The Heartbeat of Cardano.

WingRiders: A L1 Decentralized Exchange Built on Cardano

WingRiders is a decentralized exchange (DEX) built on top of Cardano’s layer 1 (L1), without the use of sidechains. 

The goal of WingRiders is to be an infrastructure element for the entire Cardano ecosystem, with simple integration into any wallet or Dapp, and to be accessible through many platforms, compatible connectors, and hardware wallets such as Ledger or Trezor. 

Why the name WingRiders? The Wing represents a symbol of freedom, while the Riders represent the group of strong heroes who help each other and are the community. 

Anyone can be a Rider and support other Riders and the ecosystem. The protective helmet represents the commitment to privacy. 

WingRiders launched its platform on Mainnet on April 12, 2022, and at the time of writing, WingRiders has climbed to the second position of Total Value Locked (TVL) with almost 30% of the total TVL in Cardano, after de Minswap and beating SundaeSwap. 

News: Cardano-Based Decentralized Project Faces 8,000% Increase in TVL in Last 7 Days

A DEX does not require a central authority to participate and develop its operation. Because of this, a DEX differs in format and configuration from a “centralized exchange” such as Binance or Bittrex, which have a central organization in control. Remember that staying on an exchange has its risks: “not your keys, not your cryptos”.

A DEX is fully automated or with a P2P element, meaning the platform is largely self-governing, with blockchain token swap transactions on the native platform.

WingRiders is the first DEX platform on Cardano that supports Hardware wallet: LEDGER on WingRiders via Direct interface!

WingRiders: The Layer 1 DEX AMM Model

The two most common types of DEX protocol models are, DEX AMM (Automated Market Maker), which has become the standard form, where exchanges are controlled by smart contracts to regulate the liquidity of the liquidity pools, and DEX of the Order Book protocol, which contains the purchase and sale orders of the users, and matches them for their execution. 

An AMM DEX uses liquidity pools, which are pairs of tokens locked to ensure there are always funds to trade, where investors allocate tokens to farm, paid for with trading fees. This is different from the Order Book model, which matches sellers with buyers via “shortest path matching” or some other protocol, without liquidity pools. 

Cardano, with its stakepools, adds additional benefits to using an AMM model, due to the staking culture of the community and the design of the blockchain. WingRiders chose this protocol for these reasons.

WingRiders intends to be fully functional on the Cardano mainchain, with no use of emerging sidechains. This is because, in the long term, the team believes that a sidechain fix could affect the performance of a DEX or present obstacles for users. 

The team argues that the use of a sidechain also opens up new attack vectors from a security perspective, because it relies on an unproven long-term chain. 

Tokenomics

The WingRiders Token (WRT) is the instrument to participate in Yield Farming and governance. 

Because of this, the key element is that the token is acquired in a distributed way in the community, from the beginning, and this is the reason for the upcoming minor allocations in the Public Sale rounds. 

The token can be acquired through three methods:

  1. By participation in the WingRiders Token Generation Event (“TGE”) and its sales cycles.
  2. Already and for a long time going forward farming rewards for providing Liquidity to the platform.
  3. Potentially through community development claim drops or other activities TBD.

Tokenomics and token distribution are described in the table below.

The whitelist is open to secure a space for the WingRiders community to purchase WRT tokens. Who can participate in the whitelist?: Whitelist Rules & Requirements

Governance 

The platform is being built to be governed purely by a DAO (Decentralized Autonomous Organization), fully autonomous, managed by the community through the platform’s governance token, WingRiders Token (WRT), by which the holders can participate in the governance mechanism. 

It must be emphasized that input and decisions are already being gathered from the growing community in this pre-DAO phase. The community can vote in opinion polls during the pre-DAO phase on Discord. Members of this community, who also hold government tokens and participate in voting, will be members of the DAO.

If you want to know more about DAO, I leave an article at the end (1).

Governance will address:

  • Updates: The initially released version will probably not be the most optimal, given how quickly the ecosystem is evolving. They plan to iterate on the best solution for the widest possible audience, and ease the transition to new versions as safely as possible.
  • Rates: control commissions and their distribution between liquidity providers and other entities.
  • Staking: ADA delegation locked in scripts to staking pools, should be governed by LP (Liquidity Pool) token holders.
  • Rewards: A portion of the project tokens will be set aside as a reward to liquidity fund providers for locking their funds in LPs for an extended period of time.

Yield Farming

WingRiders allocated 1.6% of their total token supply (equivalent to 1,600,000 WRT) towards the first month of yield farming. If during this first month, the overall TVL exceeds $125 million for at least 3 consecutive days, an additional amount of up to 0.5% (equivalent to 500,000 WRT tokens) can be allocated as farming rewards.

There are stages to get the rewards:

Inception Farming Epoch (IFE)

This manual period started on day 1 of the live platform and ended on Wednesday, April 20, 2022 at 21:45 UTC.

During this period, 350,000 WRT was allocated to liquidity providers who provided liquidity and their Liquidity Pool Tokens (LPT) were kept on deposit. 

Regular Farming Epochs (RFE)

This period will last from Wednesday, April 20, 2022 at 21:46 UTC to May 15, 2022 at 21:45 UTC.

It will be divided into 5 epochs, each lasting 5 days and reflecting the regular Cardano staking epochs.

During this period of 5 epochs, 1,250,000 WRT will be allocated proportionally (250,000 WRT every 5 days) to all the people who contribute liquidity and keep their LPT deposited in any of the available Farms. 

More information on yield farming: Yield farming.

The Roadmap

RACING FOR THE STARS

  • Launch on mainnet ✔
  • Introduction of stable coins ✔
  • Platform begins to integrate additional wallets and features
  • Sale
  • TGE launches
  • DAO principles and voting
  • First projects and dApps provide their initial liquidity / listing

Audit

Publicdevelopment has an external audit from CERTIK, with very good results:

It is to highlight an event that occurred in the Cardano community, which shows solidarity among developers: How the WingRiders team saved MinSwap from being hacked

The Team

The project is powered by VacuumLabs, one of the most respected developers in the Cardano space. 

The company has been developing on Cardano for 4 years, and its best known product is AdaLite, one of the first Cardano wallets, along with official wallets, IOHK’s Daedalus and Emurgo’s Yoroi.

Since 2012, its collaborations include startups, scaleups and leading companies, with more than 350 professionals collaborating from 8 offices in Europe, Asia and the United States with the aim of creating products that improve lives and advance financial technology.

They work on fintech projects spanning from Singapore to San Francisco. As a result, they develop unique projects such as Doconomy, Yoroi, Mox, or Daylight. See here.

Among its main members, it has in its ranks:

White Paper: https://assets.wingriders.com/whitepaper.pdf 

Website: https://www.wingriders.com 

(1) Decentralized Autonomous Organization (DAO): The Brief History, Challenges, and Lessons Learned

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  1. Muy buenas Liberlion, the information that you post is really good and makes a “dinasour” like me, over 50 years, learn about that is going on and what is going to happen!!!keep it up, and thank you to you and to the whole team. The key is always team work. Slds Cordiales desde España!!

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