What's up everybody, today we are going to talk about PulseX again. Thus, we will talk about tokenomics and the features of the PulseX coin. We are very bullish when it comes to PulseX, and it is important to know how it works, and how successful it will be compared to other DEXs like UniSwap, PancakeSwap, and others.
So, watch this video till the end because we are going to tell you everything you need to know about this project. After watching this video, you'll understand why we think PulseX deserves much more attention.
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Cryptocurrencies have outperformed every other asset class over the last 10 years. There's a reason for that: they remove counterparty risk and middlemen, allow for privacy, and have better uptime than your bank and credit card network. Cryptocurrencies allow for a better way to log in to things, they can work as cryptographic username & password pairs, independent of platforms. PulseX is an example of a crypto that will change many things in the sphere.
PulseX is a decentralized finance (DeFi) protocol that allows users to bridge in ERC-20 tokens and exchange various PRC-20 cryptocurrencies. Founded by Richard Heart, serial entrepreneur, author, YouTuber, and philanthropist, PulseX's goal is to provide PulseChain users with the best possible trading experience and yield farm.
When users swap from one coin to another on PulseX, liquidity providers earn fees as a reward. Users can bridge in their free ERC-20s and pair them with free PRC-20s to provide liquidity and earn fees, also backing their value.
PulseX is a DEX just like Uniswap, SushiSwap, and PancakeSwap. For more info on DEXs, these protocols are launched and operated in different contexts, but they are our closest comparators. So how did their tokens perform?
Well, according to the UNI-USD chart on Gemini, the Uniswap token hit a low of $1.78 on 16 November 2020, and a high of 45.16 on 3 May 2021. If you had bought the low and sold the high, you'd be sitting on a gain of 2,482%, or nearly a 25x increase in value.
The same is true for PancakeSwap. According to the CAKE-USDT chart on Binance, the token increased from $8.29 to $44.33 in 2021, representing a gain of 434%, or a 4.3x gain.
SushiSwap is another similar protocol. According to the SUSHI-USDT chart on Binance, we see it falling to a low of $0.485 and rising to a high of $23.46. This represents a whopping 47x gain in value!
In our opinion, PulseX has the potential to outperform Uniswap, CAKE, and SushiSwap because it will operate in a different context and has different tokenomics.
It is important to know that, DEXs generally reward Liquidity Providers (“LPs”) with fees and native tokens. In the case of CAKE and SUSHI, the reward tokens are inflationary, meaning that their supply continually increases.
By contrast, PLSX never inflates. PlsX is deflationary. As we will see below, the supply of PLSX will decrease over time.
When supply stays the same or goes down, the price of the asset is primed to increase (if we assume stable or increasing demand). For this reason, we think that PLSX is placed well to outperform the aforementioned DEX tokens.
There are some other factors we need to consider too, but they are very difficult to quantify. The most important factor is whether people are, on balance, going to sell or HODL the native token. It is very difficult to assess what the time preference of the sacrifice set will be. Some investors are looking for quick gains; some will look to swap their PLSX token for PLS token, and others are looking for gradual and hopefully higher appreciation over time. Indeed, the same person could allocate a percentage of their bag for quick and dirty gains, but commit the rest for longer-term holding.
We don’t think anyone truly knows what the overall sentiment and ambitions are of the sacrificers as a whole. Indeed, it could take just one or two whales to dump the price in any project – you simply cannot know whether or when this would happen for any particular token.
What we do know is that around $1 Billion of value have been sacrificed for the PulseX protocol. This is a serious testament to the confidence people have in Richard Heart and the project in general.
We like the fact that PulseX is going to be launching on a brand-new chain with unique features. It has the potential to be one of the largest yield farms in history because every ERC20 is being replicated on the PulseChain and handed to holders for free. If they so choose, they could bridge those ERC20s over and pair them with their corresponding PRC20s in PulseX. We think that this play, which has been discussed by many in the HEX community, is likely to come to fruition for a number of coins, notably HEX.
We also like the fact that the PulseX DEX is going to have so much liquidity, which the PulseChain “fixer bot” will ensure. This makes it likely to be the most liquid and most used exchange on PulseChain. In addition, it will have super low transaction fees, making 3/4 it a dream to use for traders of all sizes.
You can provide the PLS or PRC20s that you hold as liquidity to PulseX and earn a yield on them. This is less risky than trading and allows you to earn predictable income on your crypto. As we mentioned earlier in this video, Cryptocurrencies have the highest yields in the world, far exceeding those of other asset classes.
Besides this, they also have the most transparent trading in the world.
Not only can you see on-chain what addresses trade which assets, but you can also see transparently which addresses sold, bought and how much money it has left to buy more.
Let's not forget also that it is efficient.
With Bitcoin you need from minutes to hours until a transaction confirms and transacting costs you multiple USD in fees, transacting on PulseChain costs less than $0.01 and confirmations happen in about 3 seconds. PulseX utilizes this network to allow for fast & cheap swaps between PLS and PRC20s. PLSX only becomes more rare.
PulseX has lower fees than most competing exchanges. The fee to users is lower than on most competing exchanges.
According to the official PulseX website, PulseX will have a 0.29% fee that users pay on every swap. That is less than Sushiswap, Trader Joe, Quickswap, and Uniswap. 76% of all trading fees could be distributed to Liquidity Providers. 21% could be used to buy and burn PLSX, reducing its supply over time. 0.01% of a trade's value goes to an address you must have no expectations of.
And most importantly, PulseX will have the most Liquidity on PulseChain.
The initial liquidity for PulseX comes from a bot called the "AMM ratio fixer bot". It harvests over around 99.9% of many coins' liquidity from Uniswap, SushiSwap, and other popular markets at launch then recreate those pairs on PulseX and adds the liquidity it has harvested along with fresh PLS to make PulseX the vastly most liquid exchange on PulseChain. As users want the best deals for their trades, they tend to go where the liquidity is the largest. That creates volume. As liquidity providers make a profit on volume, they are likely to deposit on the exchange with the most volume. It is hard for new competitors to overcome the critical mass of so much liquidity in one place.
In truth, it has been difficult for us to find any bearish features relating to PulseX. The tokenomics have been very well thought out, and it seems that it’s specifically designed to pump in price. That fact, combined with the overwhelming confidence people have shown thus far makes us think that it could outperform UNI, CAKE, and SUSHI in its first year.
If we assume that the macroeconomic picture is going to remain relatively stable and similar, we don’t see why PulseX can’t outperform similar DEXs in its first year. We could be wildly wrong, of course. But that’s our best guess. We wish you luck on your journey.
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