Is Ethervista a rising star or a flash in the pan in DeFi, with a return of 134 times?

Author: Revc, Jinse Finance

Preface

According to data tracked by Lookonchain, frenulum.eth earned 274 ETH (about $696,700) through trading VISTA in 2 days, with a return rate of 134 times. Frenulum.eth only spent 2.05 ETH (about $5,100) to buy 52,822 VISTA and sold them at a price of 276.5 ETH (about $701,800). At that time, VISTA’s 24-hour increase was nearly 1100%.

Ethervista is a new Decentralization exchange (DEX) protocol designed to address the shortcomings of the existing AMM model (short-term Token price speculation and insufficient incentives for Liquidity Providers). By introducing a custom fee structure and a new reward allocation mechanism, Ethervista seeks to promote the long-term rise and sustainability of blockchain projects.

Mechanism Features of Ethervista (Brief Version):

• Custom Fees: Ethervista uses a custom fee structure that is only paid with native ETH, enabling more flexible fee allocation.
• Reward Distribution: The protocol allocates fees between Liquidity Providers and Token creators based on volume, incentivizing long-term utility rather than short-term price behavior.
• protocol fees: a portion of the fees are allocated to the Smart Contract designated by the protocol, thus supporting various Decentralized Finance applications and providing sustainable income for creators.
• Liquidity Provider Rewards: Liquidity providers are rewarded based on their contributions to the pool and total volume.
• Creator Function: Creators can configure pool settings, define Metadata, and even restrict Token transfers.
• VISTA Token: The native token of Ethervista, with a limited supply and Deflation mechanism.

Technical Overview:

• Euler (reward calculation unit): a series of incremental numbers used to calculate the rewards based on the contribution of Liquidity Providers and the total volume.
• Cost Allocation: Costs are allocated between Liquidity Providers and the protocol based on predefined variables.
• Protocol fee allocation: Protocol fees can be allocated to smart contracts of various Decentralized Finance applications.

Ethervista Design Concept

**Ethervista uses a custom fee structure that is only paid in native ETH, enabling more flexible fee allocation. The current AMM standard charges a 0.3% token fee for each swap. Ethervista Standard is the first to set a custom fee that is paid only in native ETH. This fee is distributed to all Liquidity Providers and Token Creators in a specific pool, and each swap uses a new mechanism that allows Ethervista to distribute rewards to millions of users with minimal gas cost.

The creator fee, as part of the protocol fee, can be allocated to Smart Contracts and the treasury. Various use cases include automatic purchases, stake rewards, and many other Decentralized Finance applications. A key feature of this model is that liquidity providers and creators benefit from volume rather than token prices, incentivizing long-term rather than short-term price behavior. Investors benefit from the Liquidity removal mechanism of latency, preventing developers from quickly performing “Rug Pulls”. This approach not only reduces the risk of sudden market turbulence but also improves the overall success rate of their investments. Ultimately, Ethervista will shift towards building the ETH-BTC-USDC pool to provide loans, futures, and feeless Flash Loans, aiming to become an integrated Decentralized application.

protocol fee allocation method

As mentioned earlier, native ETH fees are charged for each exchange, which are allocated between Liquidity Providers and protocols. Each pool must initialize four uint8 fee variables corresponding to the fee allocation for buy and sell transactions. These variables correspond to the USDC amount and use an on-chain Oracle Machine to calculate the corresponding ETH fees for each exchange. For example, a pool can be initialized with fees of $10 for buying and $15 for selling. When a user decides to sell their Tokens, they must now pay ETH worth $15 to the protocol and Liquidity Providers.

The Smart Contract allocated by the protocol can use the fee to increase the permanent lock Liquidity, establish a continuously rising floor price for the Token, and provide sustainable income for the creator. Liquidity Providers can immediately claim a share of the rewards collected from the exchange.

Calculation Method of protocol Fees

Ethervista maintains an ascending numerical sequence called Euler amounts for Smart Contracts. These values are updated every time native ETH is transferred to the Smart Contract. Each Euler amount is determined by adding the previous Euler amount with the ratio of fees to the total supply of Liquidity Provider Tokens (LP) at the current Liquidity. The initial Euler amount is set to zero.

In mathematics, this update can be represented as:

fee Eulern=Eulern-1+ LP supply

Formula (1) as shown in the following figure, has a corresponding ascending sequence:

Euler, Euler2, Euler3, Euler… Eulern}

Each provider is represented by a struct that stores the LP holdings of each user and a variable named euler0, which is named after the Euler amount in the sequence.

struct Provider { uint256 1p;

uint256 eulero; };

As shown in the figure, the uint256 number represents the latest Euler amount in the sequence when the user adds Liquidity. Assuming the user decides to claim the reward after 1000 swaps. At that moment, the latest Euler amount is Euler_n + 1000. The exact amount of reward accumulated by the provider during this period is Reward_lp * (Euler_n + 1000 - euler_0).

