$Ethix has proven to be a tangible utility token, used within EthicHub protocol as collateral for EthicHub farmers.
So far, a total number of 50.000.000 $Ethix (EthicHub: Compensation Reserve) plus 1.200.000 $Ethix staked by the community (EthicHub: Collateral) are being used as crowdcollateral.
51.200.000 staked $Ethix is equal to $10.000.000. Nevertheless, the total liquidity for $Ethix is less than $500.000 (split down into Ethereum, Celo, and Gnosis).
Said that one of the higher priorities for EthicHub is to start deploying more liquidity for the $Ethix token.
In order to attract more liquidity, the daily volume of $Ethix on different pools should be increased.
At the present moment, the 4% fees generated from the total volume of transactions are being used to buyback Ethix from the market once a month and the resulting Ethix are used to further capitalize the compensation system.
This one time big buy operation is always being arbitrated by non aligned bots so the value that should be created for the Ethix and the compensation system is being drained by non aligned bots.
This arbitrage bots are draining value from the liquidity pools every day when users buy significant amounts. Instead we have to do the arbitrage ourselves so the value is kept within the ecosystem.
In order to start expanding $Ethix liquidity we propose to use the protocol fees (on stablecoin) to be dedicated to increase Volume and Liquidity and hire a Market Making company thedexer.xyz to manage the deployment of this fees in creating more liquidity in the most efficient way.
In addition to preventing arbitrage bots value extraction, this will help us to increase $Ethix’s daily volume which will increase the pool’s profitability attracting more liquidity providers.
This in the first step of the $Ethix Empowerment Program, which aims to ensure the proper distribution of Ethix to the community, at the same time consolidate $Ethix itself.
EthicHub reserve & compensation system