ECO token is a very high ranking. What about
ECO is a cryptocurrency that boasts independent monetary policy. The Eco team has designed it to support its growing platform. The company aims to offer customers better economic data, as well as a more transparent incentive structure for governance. The ECO token holders will enjoy many exciting benefits. The token is already very highly ranked on various ICO listing platforms.
According to the team, Eco is essentially a governance framework and a monetary policy toolkit. The company designed this currency for transactional usage. It will have a variable supply. The team also created a monetary policy to govern the token. The project also has another token – ECOx. The latter aims to bootstrap both system governance and capital allocation. However, it has a capped supply. The token’s number will decrease over time.
In this early research phase, the team played with various possibilities for ECO tokens. But it eventually created a good governance system and a strong network. It now wants to encourage the token’s adoption and to consider ECO’s popularity, is doing that quite well. The company decided to launch the ICO sale in November 2022. ECO is an ERC20 coin, and its total supply is 10,000,000,000.
Moreover, the team created 1 billion units of ECOx, but customers will be able to convert each unit into ECO at any time. They can accomplish that at an inflation-protected rate, which is an additional boon. The ECOx token holders will also benefit from staking the tokens, as they can get transaction fees in ECO. They should consider, though, that the conversion only works one way, and it’s irreversible.
How can token holders use ECO?
ECO is a governance token. However, the team pointed out that there are two major governance processes in Eco: monetary governance and community governance. The latter starts with token holders’ voting. Both ECO and ECOx owners will be able to participate in making decisions for the project’s future development. In fact, they will control the whole Eco protocol. The company developed the system in such a way that it will be easily upgradeable. This platform will continue evolving and offer users more exciting features over time.
Furthermore, investors will be able to change any parameter or process in the system, including technical, fiscal, and economic developments, by voting. However, at least 15% of all community members should support a proposal to send it for a vote. After that, the majority of votes will decide the fate of the proposal.
Meanwhile, an elected group of “Trustees” will conduct the Monetary governance on a periodic schedule. Initially, the company will hold these sessions every two weeks. Trustees should maximize the aggregate wealth held in Eco. The token’s success is their success. Eco Trustees serve specific terms, but the community may remove them via voting at any time. They can also decide to re-elect some Trustees at the end of their term.
AshSwap is another trending project. What does it offer?
AshSwap is a decentralized AMM. This project follows the stable-swap model. Built on the Elrond Blockchain, the latter has many advantages. The company uses Curve Finance’s formulas. However, it also introduced some new concepts to improve customers’ experience, as well as increase capital efficiency. The team aims to create a more robust token model.
The company launched its native utility token on October 12, 2022. Its sale ends on October 25, 2022. The price of 1 ASH is 0.04 USD, but its value will likely increase after the initial coin offering ends. The team aims to raise $2,800,000 with the sale. The total supply of tokens is 1,000,000,000, but only 17% is available for purchase at this stage.
Moreover, AshSwap has created veASH, or vote-escrow ASH, which is essentially a concept of Curve. The platform currently has yet to have a voting mechanism, but the team plans to create it soon. This project has interesting insights. For instance, most companies try to avoid their token’s sell-off. They prefer to ensure that investors hold the coins. To this end, the projects usually either lock tokens or direct customers to staking.
However, that means the project has to take part of the token supply out of circulation and, consequently, reduce sell pressure. On the other hand, the staking use case often creates an inflation problem. AshSwap considered these problems and decided to create a more sustainable incentivization mechanism.
The company will divide the collected fees into two parts. The LP token holders will receive 50%, while the other half will be set aside for veASH holders. Such an arrangement will encourage investors to stake the governance token and earn parts of the revenue of the protocol.
What about Liquid Liquidity Provision?
The AshSwap team introduced Liquid Liquidity Provision shortly LLP. This is a new concept that offers users to exchange their liquidity instead of giving it up. Besides, the ASH token will have more utility thanks to LLP. While it may sound a bit confusing, in reality, this concept is very simple. One of the most well-known and useful forms of stablecoins is a crypto-back stablecoin. However, there are also DAI (MakerDAO) and MIM (Abracadabra.money).
In both cases, the underlying collateral is speculative assets. Thus, liquidation is a prerequisite in those protocols. When the underlying assets’ price reaches a certain level, liquidators will step in and liquidate the position. They may also burn some of the stablecoins. For example, in January 2022, a crypto crash prompted investors to liquidate 600 million on MakerDAO. That caused the price of ETH to plunge by a few hundred dollars in several hours as traders sold all of the collateral on the open market. In some cases, the liquidation fails to work if the price drops too low and too rapidly.
The AshSwap team is working hard to avoid such a fate. It researches both historical precedents and solutions to ensure that its token maintains its high value. According to the company, LP tokens of stable-swap exchanges stand out due to their unique characteristic – the collateral’s underlying value does not change drastically. AshSwap leverages this advantage and enables customers to mint a new type of stablecoins, AOC, by using their LP tokens as collateral.