Loxodrome is a decentralized exchange (DEX) on the IoTeX blockchain, specializing in Decentralized Physical Infrastructure Networks (DePIN) as a native liquidity marketplace. ^[1][2]

Overview

Loxodrome implements the ve(3,3) concept to enhance token-based governance and liquidity in decentralized finance. Loxodrome primarily facilitates trading services for native DePIN tokens, contributing to the liquidity and activity of the DePIN sector within the blockchain ecosystem. This focus integrates physical infrastructure with decentralized financial technologies. ^[3][10]

Building Loxodrome on IoTeX leverages the platform's role in the DePIN sector. IoTeX, established in Silicon Valley in 2017 as an open-source project, is known for its team of experts in cryptography, blockchain, and IoT technologies. The platform is an infrastructure builder in the DePIN space, known for integrating the Ethereum ecosystem with real-world applications using W3bstream-based and zero-knowledge (ZK) proof technology. ^[4]

"Loxodrome mission is to create a significant impact and bridge between DePIN and DeFi by accelerating constant liquidity for DePIN through a decentralized nature which will enable users swap with low fees and almost zero slippage, empower the community, and get incentives to vote for thier fav pool in return for bribes which will offer a win-win situation for projects and users" - Loxodrome's mission^[7]

ve(3, 3)

ve(3,3) is a concept designed to address the challenges faced by traditional DEXes in attracting liquidity to their platforms. Its core objective is to actively incentivize users to deposit liquidity into their preferred pools, rewarding them with protocol tokens that can be staked to compound interest, generating profits for all stakeholders - the protocol, liquidity providers (LPs), and users. ^[8]

Loxodrome's Backer

Loxodrome, initiated and funded by the Web3 incubator, is a community-owned protocol. Its development and operation are driven by members who actively participate in the community. This community-driven approach ensures that the interests and needs of the users are at the forefront of Loxodrome's evolution. ^[4]

DePIN

DePIN is short for Decentralized Physical Infrastructure Networks. It is an approach to infrastructure development, leveraging blockchain technology to manage and finance physical assets like telecom networks, energy grids, and transportation systems in a decentralized manner. Using tokens as incentives allows DePIN to encourage community participation in building and maintaining infrastructure, promising cost reduction, innovation, and collective ownership. ^[4]

Tokenomics

$LOXO

$LOXO is a utility token built on the ERC-20 standard, that strategically cultivates and fosters the protocol by incentivizing key roles through token emissions. ^[5]

The LOXO token has multiple purposes with the protocol. It serves as the token obtained for providing liquidity to liquidity providers (LPs) and is used to pay fees within the protocol. It empowers a balanced ecosystem between DeFi and DePIN offering projects a way to bribe and ensure liquidity is always maintained in their pool. ^[7]

$LOXO holders also get an opportunity to vote escrow their token i.e. lock them for a set period, in return for veLOXO which gives users governance power to perform different activities within the protocol. ^[7]

$veLOXO

$veLOXO is an ERC-721 governance token, representing a non-fungible token in the form of a NFT. It is used for governance purposes within the protocol. Any $veLOXO token holder can vote-escrow their tokens and receive $LOXO emission. ^[5]

The lock period of $LOXO tokens determines the amount of $veLOXO voting power received, with longer lock periods yielding more voting power. ^[5]

LoxoNFT

Introduced in January 2024, LoxoNFT is a limited edition NFT on the Loxodrome Protocol. It offers benefits and passive income opportunities to their holders. ^[9]

It has a total supply of 5000 and unlocks various revenue streams, such as trading fees, fair launch airdrops, and additional future rewards. ^[6]

By staking LoxoNFT, users gain access to exclusive privileges within the protocol that include a share of the trading fees generated by the platform. Additionally, LoxoNFT stakers are eligible to receive $LOXO emissions, allowing them to participate in the protocol's token ecosystem. The LoxoNFT may also serve as a gateway to special airdrops, granting their holders access to exclusive token distributions or opportunities within the protocol's ecosystem. ^[6]

The Loxodrome Flywheel

In the Loxodrome Flywheel, liquidity providers deposit tokens into pools and receive $LOXO emissions as rewards. Traders use the available liquidity to swap assets and pay a fee for these transactions. Participants and protocols lock $LOXO to gain governance power over $LOXO emissions, swap fees, and rebases. ^[11]

External projects offer bribes to incentivize liquidity provision for their pools. Based on these bribes, $LOXO lockers, or voters, direct $LOXO emissions to the respective pools, earning their share of the bribes and trading fees. This direction of emissions by voters incentivizes further liquidity provisions due to the potential for higher yields. ^[11]

Partners

• IoTeX

• Bedrock

• Magma Protocol

• U2DPN

• Inferix GPU

• mimo protocol

• WatchX

• U2U

• CRUST Network

• SkyX

• PinSwap

• NetLink

• TabbyPOS

• Nubila

• GainFi

• W3bstream

• PinGo

• Cluster Protocol^[1]