DEX Introduction
Colony's DEX is a vital element of the Liquid Vesting solution, seamlessly integrated into the Early-Stage fundraising platform. Powered by the UniV2 AMM and enhanced by custom contracts, it executes various Liquid Vesting mechanisms, facilitating smooth trading of locked/vesting tokens through ceTokens.
Designed with scalability in mind, Colony's DEX automates the creation of liquidity pools with initial liquidity and associated farms immediately after the fundraising phase concludes. This strategic automation ensures swift establishment and funding of liquidity pools and farms upon project transition to the Portfolio section. Consequently, initial liquidity is promptly bootstrapped to new pools at the precise project price point, aligning with the seed or private sale price of the project’s token offered on the Early-Stage Program.
Users who participated in sales on Colony's Early-Stage Program, will be able to trade their ceTokens directly on Colony's DEX official pools: ceToken/AVAX. The DEX enables users to either sell their early allocation acquired on Early-stage NEST or buy more. Additionally, it allows users who missed a fundraise on Colony or couldn't participate due to KYC restrictions to directly purchase seed/private sales ceTokens allocation from other investors on Colony's DEX. Colony's DEX incentivizes ceTokens holders to provide liquidity by pairing their ceTokens with AVAX, since 10% of the total ceTokens of a project will be provided as rewards for the liquidity providers on the trading pools ceToken/AVAX. (Check ceTokens distribution for more information).
By providing liquidity and staking their LPs, users unlock a boosted APR in ceToken rewards. This process enables users to maximize their ceTokens allocation, thereby increasing their ability to swap for additional native project tokens over time.
To dive deeper into Colony's DEX, explore the tutorials below:
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