https://etherscan.io/tx/0x037fb14cad0e8906759fdc1ad28c88774ee33a39f4bd714d12be9b9dc02e82ee
X7 finance currently has four sources of revenue:
- Token trading fees (on X7R, X7DAO, X7100 series tokens)
- NFT Mint fees
- Initial Liquidity Loan origination fees and premiums
- Xchange pair LP fees (0.1%)
Sources 1-3 are handled trustlessly by smart contracts.
Xchange LP fees, however, require some judgment as to when to remove the LP and on which xchange to liquidate the received tokens.
For example, we removed the accrued LP fee tokens for the WETH/Spurdo pair in this transaction https://etherscan.io/tx/0xd1221c93940facde573126aed0afa9b8fb621af381b156102b853a47f8f5362a. We then would have a choice of either swapping Spurdo tokens on the Xchange pair, on the UniswapV2 pair, or holding those tokens indefinitely based on possible market moves. The incentives that X7 has to maximize profit on these transactions will not always be aligned among all DeFi actors, so this is currently both trustful and permissioned.
In the future we may find ways to abstract these decisions in a way that can at the very least make them trustless and possibly make them permissionless.
But for now, this is a managed activity.
The 0.305538965712536 ETH transfer into the Ecosystem Splitter (https://etherscan.io/tx/0x967cfc598cab83d72375a6fa338a3809a4634a850d34a5a62d8aaf6b921c6dac) represents a managed delivery of LP fees from the ecosystem less the fees needed to run the transactions.
The more volume done on Xchange pairs and the deeper the liquidity (and hence trading capacity), the higher value these fees will be. These above transactions are meant as more of a proof of concept to demonstrate the earnings potential of this fourth source of income.
