Every now and again, I stumble across an existing DApp, token, or yield farm and take a look. Today, I uncovered a new project to me, but one that’s been around for about a month (an eternity in DeFi).
Tokenlon - Decentralized, mobile trading app that acts as a decentralized broker, and sources liquidity from several decentralized exchanges (see the flow chart below).
The protocol is being bootstrapped by rewarding traders, liquidity miners, and stakers with LON tokens. Tokenlon fees are used to buy back LON from the open market, and those tokens are distributed to certain holders and the Tokenlon treasury. The LON token Dashboard shows the statistics about circulating supply, current yield farms, emissions, and a new staking token, xLON.
xLON is a new token that popped up via Nansen today. It’s staked LON that accrues rewards just by sitting in a smart contract. Staked tokens are often a mechanism for locking supply and can lead to an increase in price. A recent example of this is xSUSHI, which is one of the most valuable and versatile staked tokens in DeFi.
x-tokens are all the rage because they auto-compound rewards and don’t require claiming/re-staking, which can be an expensive set of transactions on Ethereum. Bankless did a great writeup on xtokens recently, and traction is picking up across the DeFi ecosystem.
Give Tokenlon a try and let me know what you think!