Salty.IO SALT
Introduction
Salty.IO is an Ethereum-based decentralized exchange (DEX) with a distinct goal of revolutionizing the DeFi landscape by enhancing the efficiency and accessibility of cryptocurrency trading with a user-friendly focus.
Salty.IO introduces a pioneering approach to revolutionizing swaps by leveraging Automatic Atomic Arbitrage (AAA). This innovative system exploits market inefficiencies during swaps, generating profits that benefit liquidity providers and stakers while contributing to Protocol Owned Liquidity (POL) for the DAO.
Emphasizing complete decentralization from its inception, Salty.IO grants full control over parameters, regional exclusions, whitelisting, and contracts to its DAO. The platform introduces the SALT exchange token, an ERC20 token with a capped supply of 100 million, designed with limited emissions and deflationary mechanisms. SALT token holders can stake their tokens to obtain xSALT, which serves dual functions of yield generation and governance.
The DEX aims to conduct a “Fair Launch” where every member of the community has an equal opportunity to engage with its native token, which will be airdropped at the end of March. The project did not seek external investors for its launch and will not hold presales of its native token.
Salty.IO has undergone comprehensive audits by Trail of Bits and ABDK, with a third audit by Code4rena currently in progress. This meticulous preparation paves the way for its anticipated launch on April 1, 2024. As we proceed in this report, we will delve into the technicalities, user benefits, and strategic outlook of Salty.IO, highlighting its potential to be a game-changer in the DEX arena.
Market
Compared to established competitors like Uniswap and SushiSwap, Salty.IO distinguishes itself with zero-fee swaps and a unique revenue-sharing model that benefits liquidity providers and stakers. However, it faces significant challenges in gaining market share in an industry dominated by platforms with strong network effects and established user bases.
In terms of potential, Salty.IO’s success hinges on its ability to offer superior technology, maintain robust security, and ensure a high level of liquidity. The platform also needs to navigate the complex regulatory landscape of DeFi, as evolving regulations can significantly impact its operations and growth potential.
Additionally, the unique governance model via its DAO could attract a specific segment of the DeFi community seeking more decentralized and community-driven platforms.
Overall, Salty.IO’s innovative approach positions it as a potential disruptor in the DEX market. Still, its ability to become a dominant player will depend on its execution, user adoption, and ability to adapt to the rapidly evolving DeFi ecosystem.
Technology
Salty.IO’s technology framework, primarily driven by its unique and first-to-market Automatic Atomic Arbitrage (AAA), is tailored to create an efficient and profitable environment for its users.
Automatic Atomic Arbitrage (AAA): Salty.IO’s standout feature is its AAA system, which leverages the discrepancies in cryptocurrency pricing across different markets. This system is designed to operate automatically, generating profits from these real-time price differences – profits that would normally be extracted by external arbitrage bots.
Atomic Transactions: Arbitrage is executed atomically with user swaps, guaranteeing the completion of profitable trades without interruption or partial execution. This aspect is particularly significant in a market where speed and accuracy are paramount, and it helps secure the process against external manipulations and bots.
The Swap Process: Salty.IO integrates arbitrage automatically and seamlessly within user swaps. When a user initiates a trade (like swapping USD for ETH), the platform first performs the user swap at the expected rate. It then automatically checks for arbitrage opportunities and, if found, executes additional arbitrage trades to capitalize on these opportunities. This process occurs within a single efficient transaction, maintaining user experience consistency while optimizing for profitability. The combined swap and arbitrage are so efficient that they cost less gas than most simple swaps on traditional DEXes.
Distribution of Arbitrage Profits: The platform’s unique approach to handling arbitrage profits is a key element of its business model. A portion of these profits is allocated to liquidity providers and token stakers, another part contributes to the protocol’s liquidity, and a small percentage is designated for users engaged in the platform’s upkeep. This distribution model supports Salty.IO’s zero-fee trading structure, incentivizing participation and investment within its ecosystem.
Governance: Salty.IO’s governance is decentralized, with key decisions and parameters controlled by its DAO (Decentralized Autonomous Organization). The platform’s native token, SALT, plays a crucial role in this ecosystem, with mechanisms for staking, governance participation, and a capped supply to ensure value stability.
