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FinNexus Moves to SushiSwap and Burns Massive Amount of Tokens

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by Julia Sakovich · 4 min read
FinNexus Moves to SushiSwap and Burns Massive Amount of Tokens
Photo: Coinspeaker

For FNX holders, it is key to note that the circulating supply question has been answered by a community-selected token burn. For liquidity providers, everything will be moving to the SushiSwap platform in order to maximize liquidity in fewer pools.

FinNexus, the on-chain crypto options provider, has several major updates to report for the month of February. But first, a short intro to their project – one of the leading options trading platforms in Decentralized Finance.

FinNexus gives users the ability to buy and exercise options with BTC, ETH, LINK, SNX, or MKR as the underlying asset. This allows traders and investors to hedge positions, trade pure volatility, and gain leverage without having to interact with any centralized platforms. As well as providing options exposure, FinNexus offers rewards to liquidity providers via its ERC20 token, FNX.

This has been improved recently by implementing a new mining mechanism and there are also changes coming to FNX’s liquidity pools.

From Uniswap to Sushiswap

Up until last week, FinNexus used to run liquidity mining on both Uniswap and SushiSwap, giving users a choice of pools but splitting liquidity in the process. The benefits of one large pool, such as lower slippage, were not utilized despite there being enough liquidity to do so. For this reason, FinNexus completely moved its decentralized liquidity mining from Uniswap to SushiSwap. Centralized exchange trading pairs will remain as they are, with potentially more being added over time.

Improving user experience was at the heart of this decision. Choosing to aggregate liquidity in this way will simplify the liquidity mining process and enhance the FNX trading environment.

Community-Approved Token Burn

Apart from the liquidity pools, the token itself has been of significant interest to the FinNexus community recently, with concerns being raised over its non-circulating reserves. The total FNX supply used to be 500 million, while the circulating amount did not reach 23 million, meaning that approximately 4.47% of the total supply was on the open market. This was an obvious concern to investors, who had concerns over the number of tokens that could be sold onto the market at any time.

Things radically changed on February 12, when the FinNexus team implemented a massive burn of nearly 300,000,000 FNX, about 60% of the total supply. The decision followed a vote open to the community over whether to burn the tokens or locked them in a community-controlled fund. The burn came out as a strong favorite.

Upgraded Mining Mechanism

The final update is perhaps the most significant: a new liquidity mining mechanism for FNX liquidity providers. The goals of this upgrade are to increase users’ returns, deepen the platform’s liquidity, and propel the project to its next stage of development.

The core idea behind the system is the possibility of combining FNX and USDC/USDT, allowing users to reap larger rewards once tokens are locked.

The user adds FNX and USDC to the liquidity pool, receives FPT (the pool’s share token) and then stakes it in mining contracts. Rewards change depending on the proportion of the two coins and the time the user decides to stake them for. Now the mining APY can reach over 1400%, and FinNexus has provided a mining calculator on their UI.

The FinNexus team believes the new system will deliver significant results not just to individual users, but to the overall ecosystem as well. On the one hand, it will boost liquidity, a serious issue in decentralized finance. On the other, by encouraging users to hold both FNX and USDC/USDT, the team aims to strengthen the token and prevent any farm-and-dump scenarios.

Ongoing Airdrop

But what uses is it to have an amazing offer if nobody knows about it? In order to boost its visibility and engagement with users, FinNexus has launched a huge airdrop on February 2. The campaign will last for 30 days and will see the equivalent of 1068 FNX being disbursed to 500 addresses in FPT-B tokens, their share pool token.

That means a total of over 500,000 FNX will be sent out to addresses strategically chosen for their value. Among those who can participate are users who already provide liquidity to the USDC/USDT pool, Hegic contributors, participants in Curve Dao, YFII holders and whitelisted addresses from previous AMA with FinNexus.

Conclusion

For FNX holders, it is key to note that the circulating supply question has been answered by a community-selected token burn. For liquidity providers, everything will be moving to the SushiSwap platform in order to maximize liquidity in fewer pools. Additionally, the mining mechanism has been improved to offer better value to liquidity providers and increase the resilience of the token.

Altcoin News, Blockchain News, Cryptocurrency news, News
Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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