The Asset Driving Liquidity on OpenDEX

We believe a token can add value to a network, if it incentivizes participants to do something useful for the network itself. For instance, requiring fee payment with a specific token adds an additional entry barrier for participants, which we don't consider to be very useful. XUC instead is designed to incentivize market makers to provide the most crucial element on OpenDEX: liquidity. The OpenDEX network and xud software are entirely token-free and do not require holding or using any particular token.

Market Makers which decide to hold XUC, receive a XUC token subsidy for providing liquidity on the OpenDEX network in its early stages. This incentivizes market makers to run xud nodes and lock capital to provide liquidity on the network, even when trading activity is still low. This is an essential incentive that helps to bootstrap the supply side of the OpenDEX market place. It can be somewhat compared to the bitcoin block subsidy which rewards miners for securing the network, when transaction fees are not high enough to amortize costs yet. This is, once more similar to bitcoin, how XUC is distributed: to the partipants that help the system to grow the most. In future, XUC will unlock optional services improving trading reliability.

We believe a well-designed incentive system is vital to the success of a market place that faces the typical chicken egg problem of growing supply and demand at the same time. XUC helps the supply side to grow first by subsidizing market makers.

The role of XUC.

XUC incentivizes liquidity on OpenDEX.

  • Market Makers
    Market makers are rewarded with a XUC subsidy for providing liquidity and helping to bootstrap the network in its early stages.
  • Exchanges
    Exchanges will be able to use XUC to access an ever-updated, curated list of reliable market makers. This list is curated with considerable effort by curators, evaluating market makers based on uptime and swap reliability.
  • Developers
    Developers contributing to xud on an open-source base, will be rewarded with XUC. Bug bounty rewards are used to incentivize independent security researchers & hackers to verify the security of XUD's codebase.
The history of XUC.

A lot has changed at Exchange Union since project inception in the middle of the ICO boom in 2017. We pivoted from "Connecting Digital Asset Exchanges" to "Building the Future of Decentralized Exchange". We are now one of the main actors building OpenDEX, a fully-fledged layer 3 decentralized exchange network. Also, back in 2017, no ICO was conducted and XUC’s initial circulation was achieved by private placements, which secured seed-funding for the project.

Our focus in the last two years has been heads-down building with little to no attention of XUC and its token model. Thanks to the work of some awesome people we got to know in a series of #LightningNetwork events, we started picking this up again and believe to have found a valid way to make XUC useful for OpenDEX. We are still ironing out some details and will lay out the full token model in the section below soon.

The token model of XUC (coming soon).

XUC, also to be found here.
  • Bittrex
  • HitBTC
  • HitBTC
  • CEX
  • EtherDelta
  • OKEX
  • Bittrex
  • HitBTC
  • CEX