In the above formula (2), this method assumes that the LP balance remains constant throughout the period. Therefore, whenever the provider takes any action, such as adding/removing Liquidity, the variable euler0 will be refreshed to reflect the latest Euler amount in the sequence. This measure prevents Liquidity providers from manipulating their own reward share. Therefore, it is recommended that Liquidity providers always claim rewards before adjusting the LP balance. LPToken is not transferable unless it is destroyed or added/removed from Liquidity.

The essence of this mathematical approach lies in its ability to accurately determine the share that each user receives in each exchange, regardless of the continuous changes in the total supply of LP tokens due to the addition or removal of Liquidity by Liquidity Providers.

Liquidity Pool Configuration and Incentives

The person who initiates Liquidity provision becomes the creator, giving them write access to configure pool settings. This includes determining pool fees, protocol Address, and Metadata. The key parameter is the Smart Contract Address allocated by the protocol. While this parameter is optional, it defaults to the creator’s Address. Subsequently, this Address receives ETH from the protocol fees and is managed through custom logic of the Smart Contract, enabling various Decentralized Finance applications that were previously impossible under the current AMM standard. This new way of generating revenue shifts the focus from primarily prioritizing short-term gains and price behavior to primarily prioritizing activity, longevity, and practicality.

Creators can define on-chain metadata for their tokens, including website URLs, logos, project descriptions, social media handles, and chat URLs, and other details. Users can access this information through the explorer window of Ethervista DEX and other related details. This allows creators to effectively showcase their projects while ensuring that users can access verified and secure information, reducing the risk of phishing attacks. Developers can seamlessly launch their projects on Ethervista using the integrated launcher window. Ethervista also has a SuperChat feature, a global real-time chat directly integrated into the DEX platform, allowing users to exchange information quickly. Access to SuperChat is rank-based, depending on the amount of VISTAToken held by the user.

Creators can also choose to relinquish their write access, effectively permanently locking all settings. They want to restrict their Token transactions to Ethervista, the creator of ERC20 transferFrom function, can limit it to Ethervista router Address.

In addition to the pool and protocol fees, there is also a fixed $1 fee allocated to the ongoing development of Ethervista DEX and SVISTA. This fee will be used to implement feeless Flash Loans, futures and lending functions, as well as to support potential CEX listings and marketing activities.

VISTA****Token Economic Model

SVISTA is the native currency of DEX, with a total supply of 1 million Tokens. Ethervista is a value-pegged deflationary Token. The Smart Contract of Ethervista protocol implements an on-chain process, where each burning event not only reduces the circulating supply, but also gradually increases the floor price of the Token. This effect is maintained by continuously acquiring and burning Tokens, which are funded by the fees generated by the protocol in each transaction. Therefore, the mechanism of VISTA acts as a Hedging against inflation by combining activity with supply reduction and rising floor price, thereby strengthening the value of VISTA in each transaction, driving sustained rise and scarcity.

According to the latest data disclosed by Ethervista, 2.17% of the total supply of VISTA has been permanently repurchased and destroyed.

Ethervista Future Plan:

• Expansion of the liquidity pool: Ethervista plans to offer lending, futures, and feeless Flash Loans.
• Integrated with CEX: Ethervista aims to list on Centralized Exchange.

Summary

The design of Ethervista mainly revolves around repurchase and Lock-up Position, collecting transaction fees and providing Dividend to Liquidity Providers, reducing selling pressure, but the premise of Dividend is based on the protocol having a large number of transactions, such designs can trigger FOMO emotions in the short term, but are not sufficient to support the long-term value of the protocol. Currently, Decentralized Finance protocols should not only focus on optimizing the price curve formula, but also combine innovation at the scenario and asset levels. In addition, developers of the Ethervista pool can reserve Tokens, and investors should be careful in their selection. The risk of contracts not being Open Source also needs to be vigilant.

Due to the lock-up period, Liquidity cannot be freely traded. If holders sell a large amount after unlocking, it may deplete Liquidity and lead to a significant price drop risk.

According to the latest data from Dexscreener, Ethervista’s circulating Market Cap has fallen to 1740 million US dollars, with a 76% increase in Token in the past 24 hours, and a volume of over 5300 million US dollars in the past 24 hours. The volume exceeds its Market Cap, indicating that the project is very popular, and the Turnover Rate is frequent, so we also need to be vigilant about market Fluctuation risks.