Trader Questions

Q: What might be the expected behavior of $DXBL traders?

It's possible most traders will simply redeem $DXBL as the NAV of those tokens goes up from the value accrual in the community vault, while others will end up cashing in on premiums when $DXBL is worth more than NAV in a secondary LP DEX market then purchasing back in when it’s at a discount.

Q: Why is the input/output mandatory to be one of the vault tokens?

A: To streamline the available tokens in the Community Vault, one side of each swap must be a Vault Token, where the Protocol Fee will be applied. This ensures liquidity across the Vault pools and mitigates any Vault token from being rugged.

Q: Is it possible to arbitrage $DXBL between chains?

A: In short, no. Any arbitrage opportunity between chains would be lost through the bridging process. $1,000 worth of $DXBL would not be worth the same amount of tokens on another chain. There are several intermediate steps between going $DXBL-ETH to $DXBL-ARB for instance.

Here's a bit more to chew on:

Here’s why arb cross-chain is a bit infeasible.

Let’s say Arbitrum volume increases the NAV of $DXBL-ARB. You earn that $DXBL-ARB for every trade you submit and let’s say you’ve earned $10k worth of $DXBL. But to arb, you need to swap the $DXBL-ARB for a stable, then do the bridge transaction, then swap into $DXBL on that network. By that point, then you have less than $10k of stables on the other chain, let’s say Avalanche, which has lower volume, therefore, a lower NAV.

You could then buy $DXBL-AVAX, which is 50% of the NAV of $DXBL-ARB. But now you’re exposed to Avalanche's volume speculation. You could run this strategy to speculate on one chain’s performance versus another, and the $DXBL is a beta asset of that relationship, but it wouldn't be efficient enough across chains yet for direct arbitrage.

Q: Is it possible for a trader to use $DXBL to pay for fees?

A: No. $DXBL cannot be or ever approved as a fee token for trades on Dexible. $DXBL measures the trader's total volume traded on the platform, adjusted by all the factors discussed in this litepaper.

Q: How does Proof of Trade mitigate the risk of wash-trading?

A: Wash-trading, or the act of repeatedly swapping stablecoins to mint $DXBL, is not actively discouraged in the Proof of Trade protocol. However, it is worth noting that wash-trading increases the minting rate and difficulty for the participant.

Q: What is the fate of previous trades prior to the implementation of Proof of Trade? Will traders using Dexible v1.0 see a return in value?

A: The Proof of Trade protocol is only applicable to trades executed after the protocol's launch. Trades executed on Dexible v1.0 will not result in the minting of $DXBL and would need to be canceled and resubmitted.

Q: Why is trading with Proof of Trade more expensive in terms of gas fees than Dexible v1.0?

A: There's increased contract logic. There are more gas points consumed from more complexity. The calculation of gas points can be better understood through the complexity and layers of opcodes. It's a feature of on-chain apps that the next generation of DeFi products must solve.

Learn more about Gas Points, Gas Limits, Gas Prices, Opcodes, and Bytecodes here: https://dexible.io/academy/automated-trading/what-are-gas-points