Why I'm long on Smardex (SDEX)
SmarDex is a DeFi platform offering a stablecoin (USDN) and a decentralized exchange with innovative features like Volatility Vaults to mitigate impermanent loss and bridge traditional finance with DeFi.
You almost never start valuing a company or stock with a blank slate.
All too often, your views on a company or stock are formed before you start inputting the numbers into the models and metrics that you use and, not surprisingly, your conclusions tend to reflect your biases.
Professor Aswath Damodaran
TLDR :
🚨 Two things everyone tried tor create but no one succeeded:
— WhalePump Reborn (@WhalePumpReborn) August 19, 2024
1. A decentralized Perpetual ETH with native on-chain leverage
2. A decentralized Synthetic Dollar with intrinsic yield@SmarDex is doing both, powered by $SDEX.
Don't miss out.
DeFi season loading. https://t.co/KT5CQYx9po
Why Smardex is superior to Ethena ?
Did you know? Ethena's 'decentralized synthethic dollar' is not decentralized and isn't a synthetic dollar but a synthetic USDT.
— SMARDEX.io (@SmarDex) June 11, 2024
Basically, USDe is USDT with many risks on top.
Dependency on USDT, Not USD: A Critical Risk for USDe
Ethena’s USDe is not directly tied to the US… pic.twitter.com/X0gDv81emB
Where does USDN yield come from?
Let’s talk about $USDN, a fancy way to have stable dollars while earning yield (a.k.a. free money). 🥰
— SMARDEX.io (@SmarDex) January 28, 2025
But where does that yield actually come from? Is it magic? Is it sketchy? Sir, what about LUNA????!!
Let’s dive into how USDN generates yield and why it’s a secure and… pic.twitter.com/rou6K3MkIY
- Revolutionary protocol : Smardex reduces Impermanent Loss (IL) or even solves the problem, sometimes even transforming it into Impermanent Gain (IG).
Impermanent loss
Impermanent loss happens when you provide liquidity to a pool, and the value of your deposited assets changes compared to the market.
Example:
You deposit 1 ETH and 100 DAI in a liquidity pool (assume 1 ETH = 100 DAI). If ETH price increases to 200 DAI, the pool automatically rebalances, and you might end up with 0.7 ETH and 140 DAI when you withdraw. This is because the pool sold some of your ETH to buy more DAI to maintain a 50/50 value ratio.
If you had just held onto your 1 ETH and 100 DAI, you'd have a higher value now. This difference is called impermanent loss.
It's called "impermanent" because the loss is only realized when you withdraw your liquidity. If the prices return to the initial ratio, there's no loss.
- Healty tokenomics : No ponzinomics here! Farming revenues are boosted, attracting Liquidity Providers (LPs). USDN yield com from funding rates and Staked Ethereum in this way Smardex can gain market share by being attractive for Liquidity Providers.
What's the point of having USDT when you can have yield directly inside your wallet? I suppose the answer will soon be obvious when USDN will be adopted by major CEXs and DEXs.
- Best prices for swaps !
- Growing TVL (Total Value Locked)
TVL (Total Value Locked)
TVL (Total Value Locked) is the total value of crypto assets deposited in a DeFi protocol.
What it tells you:
- Popularity and health: Higher TVL usually means a protocol is doing well.
- Market share: Helps compare protocols.
- Security audits by leading firms
- Source code protected
- Withstands downtrends well and performs superbly in bull markets
- Token burn
- Significantly lower costs than Uniswap
- Deployment on other channels (Arbitrum, Polygon and more)
- Upcoming listings on major CEX. Already listed on Bitget, Swissborg, MEXC and Gate.
- Strong Community (Spartans)
- Hidden Gem : (Low cap)
- ETH perpetual contracts
- And even more to come with Smardex AI : Personal Financial Advisor (made in collaboration with WhalePump).
Where to buy SDEX ? BitGet (affiliated link) or Swissborg for an easier interface (if you live in Europe).
This is my analysis, please DYOR (Do Your Own Analysis) before buying an asset.
