The SpaceSwap project aims to become the first and only one-stop-station for major DeFi protocols. It will provide users with a fair and profitable earnings sharing system, topped by MilkyWay (MILK) coin rewards and MilkShake (SHAKE), to boost your earnings. With a week left before the fantastic release, the SpaceSwap team is setting up the final details of its DeFi protocol. Let’s find out how it works.
Uniswap Protocol – the first step on the way to perfection
The integration of the Uniswap DeFi protocol is just the departure point for SpaceSwap’s launch – later on, it will add new protocols.
Why does Uniswap serve as the foundation of the platform at its initial stages? Currently, this is the most widely used open-source DeFi protocol. It’s not only about the liquidity pool that exceeds $1 billion. Uniswap boasts a wide range of use cases – improved protocols have proven to be viable and efficient.
How will it work?
First, SpaceSwap will provide the same liquidity pools as Uniswap with unique features serving as the cherry on top of the milkshake. Liquidity providers will be able to migrate their tokens from Uniswap pools to the new protocol in a couple of clicks.
Since the list of available pools is the same, users owning Uniswap LP tokens can choose the corresponding liquidity pool and stake deposited tokens there. Essentially, they can leave their liquidity in Uniswap and store the received derivative tokens in SpaceSwap pools.
The list of eligible pools and tokens will be chosen by users through their voting rights (i.e. owners of MILK governance tokens) – it’s the community that will decide on the platform’s development and the MILK weight in pools. So far, SpaceSwap plans to support lending pools with DeFi and CeFi stablescoins and broaden the array of protocols supported. MILK/WETH liquidity pool will provide maximum rewards to early users, so it’s highly recommended to deposit MILK into Uniswap.
Here’s the mechanism for MILK reward distribution :
During the generation of the first 100,000 blocks, MILK coin rewards will be increased ten-fold (1,000 MILK) to be distributed among early adopters. With the generation of the next block, these coins will be unlocked and sent to liquidity providers in the amount corresponding with their deposit. Afterward, each block will generate 100 MILK coins.
SHAKE stablecoin, in its turn, is pegged to MILK at a ratio of 1:1000. Thus, one SHAKE coin always equals 1,000 MILK, with these coins being inter-exchangeable. We’ll discuss SHAKE coin’s value later.
Liquidity migration on the way
When the first 100,000 blocks get