The Arbitrum ecosystem has been making the rounds on crypto twitter especially since its Nitro upgrade and the looming rumored $ARB airdrop to the users of the ecosystem.
This has made the ecosystem witness a huge influx of users which has gone on to hit a TVL of $1.08b currently across all protocols according to DefiLlama.
But while there are a ton of incredible projects already launched in the ecosystem, I’ll be delving into bringing the true Arbitrum native DEX to limelight – 3xcalibur69 protocol.
The 3xcalibur protocol is a permissionless, liquidationless and oracleless liquidity protocol designed with a novel Tri-AMM structure offering varying products ranging from borrowing & lending, stable swaps, variable swaps.
The 3xcalibur protocol is launched on the Arbitrum Nitro and has gained traction amongst seasoned investors and protocols alike.
The 3xcalibur69 protocol is the first of many products intended for the 3xcalibur ecosystem.
It was developed by 3six9 Innovatio – an incorporated company focused on bringing emerging technology to the forefront, primarily in the blockchain and cryptocurrency space.
This incredible innovation was borne out of an inspirational lore which goes thus:
‘From the darkness, a light will shine, light so bright that it will illuminate all, one who solves the ancient riddle of 369, will be the savior of all!’
The core features of 3xcalibur protocol :
- 3xcaliSwap (Liquidity marketplace)
- 3xcaliCredit. (Money market)
- 3xcaliGovern.
The 3xcaliSwap is a permissionless DEX that allows other protocols to easily acquire deep liquidity for their token, lock their $XCAL tokens and get the vote-escrowed $XCAL token (ve-$XCAL) to gain voting power and direct emissions to their favorite pools while accruing fees from the pools they incentivize.
The 3xcaliCredit feature enables other protocols to raise capital via debt financing – protocols provide their native token as collateral to raise capital rather than the traditional way of selling their native tokens. This is much more reasonable since we’re currently in a bear market.
The 3xcaliGovern is where users can participate in protocol governance and generate yield.
Core User Functionalities include:
- Vest (lock $XCAL, recieve $veXCAL)
- Vote (use $veXCAL to direct emissions)
- Bribe (add extra incentives to swap and credit pools)
While the permissionless concept rings a bell in the broader crypto industry, it is note-worthy to learn about the liquidationless and oracleless nascent features and how they work to make the protocol unique and efficient.
The whole concept of the liquidationless liquidity protocol is made possible in the 3xcalibur protocol by introducing the 3xcaliCredit which makes it easier for borrowers to manage their health factors. Users are allowed to create a borrowing & lending pool i.e. Token A (Asset) + Token B (collateral) with a maturity date. When the maturity date is reached, borrowers who have not paid back their loans, have their collateral distributed amongst lenders of the pool. There are no liquidations, only defaulting on borrowed assets.
Incredible stuff!
The oracleless concept eliminates the growing number of exploits and malicious acts in oracle data feeds (especially in borrowing & lending protocols) by introducing a unique 3 variable constant product AMM which effectively replaces the oracle data feed – a feature that is yet to be introduced in any other liquidity protocol out there. This means the borrowing & lending feature does not rely on oracles for pricing interest rates or collateral factors rather 3xcalibur use a 3-variable constant product formula derived from Timeswap’s solution to achieve this.
The user interface (UI) and user experience (UX) design is incredible as it facilitates a seamless trading experience even for newbies. It is one of my favorite findings while navigating the dex.
Not to mention the fact that the Multiswap and Zap features are currently in the works. That’s absolutely mindblowing.
Another interesting part is the Great Migration programme…
This is a liquidity migration programme designed to incentivize the migration of liquidity by individual LPs from other decentralized exchanges (DEXes) to 3xcalibur. This is in line with their belief that all Arbitrum projects should have their liquidity pooled in a truly Arbitrum native DEX as they intend to give support to the projects in the Arbitrum ecosystem by giving $XCAL grants to them. 3xcalibur also intends to drive powerful community engagement in the ecosystem leveraging this programme.
Here are some of the details regarding the programme…
Now, let’s dive deep into the tokenomics of $XCAL (native token of the 3xcalibur protocol):
$XCAL is the native token of the 3xcalibur ecosystem issued on arbitrum as a standard ERC-20 token. It provides several utilities to users such as:
- Accruing platform fees and bribes.
- Voting gauges and directing emissions.
- Governance token.
It can be vote-escrow locked into $veXCAL for variable lengths: from 1 week to 3.69 years.
This is a model based off of the curve finance model. The locked position will be represented by a veNFT and the $veXCAL holders will be able to participate in the overall platform governance.
$veXCAL holders will be able to vote for which liquidity pools receive emissions in a given epoch by using the gauges in exchange of trading fees (for 3xcaliSwap pools), lending/borrowing fees (for 3xcaliCredit) and the corresponding bribes.
You can read more about the token metrics here…
Interestingly, there’s an incentivized educational programme hosted by 3xcalibur for researchers, degens and writers to educate the public about 3xcalibur protocol and their favorite projects in the arbitrum ecosystem.
This campaign consists of 4 guilds. Each particular guild has its specific rules and incentives attached.
You can read more about it here:
https://3xcalibur.ghost.io/the-threadooor-guilds
You can learn more about 3xcalibur protocol by following them on twitter @3xcalibur69, and joining their discord server – https://t.co/GphTABcwfj.
Written by: Paschal Ajaegbu.