Salty.IO introduces a set of technologies and mechanisms that collectively aim to enhance the efficiency, profitability, and user experience in DeFi trading. The integration of AAA with user swaps and a strategic distribution of arbitrage profits, coupled with decentralized governance, positions Salty.IO as a potential innovator in the Ethereum-based DEX space.
Tokenomics
The tokenomics of SALT, Salty.IO’s native ERC20 utility and governance token, reveals a sophisticated approach to balance supply and demand to support the platform’s long-term viability and value proposition.
With a hard cap of 100 million tokens, the SALT token is positioned to maintain scarcity and demand. Of these, 50 million tokens are allocated for emission rewards that will be distributed to liquidity providers and xSALT holders, which incentivizes platform participation and enhances the network’s liquidity.
A critical feature of SALT’s tokenomics is the deflationary mechanism, where a default of 45% of the SALT rewards obtained by the DAO through Protocol Owned Liquidity (POL) are burned. This action effectively reduces the circulating supply, creating upward pressure on the token’s value over time.
Staking is a pivotal element of SALT’s ecosystem. SALT can be staked for xSALT at a 1:1 ratio, meaning for every SALT staked, one xSALT is received. xSALT is non-transferable, cementing its holders’ commitment to the platform. Unstaking xSALT back into SALT tokens entails a 52-week lock-up period, which reflects the platform’s focus on long-term participation.
There is also an option for expedited unstaking, but it comes with a penalty, returning less than the original staked amount, with the shortest period yielding only 20% of the staked SALT. This mechanism not only discourages short-term speculative behavior but also contributes to deflation as the unclaimed SALT from expedited unstaking is burned.
The DAO’s control over parameters related to staking and unstaking ensures adaptability and responsiveness to the platform’s needs and the broader market conditions. This governance model allows for adjustments that align incentives with the platform’s long-term success and community consensus.
The yield generated by the SALT/USDC POL also contributes to the token’s deflationary model. The default burn rate of 45% of SALT rewards from POL further tightens the token’s supply.
Overall, the design of SALT’s tokenomics promotes a robust economic model. It incentivizes user participation and investment in the platform’s governance and liquidity, while deflationary pressures aim to preserve and enhance the token’s value. This strategic approach will likely foster a strong, stable, and engaged user base, which is essential for Salty.IO’s growth and sustainability in the competitive DeFi marketplace.
Team & Investors
Salty.IO, an innovative project within the DeFi space, is the brainchild of Daniel Cota, operating under Othernet Global PTE LTD, a private company based in Singapore. This venture is a testament to Daniel’s dedication, who devoted 10-16 hours daily over a year to develop the protocol.
During this time, Daniel iterated, designed and coded the contracts by himself — all the while leveraging artificial intelligence as a constant collaborator, using it to help refine protocol ideas, brainstorm some of the nearly 500 unit tests, and review the smart contracts before their multiple audits.
This innovative use of technology reflects the project’s commitment to thoroughness and precision in its development phase.
Currently, Salty.IO operates independently, with no partnerships established yet. However, the project’s strategic planning includes allocating 2 million SALT tokens for advisors. This allocation indicates an openness to expert guidance and a willingness to incorporate external expertise into the project’s growth and development.
In terms of funding, Salty.IO stands out for its grassroots approach. The project has not engaged in any pre-sale events, nor has it sought external investors, emphasizing its commitment to a fair and equitable launch. This strategy aligns with the ethos of fairness in the cryptocurrency space, ensuring that the launch of SALT, the platform’s native token, is accessible and unbiased for all interested participants.
Airdrop
Salty.IO is set to conduct a significant airdrop, distributing 5 million SALT tokens to a wide user base, a move designed to amplify awareness and broaden token distribution.
The airdrop is structured to include users from specific groups, with additional whitelisting opportunities to be announced later. This event is a promotional strategy and a way to encourage diverse participation in the platform’s ecosystem.
Target Groups for Automatic Whitelisting:
- Uniswap v3 Liquidity Providers: Users who have held liquidity from November 26, 2022, to October 17, 2023 — totaling 10,000 unique wallets.
- Uniswap Governance Voters: Individuals who participated in governance votes from Dec. 21, 2022, to Oct. 20, 2023 — totaling 10,000 unique wallets.
- AAVE Depositors: Users who have made deposits between April 4, 2022, and Oct. 17, 2023 — totaling 10,000 unique wallets.
- AAVE Governance Voters: Those who voted in governance up to Oct. 17, 2023 — totaling 9,100 unique wallets.
