The SOEX protocol is thrilled to unveil a novel approach to enhancing liquidity and incentivizing social engagement based on the CVT and HVT mechanisms. Designed to offer long-term value, these two innovative assets push the concept of NFT to the next level and unlock new possibilities for users and projects.
Below is a brief outline of the technical foundation of CVT’s innovative tokenomics, detailing the smart contract architecture, liquidity mechanisms, and structures that enable secure, scalable, and incentivized asset minting in a decentralized environment.
Motivation and technical solution
Liquidity is a significant challenge in decentralized systems, especially for unique or infrequently traded tokens like NFTs. The reduced pool of buyers can deeply affect trading volume and liquidity. Additionally, prices driven solely by supply and demand, coupled with market volatility, often lead to setbacks.
To provide an effective solution, it is crucial to prioritize the inherent intrinsic qualities of these assets. CVT and HVT are designed to bear and generate value, providing holders with valuable earning strategies and general users with a strong motivation to mint.
What is CVT? - A next-gen NFT, an onchain community certificate with multi-functional features (SNS, SBT, TVL), a value-bearing asset that also enables the creation of onchain communities and the expansion of a social tree referral system. Within that system, community leaders can invite users to mint HVT and unlock earning opportunities.
HVT, the second pillar of this new system, provides staking rewards and value appreciation over time and will soon support advanced fund management and liquidity strategies to help users generate profits.
In addition, HVT introduces an innovative approach to liquidity. When a user mints an HVT, its value is securely locked within a smart contract. Later, if they want to reclaim that value, they simply burn the HVT.
With this setup, SOEX achieves NFT liquidity without relying on external liquidity providers. Allowing users to mint assets tied to their value and burn them to reclaim that value creates a self-sustaining liquidity system that operates independently of external resources.
Essentially, simply holding CVT and HVT represents an efficient earning strategy, with rewards accumulating effortlessly.
Learn more about these two innovative assets here.
More innovation in progress
The SOEX team aims to expand the NFT sector further by creating an optimized environment for projects to mint various NFTs more efficiently. This strategy is based on a smart contract that leverages the OAMM (Oracle Automated Market Maker) function to execute NFT minting and burning by dynamically adjusting prices. This approach enables NFT circulation without relying on external liquidity providers.
This automated pricing solution is designed to stabilize NFT liquidity through transparent, smart contract mechanisms.
This SOEX smart contract will offer two core innovations:
- Automatic Price Discovery
- Liquidity Enhancement
Combining these two features enables the issuance of next-gen NFTs on SOEX, trading without the need for a matching counterparty (as the OAMM function will automatically provide prices based on an oracle with a predefined function), and internal liquidity management.
Results and use cases
The innovative design of SOEX’s CVT and HVT mechanisms fosters a thriving ecosystem that benefits communities and can enhance liquidity across decentralized platforms. By leveraging the OAMM function system and the inherent value of social interactions, SOEX empowers users to create meaningful connections while also providing them with financial incentives.
Key outcomes include:
- Increased Community Earnings: Revenue avenues benefit community creators and followers alike.
- Enhanced Liquidity: As CVT holders mint HVT, they contribute to the overall liquidity of the SOEX platform, but HVT holders can ultimately enhance liquidity in the market by borrowing stablecoins against their HVT value and becoming LPs.
- Incentivized Engagement: Dual rewards for CVT and HVT minting drive community participation.
- Value in Social Connections: Financial incentives strengthen community bonds.
- Long-term Value Creation - By integrating social engagement and intrinsic value generation, SOEX aims to create a sustainable ecosystem that continuously enhances liquidity. The interplay between CVT and HVT ensures that as the community grows, so does the liquidity and overall valuation of the assets involved.
The monetization of social connections is an efficient method of improving liquidity – both for NFTs and for platforms in general. Through these mechanisms, SOEX’s technical blueprint demonstrates a robust solution for enhancing liquidity while supporting genuine social interactions within decentralized communities, setting a new standard in Web3 social trading.
About SOEX
SOEX is an innovative crypto trading aggregation tool that integrates social attributes with professional trading functions, creating a full-stack convenient trading experience for users. Using protocols like Nostr+, TradeDivi, and Sketch and integrating Solana, it delivers a complex SocialFi experience, marking a massive leap from the limitations of Web2 apps.
In addition to trading, the platform also turns social networking into a highly rewarding strategy using two innovative assets for a next-gen referral tree.
For more information, visit SOEX’s Official website, X (formerly Twitter), Telegram, and Medium.