Savix´ Development, Analysis And Outlook, Autumn 2021
The last months have been quite complicated for several reasons, which will be analyzed below. But let’s put some positive aspect first:
The Savix contract is smoothly running for about half a year now without any technical issues. Distribution of staking returns work fine exactly as designed. This means that the project can rely on a solid technical basis.
- Early partnerships turned out to be ineffective. SWFT direct swaps of SVX tokens took several months to actually get enabled by our partner. In the end, we discovered that the transaction fees cumulated to more than the common Uniswap fees and decided not to offer this option to our user for the moment. BiP terminated their project completely.
- Releasing Trinary as planned turned out to rise unforeseeable regulatory or legal risks for the Savix project. This makes the original Trinary design impossible to realize. Necessary adjustments (technical and -more important- organizational) would increase the costs to a level where the original Trinary concept would become unprofitable. Therefore, focussing mainly on Trinary as a mechanism for price stabilization by reducing the amount of tradable tokens turned out to be an Achilles heel for Savix.
- Adjustments of the Savix contract have been impossible due to the immutability of the Savix contract. This feature, which originally was meant to guarantee users security from manipulations, unfortunately prevented any other alterations of the contract as well, like features keeping bots from interacting with the Savix contract.
- The funds which had been assigned to additional development and marketing resources are held away from us by the exchange the Savix IEO had been executed at. In fact, Exmarkets still holds around 30% of our IEO funds against all agreements we have with them and without any explanation. All fees and costs have been taken by them, of course. Without this money, we could not realize developments as fast as we planned. At the same time, the conflict with our partner exchange has cost us a lot of energy, psychologically and physically.
Current situation and perspective
- Since the end of September, the liquidity of our Uniswap pool can be unlocked by us. This gives us the opportunity to redesign and update Savix by relaunching the token. After this relaunch, we can redeploy the liquidity to a new pool.
- A relaunch will enable us to implement better incentives for price stability, to optimize the staking mechanism and will give us the option to restart the staking system, attracting new users with better reward options.
General idea and features of the new Savix token
- The new Savix concept will actually implement two tokens: the new Savix token (main token) and a specific staking token implementing the staking mechanism.
- Staked tokens will be taken out of Savix circulating supply (“locked”) to increase price stability. The way of distributing staking rewards will continue to rely on a rebase mechanism.
- The staking rewards will be backed by a funds reserve, which will be created by remaining capital of the project and parts of the current Uniswap liquidity, which is overscaled for the current market cap. Furthermore the reserve will be regularly filled up by fees for certain transactions within the network (see below).
- The total height of staking rewards will be a ratio of the funds reserve’s volume. This amount will be shared among all staked tokens. Therefore in the beginning the return per staked token will be very high, getting lower the more holders stake their tokens.
- Longer staking periods will be rewarded with extra bonuses (Longer stakes pay out more).
- The new Savix protocol will introduce a fee system, used to generate a constant input of value to the fund reserve. This way rewards paid will be backed.
- Additionally, all stakers will get the opportunity to profit from good estimations on future prices of the Savix token. One possibility will be to limit the price risk of staked tokens by defining a price shield with a lower price limit. If the token price falls below this price within the specified timeframe, the staker will profit from the falling price.
To profit from rising prices, stakers will be able to reserve a specific purchase price. If the token price rises above this limit, the staker will profit from the price difference.
This unique feature will only be available for staked tokens and within certain general volatility boundaries.
- Fees for these features as well as for unstaking or transfers will be used to stabilize and increase the funds reserve in order to back staking rewards and payouts for the new price estimation features.
We will soon publish a light paper with more technical details of the new Savix. Meanwhile, any support to move Exmarkets to release our development funds to us will be helpful.
Proposal for a road map
- Light Paper Release
- Deployment of new Savix contract
- Migration of old Savix token to the new protocol
- Migration of old Savix liquidity pool
- Deployment of new Staking contract
- Update of listing sites like CMC, Coingecko and Etherscan, etc.
- New marketing campaign
- Deployment of contracts for price shield and purchase reservations
- Transfering the project to the community (DAO)
We hope that this way, Savix will get a new chance to come to life. Our team is open for further ideas which can help improve the project, of course.