- Bankless Badge POAP Holders: Holders up until Oct. 17, 2023 — totaling 3,900 unique wallets.
- MakerDAO Vault Holders: Individuals holding vaults up to Oct. 19, 2023 — totaling 2,300 unique wallets.
The airdrop recipients will participate in voting scheduled between March 20 and March 29, adding a layer of community involvement in the decision-making process. Interested participants can verify their eligibility by visiting the designated #airdrop-verification channel on Salty.IO’s community platform.
Due to regulatory and compliance reasons, users from certain regions, including the United States, Canada, the United Kingdom, China, India, Pakistan, Russia, Afghanistan, Cuba, Iran, North Korea, Syria, and Venezuela, are excluded from the airdrop.
This airdrop strategy highlights Salty.IO’s commitment to engaging with and rewarding active participants in the DeFi space while ensuring a broad and fair distribution of tokens. The inclusion of various user groups from prominent platforms like Uniswap, AAVE, and MakerDAO signifies a targeted approach to reaching users who are already engaged and knowledgeable in the DeFi ecosystem.
Audits & Security
Salty.IO’s security has been thoroughly vetted through multiple comprehensive audits, showcasing the team’s proactive approach to safeguarding the platform. The DEX has spent approximately $360,000 on ensuring its security and code are up to par.
The audit by Trail of Bits, conducted over three weeks, focused on critical components such as pools and staking mechanisms, where they identified and advised on several high-severity issues. Salty.IO promptly resolved all major issues found by the audit.
Similarly, ABDK’s audit found nine major issues and confirmed the DEX resolved all of them, reinforcing confidence in Salty.IO’s commitment to security. Meanwhile, Code4rena is conducting a third audit on the DEX, which is currently in progress and is set to be completed in February 2024.
This rigorous audit series, conducted well before the platform’s launch, signifies Salty.IO’s dedication to user safety and platform reliability in the ever-evolving DeFi space.
Risks & Opportunities
Opportunities:
- Innovative Features: Salty.IO’s introduction of Automatic Atomic Arbitrage (AAA) and a deflationary token model are innovative in the DeFi space. These features can attract users seeking efficient and cost-effective trading options, potentially increasing the platform’s user base.
- Market Potential: As the DeFi market grows, platforms offering unique and user-friendly solutions, like Salty.IO, have significant potential to capture market share.
- Community-Driven Development: Salty.IO’s DAO model for governance can create a strong community of users who are invested in the platform’s success, fostering a sense of ownership and participation.
Risks:
- Market Competition: The DeFi space is highly competitive with established players like Uniswap and SushiSwap. Gaining a substantial user base and liquidity against these incumbents is a significant challenge.
- Complexity and Security: The innovative nature of Salty.IO’s features, while a strength, also brings complexity, which could lead to potential security vulnerabilities despite the audits conducted.
- Regulatory Risks: The evolving regulatory landscape of cryptocurrency and DeFi could pose risks to platforms like Salty.IO, impacting its operations and growth potential.
Long-Term Success
The long-term success of Salty.IO will depend on its ability to balance its innovative features with user accessibility, maintain stringent security standards, and adapt to the ever-changing DeFi landscape and regulatory environments. Building a strong community through its DAO and consistently innovating in response to market needs will also be crucial in solidifying its position in the market.
Conclusion
Salty.IO holds notable potential as a unique DEX in the cryptocurrency market, primarily due to its innovative technology and strategic approach. Its implementation of Automatic Atomic Arbitrage (AAA) and a deflationary token model sets it apart, potentially offering more efficient and cost-effective trading options. The platform’s focus on security, demonstrated by multiple pre-launch audits, enhances its credibility and user trust.
However, Salty.IO’s success will depend on several factors. Its ability to balance innovation with user-friendliness is crucial for broader adoption, especially among less tech-savvy users. The platform faces stiff competition from established DEXs, and its ability to attract and retain a substantial user base in this environment is key. Additionally, its reliance on the Ethereum network could pose scalability and transaction fee challenges.
Given these considerations, Salty.IO’s future as a significant player in the cryptocurrency market seems promising but contingent on its adaptability, market reception, and ongoing commitment to innovation and security. If it can navigate the complex DeFi landscape and regulatory frameworks effectively, Salty.IO could position itself as a formidable contender in the DEX space.
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