SoulSwap is a DEX with a lot of potential within the Fantom ecosystem, but it faces a lot of competition, so I propose a plan to make SoulSwap one of the projects with more long-term projection within Fantom.
This is just an idea, a draft that probably needs improvement but can be a good starting point.
This planing is divided into three phases: Ending Yield Farming, Increasing the value/utility of the token and adding the functionality of Self-Repaying Loans.
Phase 01 - Ending Yield Farming
Problem: Renting liquidity to users in exchange for SOUL tokens puts selling pressure on token, driving down its price. In addition, many liquidity providers act as "mercenaries", with no attachment to the protocol, only for profit.Solution: To be independent of liquidity providers, making the protocol control all liquidity. The main challenge here is to determine when the protocol has sufficient liquidity.
How to reach the goal: SoulSwap issues bonds (as it does right now) with which it obtains LPs in exchange for SOUL. When the protocol obtains sufficient liquidity, SOUL issuance stops forever. Yield Farming is terminated. In some way, bonds should be incentivized over Yield Farming. Perhaps by increasing the APR of the bonds and lowering the Yield Farming APR.
Phase 02 - Increasing the value/utility of the token
Problem: Define and increasing the utility of SOUL.Solution: SOUL's utility will be "limited" to obtaining part of the benefits generated by the Exchange.
How to reach the goal: SOUL can be bought and sold for trading, but ideally it should be staked. If you put it in stake you get SEANCE and, every day (or from time to time), the profits obtained by the Exchange are distributed among the SEANCE holders. In order not to create a selling pressure on SOUL, the profits are distributed in WFTM. For example: A user exchanges USD for DAI and the Exchange keeps 1 USD as commission. This 1 USD is exchanged into WFTM and when the time comes, it is shared among all SEANCE holders.
Phase 03 - Adding the functionality of Self-Repaying Loans
Problem: Competition in Fantom among the different DEX is very high and will probably increase.Solution: Implementing new functionalities that help to obtain returns.
A possible solution: Implementing Self-Repaying Loans using SEANCE as collateral. For example: A user has 10,000 SEANCE (e.g. 1,000USD). With that collateral, he can borrow up to 50% (similar to Alchemix limits), so he can borrow 500USD. The user does not have to pay back the loan, but the dividends he/she would get for having those 10,000 SEANCE are are used for the loan payment plus a commission.
I hope I have explained myself well and that my idea, at least in general, is understood.
Thank you very much to all the SoulSwap community.