Proactive Market Making (PMM)
Revolutionizing Real Estate Liquidity
The EleveX Proactive Market Maker (PMM) introduces an innovative liquidity management system optimized for tokenized real-world assets (RWAs), such as real estate. Unlike traditional AMMs, the EleveX PMM focuses on stability, precision, and profitability, creating a seamless and efficient trading ecosystem for investors and liquidity providers (LPs).
Key Features of EleveX PMM
One-Sided Liquidity Provision
LPs can stake stablecoins (e.g., USDC) without the need for pairing them with property tokens, simplifying entry and minimizing risk.
Staked funds are used by the PMM algorithm to facilitate trades, maintaining market efficiency.
Liquidity Mining Incentives
Early participants in liquidity pools receive bonus ELVX tokens during the first 12 months.
These incentives enhance returns for early adopters, driving initial liquidity and supporting market growth.
Tailored Liquidity Concentration
Liquidity is concentrated around target prices, derived from property valuations, appraisals, and market trends.
Reduces extreme price volatility while ensuring accurate price discovery aligned with real-world values.
Earning Potential for LPs
Trading Fees: Earn a share of the 1-1.5% transaction fees charged on each property token trade.
Rental Income: Continue to receive payouts from staked property tokens generating rental income.
Penalty Rewards: Collect rewards from penalties charged to LPs withdrawing liquidity prematurely.
Liquidity Mining Rewards: Additional ELVX token rewards for participating in early liquidity mining campaigns.
Revenue Distribution for LPs
80% of Trading Fees: Distributed to LPs, offering substantial earnings.
Penalty Redistribution: Early withdrawal penalties are redistributed among long-term stakers.
Smart Contract Safeguards
Enforces maximum staking limits (e.g., 20% of a property’s token supply) to maintain liquidity balance.
Implements penalty mechanisms to discourage premature withdrawals and reward long-term stability.
Benefits of the PMM Model
Ease of Entry: One-sided staking allows LPs to participate by only providing stablecoins.
Multiple Revenue Streams:
Earn from rental income, trading fees, liquidity mining rewards, and penalty distributions.
Diversified returns maximize profitability while minimizing risk exposure.
Stable Price Discovery:
Concentrated liquidity ensures prices remain closely
tied to real-world valuations, avoiding the speculative volatility of traditional AMMs.
Flexible Participation:
LPs can opt to stake only stablecoins for rewards or trade property tokens via market orders without staking.
Example Use Case
Scenario: An investor stakes $20,000 USDC in a property token liquidity pool.
Earnings Over 6 Months:
Trading Fees: Earns a share of the 1% trading fee on all transactions.
Rental Income: Receives regular monthly payouts from the staked property’s rental income.
Liquidity Mining: Gains bonus ELVX tokens during the early liquidity mining incentive period.
Penalty Rewards: Benefits from penalties charged to LPs withdrawing early.
Result: The investor enjoys a stable and diversified return while benefiting from real-world asset performance.
Staking and Withdrawals
Liquidity Mining Rewards
Early stakers in liquidity pools are rewarded with bonus ELVX tokens for their participation in building the ecosystem.
Penalty Mechanisms
LPs withdrawing liquidity prematurely are subject to a sliding-scale penalty.
These penalties are redistributed to remaining stakers as an incentive for maintaining liquidity.
Slippage Management
Large trades relative to pool size may incur slippage, but PMM minimizes this effect by concentrating liquidity near the real-world valuation of the property.
Why Choose EleveX PMM
The EleveX PMM is designed to create a sustainable and rewarding ecosystem for all participants. By integrating real-world asset valuation with proactive liquidity management, PMM ensures price stability, enhances trading experiences, and maximizes returns for LPs.
Whether you're seeking rental income, trading opportunities, or passive staking rewards, EleveX PMM offers a transparent, secure, and profitable way to engage with tokenized real estate assets.
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