart Chain (BNB), expanding the token's reach and enhancing cross-chain interoperability.
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Bridging XMT to Ethereum: 8.39 M XMT will be bridged to the Ethereum blockchain. This move focuses on governance, utility, and security, enriching the token's functionality and accessibility for the DeFi community. In this manner, the DeFi Foundation is giving the best “good example” of Governance Token Management, draining XMT from no-more useful places to its best environment: ETH.
Interchain Messaging and the Future of MetalSwap
The migration of XMT Token liquidity paves the way for "Interchain Messaging," a groundbreaking feature that allows other blockchains to communicate with each other, such as the Ethereum MainChain. This will enable MetalSwap to unlock a plethora of exciting features, which will be discussed in the platform's DAO in the future.
This enhanced cross-chain communication serves as a catalyst for the growth and adoption of DeFi projects, opening up new possibilities for users and developers. The future of MetalSwap looks bright, as it continues to push the boundaries of DeFi technology and bring innovative solutions to the market.
Conclusion
MetalSwap's forward-thinking strategy in managing XMT Token liquidity, coupled with its dedication to enhancing the security of XMT bridging, is bound to skyrocket the platform to stardom in the DeFi universe. By shuttling XMT tokens through Celer C bridge, we're not only boosting its governance and utility, but also fortifying its security, making it even more user-friendly and versatile.
As MetalSwap continues to push the envelope, buckle up for an exciting journey full of new DeFi features and innovations. Keep your eyes peeled for further updates, and let's join forces with the MetalSwap community as we embark on this great adventure together.
To learn more about MetalSwap and how to use it, check out this article ;)
To the MetalSwap
… and beyond!
⚠️Warning⚠️
❗ METALSWAP ‘s admins or moderators will NEVER contact you directly on any social under any kind of circumstances.
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Goodbye volatility!
-The DeFi Foundation
✎ What is MetalSwap?
With MetalSwap we enable hedging swap transactions through the use of Smart Contracts, AMM style.