Unlocking new DOOAR(s)
DOOAR is STEPN’s latest attempt at introducing new revenue streams. Why are we so excited about DOOAR, our very own Decentralised Exchange (DEX)? Well, we have always been seeking ways to utilise the tools at our disposal to create value for our community members.
We are thrilled to announce that the actual volume and numbers behind DOOAR’s usage since its launch a month ago has been completely mind-blowing. We will also talk about how this all goes back into the STEPN ecosystem, and how this is relevant for the average STEPN user.
But First…What is a DEX?
Many of you may already be familiar with Centralised Exchanges (CEX) like your average stock brokerage (In Web3, that would be the likes of Binance or FTX). CEXs typically follow a custodial trading structure, where users would be required to deposit money or crypto into the exchange, before being permitted to trade via order book. Traders usually prefer a CEX due to their consistently high liquidity and volumes.
Meanwhile, a DEX removes the custodial portion of the transaction, thus users are not required to make any deposit beforehand. To make a trade, users just need to connect their crypto wallet to the DEX.
DEXs operate through the utilisation of smart contracts, which automatically execute the transactions in line with the agreed terms, thereby effectively removing the middleman. DEXs are usually the go-to platform for users looking to perform small and quick trades without going through the hassle of the normal CEX route.
Why Create Our Own DEX?
Since the inception of our app, the STEPN team has been acutely aware that we would be churning out a colossal amount of trading volume, as our users need to regularly swap to and from our native tokens to either cash out and reinvest into our game.
By creating our own in-house DEX, we are able to accomplish a few things:
1. Grow an additional revenue stream through transaction fees
While Orca has served our user base well, this chart shows that over the past few months, STEPN-related transactions have dominated the numbers, taking up almost 77% of the total transactions made since 1st March 2022.
Source: Anduril.data
It only makes sense that since our users make up the majority of these transactions, that we create our own DEX, and thus funnel the fees from these transactions to us.
2. Channel additional money into STEPN’s ecosystem
Our DEX charges a 1% trading fee. While this may seem higher than average, users will be glad to hear that this is all done in order to bolster the ecosystem. The breakdown of the fee is as follows:
Ecosystem Fund: 0.6%
Liquidity Providers: 0.3%
Product Development: 0.1%
As seen above, the majority of the fees go into the ecosystem fund. This fund will ultimately be used to support the ecosystem, through initiatives like buyback and burn of sneakers and tokens, and even community raffles and giveaways, all in the name of sustainability and giving back to our community.
How has Our DEX Performed So Far?
Short of blowing our own horn, let’s look at some of the data relating to our DEX:
Wallet Interactions with STEPN Dex
Source: Anduril.data
We are seeing a steady increase of unique wallets that utilise our DEX, averaging 4,000 to 10,000 per day over the past week alone. This shows that day by day, the amount of adoption by new users is simply dizzying.
Cumulatively, over 300,000 unique wallets have interacted with our DEX as of 10th July 2022. For perspective, that’s about 30% of total daily Solana users!
Source: Nansen (As of 12th July 2022)
Daily Active Users Across Solana DEXs
Source: @twocrows
In July alone, we have averaged daily active swaps of over 50,000 (the number of unique wallets that perform a swap through our DEX), making up more than 60% of daily DEX activity throughout the entire Solana ecosystem.
Daily Transaction Volume
Source: Anduril.data
Looking at transaction volume, we notice that since the launch of our DEX, our daily volume has averaged above 80,000.
In contrast, Orca, one of the largest and leading DEXs on Solana, only averaged about 50,000 daily in the past week.
Closing Thoughts
We could go on, but you get the idea. As always, in all that we do — our focus is to drive value to our users. DOOAR’s success is not just the team’s alone, but a win for the entire STEPN community. Simply put, the higher the usage of our DEX, the more money goes back into the STEPN ecosystem.
DOOAR is just the first of many monumental creations that STEPN intends to roll out in the months to come. We are incredibly excited for the next stages of our DEX development — transitioning into a multi-chain DEX, and the roll-out of our front-end by September. All of which will certainly bring even more serious attention to it. This is a great step towards our aim of becoming a holistic platform — and we certainly look forward to sharing the joy with all users who put their faith in us.
Upwards and onwards!
