
Daniel Catini .plena
2.6K posts

Daniel Catini .plena
@danielcatini
Tecnologia, Futebol e desenvolvimento de sistemas.























Thinking back to 2023 when we developed the first version of our marketplace, we were considering integrating fungible and non-fungible in-game items as ERC-20 tokens, making them a part of the x*y=k model. Greater liquidity is naturally correlated with a larger player base, and LP was always going to be a core challenge. Incentivizing liquidity would inevitably be one of the key reward mechanisms — many protocols are designed around liquidity incentives, which makes perfect sense, especially in high-momentum phases. If we think of the crypto game as a black box, some games take $(say USDT) as input and output the in-game token, while others allow both $ and the game token as inputs. In many cases, the game itself is essentially a wealth redistribution process. Combined with secondary market market-making, this process may stay a certain equilibrium over time. In this dynamic system, losses may fall on secondary market participants or within the in-game redistribution cycle. Our approach, fundamentally, is to expand liquidity, enabling broader participation and making trading and competition more organic. This time, we are leveraging an interesting but often overlooked feature of AMMs — the power of 2√(k*P), where P = y/x. LPs function as both debt and collateral at the same time — counterintuitive, but it works perfectly. With this, all players and users will have access to a richer set of trading tools (come on, we’re in crypto, man), rather than being constrained by excessive limitations that prevent them from executing their strategies. How about 10x longing energy potions or shorting some equipment? Anything is possible with the #Defi power BTW, this will be a universal mechanism💡