Before the trend of food-themed DeFi protocols, we can remember the craze of the burning bomb tokens. It was only a matter of time before a project decided to unite the two trends together. Meet RottenSwap and ZombieChef, a carbon copy of SushiSwap, with some deflationary twists.
What is RottenSwap?
RottenSwap aims to capitalize on the DeFi craze of providing rewards for staking Uniswap LP tokens. Like numerous other protocols, the team has taken the smart contracts built by Chef Nomi and added in their little tweaks.
The big change is that Rotten Token, the clone of SUSHI, is a deflationary token. On every transfer of ROT, 2.5% of the amount is burnt and turned into MAGGOT tokens. It is believed MAGGOT will be used for governance voting. This two token ecosystem is an idea for RottenSwap to avoid the inflationary concerns of SushiSwap. The concern is that too much SUSHI is being minted, and without any total supply cap, it puts a real negative pressure on the token’s price. ROT’s idea to remove the sell pressure is to destroy a percentage on each transfer, hopefully, creating a balance that will allow sustainable growth.
Strategic pool choices… Another change is that the team has elected to incentivize liquidity providers of the ROT token itself. As a result, there is a lower risk of whales using their existing assets to simply farm and dump Rotten Tokens.
- RottenSwap has no pre-mined dev share, avoiding the issue of the anonymous developers market selling their tokens to exit scam. Though note, smart contracts have not been audited as of yet.
Positive feedback loop… As the DeFi farming protocol gains traction, the trading volume of ROT will grow. Consequently, the more deflationary the token will become and the faster the supply will decrease. Will ROT overtake SUSHI? Impossible to tell, though they have a strong community and well, Halloween is coming.