To facilitate participant trading activity throughout the Xara City Ecosystem, an Exchange tool will be created on the Market Place platform. The Exchange tool shall enable participants to purchase XARA tokens to spend in-game by swapping USDT for XARA, with the price determined by an algorithm based on the proportion of tokens in the Launch Pads Liquidity pool - example; Uniswap.
In the case of the AMM, the exchange rate is determined by a smart contract. Users can get instant access to XARA, while liquidity providers (depositors into the AMM's liquidity pool) can earn potential income via trading fees. These rules are determined by the DEX - example Uniswap.
The Xara City Exchange tool could eventually evolve into a fully-fledged DEX to not only deal with XARA, but also facilitate swaps of NFTs, tokenized real-world assets, carbon credits, and more. Functionality of a DEX such as Uniswap includes:
- Swap USDT/XARA & ETH/XARA to spend in-game
- Fund Liquidity Pools to earn yield on trading fees
- Stake XARA to earn an APR
- Borrow or Lend through DeFi protocol
- Trade XARA on their trading platform
*Subject to your countries regulation
Xara City - Exchange (DEX) Video