Internal Market

As part of land phase 1.5 we plan to build a first version of an internal Automated Market Making (AMM) system with a single trading pair of Grain and DEC. This would work very similarly to services like Uniswap on Ethereum or Diesel Pools on Hive Engine where players can add liquidity in equal dollar values of Grain and DEC which would then allow other players to swap one token for the other.

Each swap would have a 10% fee that is taken out in DEC and paid to the liquidity providers in proportion to the amount of liquidity they have provided compared to the total liquidity in the system. Some players may note that 10% is quite high for a swap fee, however this is very different than a typical DeFi token swap protocol.

As we are trying to model the land expansion loosely off of what a real-life, physical economy might look like in Praetoria, selling Grain involves things like labor, transportation costs, taxes, etc which are all part of the fee. In future phases the plan is that players within a region can contribute resources to improve the infrastructure in their region to get cheaper taxes and better transportation options and obtain lower fees as a result.

One interesting thing to note is that providing liquidity will be one of the only ways that players will be able to directly earn DEC tokens in the entire game.