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Long.xyz Founder: At this stage, greater emphasis is placed on asset distribution and scale growth rather than fee sharing or high-yield incentives
BlockBeats reports,September 24, Nate, founder of Long.xyz, a Robinhood on-chain stock meme coin issuance platform, published an explanation of LONG's mechanism for building liquidity around tokenized-stock trading pairs. He said that the main issue in the current crypto market is not a lack of trading activity, but a lack of stability; deep liquidity can raise the cost of market manipulation and concentrated supply while helping the market absorb extreme volatility. Stock trading pairs can serve as a secondary market for tokenized stocks, enabling liquidity providers to participate in trading, arbitrage, and subsequent applications such as lending.
Using the AI/NVDA trading pair as an example, when NVIDIA shares rise by 20%, the value of NVDA in the liquidity pool USD will likewise rise to approximately 1.2 times; selling the same amount of AI can yield a higher USD value, although the actual effect depends on liquidity depth. Arbitrage activity among AI/NVDA, AI/USDG, and NVDA/USDG is used to keep on-chain implied prices aligned; the deeper the NVDA liquidity in the pool, the more stable the arbitrage process.
Nate said LONG currently places greater emphasis on asset distribution and scale growth than on immediately delivering high returns to holders through fees or dividends. Once asset scale expands, value may be returned to holders through dividends, voting rights, or accumulation of NVDA, among other methods. He said the team had separately provided liquidity worth approximately 200000 USD to the AI/NVDA pool and LongX-related assets; if included in the community treasury, the value of its NVDA holdings could increase by approximately times.
Regarding high-tax trading pools and holder-dividend mechanisms, Nate said such models can easily be replaced by low-fee pools and depend on highly concentrated and active liquidity management. LONG therefore will not support such mechanisms by default, instead seeking to encourage long-term holding through stock linkage, liquidity, and organic growth.
Original link https://m.theblockbeats.info/flash/368776