https://etherscan.io/tx/0x0c4b1239306c9cbfd3d16130f3421c4f7fc39a588ec9a7ee9920d9260e710da3
Q: Is it possible to launch on Xchange without leveraged liquidity? A: It will be entirely possible to launch on Xchange without leveraged liquidity. When Xchange goes live we will not have a liquidity lock partner. However, we think that a clear opportunity exists to provide a low cost, integrated LP token lock solution that can be surfaced within the Xchange UI. While LP token locks do not guarantee safety, they are most certainly one standard element in DeFi that can be used to decrease risk.
Q: Will we be swapping out our own contracts liquidity to utilize X7 LP's, i.e. X7R and X7DAO? A: This is definitely something that should be done. The existing LP tokens are locked in the X7TokenLocker contract. We will provide an LP migration contract to migrate the liquidity for when the lock expires. We expect by the time the lock expires the decision to proceed will ultimately be up to the DAO. The X7 Devs will however author relevant contracts and make the relevant DAO proposals to drive the process. The X7TokenLocker was designed with this sort of trustless use case in mind.
Q: Is there a minimum liquidity pair value to get started? (Can I deposit 0.01ETH and have 10ETH?) A: The current lending terms that will be deployed initially will allow for 10x leverage within preset minimum and maximum lent liquidity with a goal of maximizing lending pool utilization and capacity. As outlined in the whitepaper, the various available loan terms will be something that we will iterate on and add to over time, both in terms of leverage and in terms of minimum and maximum loan amounts. This is highly market driven and we expect it will be a major product management activity as we provide loan terms that fit various market segments.
Xchange Initial Liquidity Loans are useful for the opportunistic, short lived, degenerate market (a market segment overlooked by many non-defi-natives).
Xchange Initial Liquidity Loans are also useful for real world businesses looking to make a large market for business. In this context, Initial Liquidity Loans are a DeFi version of IPO underwriters and market makers. We think real world businesses - a restaurant, a coffee shop, a production company - could put up $10k, make a market for their token starting at $100k and allow for retail investors to participate in the financial side of their business while providing initial capital. This use case is almost impossible to support without a form of pseudo-undercollatoralization. Xchange is able to support this use case for the mass market.
