RDP-1: ETH/rxvDBX Liquidity Pool

Author Description:

The author of this proposal is the RealtyX core team.

The RealtyX core team is a dedicated group of professionals and innovators passionate about merging real estate with blockchain technology. Focused on creating a more transparent, efficient, and accessible real estate market, the team is driven by the mission to tokenize real-world assets and offer unique utility through their platform.

Proposal Overview:

Summary:

We propose the launch of an ETH/rxvDBX liquidity pool to provide current rxvDBX holders with the ability to redeem their rewards immediately.

Background:

Starting June 7th, RST holders gained the ability to mine DeBox vDBX tokens with their RST holdings. This innovative mechanism allows users to mine vested vDBX with significantly lower resources. Initially, mining vDBX required an investment of roughly $30,000 to achieve full efficiency. In contrast, RST holders can mine vDBX at a cost of just $50.

For a detailed explanation of the RST-to-vDBX mining mechanism, please refer to our blog article.

Challenges and Solution:

Since vDBX is not yet on-chain and remains vested, RealtyX consulted with the DeBox development team and discovered that it is not currently feasible to directly distribute vested vDBX to RST holders. To address this, RealtyX has developed a new token smart contract to reflect the quantity of vDBX mined via RealtyX, named rxvDBX. The quantity of vested vDBX mined by RealtyX is mirrored by the new representative token on a 1:1 basis. rxvDBX can be redeemed for liquid vDBX at a 1:1 ratio once the DeBox official team lists vDBX on exchanges, effectively at the time of the Token Generation Event (TGE).

Proposal:

Given the uncertain timing of the vDBX TGE, we want to build trust within our RealtyX community by offering immediate liquidity. Therefore, we propose to launch an ETH/rxvDBX liquidity pool.

The ETH resources for this liquidity pool will come from the 10 ETH Raffle Prize Pool previously allocated for marketing initiatives. However, given the ongoing development of the RealtyX platform, we believe these funds can be better utilized. We propose to refine the 10 ETH Prize Raffle mechanism, pausing the initial schedule until we devise a better strategy. Additionally, we intend to allocate 1 ETH from the 10 ETH Prize Pool to the ETH/rxvDBX liquidity pool.

Benefit to the community members and the RealtyX ecosystem

Immediate Liquidity:

• By launching the ETH/rxvDBX liquidity pool, community members can immediately redeem their rxvDBX tokens for ETH, providing them with quicker access to their rewards.

Enhanced Trust:

• Offering immediate liquidity demonstrates RealtyX's commitment to its community, fostering greater trust and confidence in the project and its long-term viability.

Reduced Risk:

• The liquidity pool reduces the uncertainty associated with the timing of the vDBX Token Generation Event (TGE). Members can convert their rxvDBX tokens without waiting for the vDBX to be listed on exchanges.

Optimized Resource Allocation:

• By reallocating funds from the 10 ETH Raffle Prize Pool to the liquidity pool, RealtyX ensures that resources are utilized in a way that directly benefits community members and supports the platform's development. ####Increased Engagement:
• The introduction of the liquidity pool can drive higher engagement within the community, as members see tangible benefits and improved utility for their holdings.

Definitions:

• RealtyX: RealtyX is a real estate RWA (Real World Asset) launchpad powered by the RealtyX DAO. By leveraging blockchain technology, it tokenizes real estate assets and offers RWA tokens. These tokens go beyond simple ownership, unlocking additional value through the platform's unique utilities and enriching the ownership experience.

• RST: RST is an ERC-20 token issued upon acquiring fractionalized property rights through RealtyX. The token grants holders governance voting capabilities and serves as proof of property rights, with the ability to trade on RealtyX’s onchain secondary market.

• DeBox: DeBox is a decentralized Web3 social platform offering networking, SocialFi experiences, DAO tools, and community building features.

• vDBX: vDBX is the utility token of DeBox, facilitating user participation within the platform. It is currently off-chain and expected to be on-chain by Q3, 2024.

• rxvDBX: rxvDBX is a representative token developed by RealtyX, mirroring the quantity of vDBX mined via RealtyX on a 1:1 basis, and can be redeemed for liquid vDBX once vDBX is listed on exchanges.

• Liquidity Pool: A liquidity pool is a collection of funds locked in a smart contract, used to facilitate trading on decentralized exchanges (DEXs) by providing liquidity, enabling users to swap between tokens efficiently without the need for a traditional order book.

How to Implement

1. Liquidity Pool Preparation: Confirm the allocation of 1 ETH from the 10 ETH Prize Pool to the ETH/rxvDBX liquidity pool.
2. Integration with Uniswap V2: Register the rxvDBX token on Uniswap V2, ensuring it is paired with ETH.
3. Provide detailed instructions and guidance to community members on how to swap rxvDBX tokens for ETH on Uniswap V2. Conduct a series of informational sessions and AMAs (Ask Me Anything) to educate the community about the liquidity pool mechanism and its benefits.
4. Timing and Coordination: Schedule the launch of the ETH/rxvDBX liquidity pool to occur one week after the official launch of vDBX Airdrop Season 2. Monitoring and Evaluation: Monitor the performance and stability of the liquidity pool.
5. Collect feedback from the community to identify any issues or areas for improvement.
6. Adjust strategies and provide updates as necessary to ensure the ongoing success and optimization of the liquidity pool.