Introduction

Dojoswap is a Uniswap-inspired automated market-maker (AMM) protocol implemented with smart contracts on the Injective blockchain. The protocol enables a decentralized on-chain exchange for various assets involved in the Injective ecosystem.

Users can participate in Dojoswap as traders, liquidity providers, or both. Traders have the ability to swap their tokens for different ones via Dojoswap, with the exchange rate being set by the liquidity pool's ratio.

Liquidity Provider

A liquidity provider boosts the liquidity of a Dojoswap pair by contributing an equal value of two assets to the pool, thereby increasing the market's liquidity without altering the pool price. As a reward for this contribution, liquidity providers receive newly created LP tokens, representing their stake in the pool. These tokens come with the advantage of earning trading fees, which accrue with each swap made within the pool.

When liquidity providers wish to withdraw their portion from the pool, they have the option to burn their LP tokens.

Dojoswap Exchange

Dojoswap Exchange is the official web front-end interface for swapping Dojo native tokens and CW20 tokens. A wallet is required to interact with Dojoswap.

Before executing a swap in the web application, your connected wallet must have source tokens and transaction fee. Once you generate a transaction in the proper format, it will prompt you to sign the transaction by entering your password.

Liquidity Pools

They consist of pairs of tokens locked into smart contracts, enabling users to trade one token for another without relying on an order book or centralized intermediaries.

Each pool contains reserves of two tokens, maintaining a specific ratio determined at the time of creation. For instance, in an INJ/USDT pool, both Injective (INJ) and Tether (USDT) are deposited in a predefined ratio, and the pool's smart contract calculates the exchange rate between these tokens.

Users contribute to these pools by depositing an equal value of both tokens, receiving liquidity provider (LP) tokens in return. These LP tokens represent their share of the pool and entitle holders to a portion of the trading fees generated on the platform.

Constant Product

The pool's automated market maker (AMM) mechanism adjusts token prices based on the ratio of assets in the pool. When someone swaps tokens, the trade directly impacts the pool's balance, leading to a change in the token prices according to the constant product formula

XY = k

where x and y are the quantities of the tokens in the pool, and k is a constant value that remains unchanged.

Pricing

In order to preserve the constant product invariant, Dojoswap will make prices that ensure the product of resultant balances of the pool is as close as possible to product calculated prior to the trade. With X being the current balance of the pool’s source asset and and Y being that of the target asset:

XY = k = (X + Ain) (Y - Bout)

To determine the proper value of Bout given the trader's offered asset Ain:

Bout = (Y Ain) / (X + Ain)

Dojoswap is able to execute trades with only the current balances of the pool and the number of incoming tokens. The market price is calculated by dividing the number of pool’s target token into the source asset (also called the pool ratio). The spread between the executed and the expected trade is:

spread = [(Y Ain) / X] + (Y Ain) / (X + Ain)

When a pool has large balances of tokens on both sides from liquidity providers, the spread becomes smaller and helps the pool execute closer to its reported price of Y/X .

Trading Fees

In Dojoswap, every liquidity pool designated for a permitted asset pair includes a set LP Commission rate. This fee, fixed at 0.3%, operates separately from the algorithmic price-making that establishes the spread. When a trade occurs, this fee is subtracted from the asset received by the trader as a deduction for utilizing the liquidity pool.

received = Bout(1 - FeeLP) - tax

The fee paid by traders with each trade returns to the specific liquidity pool as compensation for those providing liquidity. Liquidity providers have the option to withdraw the accumulated commission from the pool by burning the LP tokens they earned through contributing liquidity.

Breakdown of the fees will be:

• 0.15% fees for LP holders

• 0.10% buyback and burn of $DOJO

• 0.05% treasury fees for platform development

Fees sent to treasury will be reduced over time and redirected to buyback and burn of $DOJO.

Liquidity Farming

Dojoswap will build the first of its kind yield-farming ecosystem in the cosmos ecosystem. Avid users of the cosmos ecosystem would have realised by now that there are no comparable alternatives as opposed to the EVM ecosystem. For example, they do not have liquidity farming similar to the likes of Sushi, PancakeSwap, etc.

Dojoswap aims to invite a wave of yield-farming culture on Injective with well built open-sourced contracts. These will help other developers to also quickly bootstrap yield farms.

How it Works

Yield farming will be divided into 2 phases;

1. Pre-token launch phase

2. Post-token launch phase

At the pre-token launch phase, they will be allowing users to farm airdrop points by participating in yield farming with their LP tokens. All you need to do will be to stake your LP tokens into the yield farming contract. $POINT will be accrued for you on each block. Users will then be able to redeem $POINT into $DOJO at a predetermined ratio after launch of $DOJO.

After the launch of the token, users will be able to farm $DOJO tokens through the liquidity farming contracts. $DOJO token holders will gain access to governance rights on Dojoswap, alongside fee share.

$POINT Farming

$DOJO token will be launched once Dojoswap is running perfectly. The $DOJO token will have the following utilities:

• Vote-escrowed tokenomics for governance

• Governance to govern pool emissions

• Fee-share from swap fees

• Participation in project launchpools from partner projects

Based on the amount of $POINT you receive, you will be accorded higher amounts of $DOJO airdrop when it is released.

• Adding of liquidity. The longer you hold your liquidity, the higher your points. If you are the earliest to a particular liquidity pool, your points will be more so than others.

$POINT token address: inj1l73x8hh6du0h8upp65r7ltzpj5twadtp5490n0

$DOJO Tokenomics

Ticker: DOJO

Contract Address: To be announced

Chain: Injective

Token Supply: 800,000,000

Token Allocation

85.5% = 684,000,000 Community Liquidity Incentive (Farms/Pools)

2% = 16,000,000 (Launchpad)

0.5% = 4,000,000 (Liquidity Forming from Launchpad Proceeds)

6% = 48,000,000 (Marketing and Ecosystem Grant / Airdrops / Redemption of $POINTS)

- vest over 12 months

6% = 48,000,000 (Platform Expenses / Dev Expenses / Treasury)

- vest over 12 months

$POINT will be allowed for redemption into $DOJO at a later stage. There will not be any vesting but you will be able to redeem $POINT for $DOJO at a pre-determined ratio after launchpad.

The aim is to make deflation higher than emission by building deflationary mechanisms into DojoSwap's products. The goal is for more $DOJO to leave circulation than the amount of DOJO that's produced.

They will be reducing the block emission of $DOJO over time especially when $DOJO prices is going up. This helps to reduce inflation and create sustainability within the ecosystem, protecting price of $DOJO.

Tracking DOJO