Blackswan is completely de-correlated from other cryptocurrency assets by increasing liquidity and incentives during periods of uncertainty to create an anti-fragile robust token.

Benefits mobile

Utility is created in the Blackswan ecosystem of innovative DeFi products that siphones value to and strengthens the Blackswan Token through fees going to the Blackswan Fund.* Contrary to many other ecosystem tokens with passive rewards, the reward distribution system of Blackswan carries utility in-itself in order to create unique price action and promote stability with the $SWAN token.

*More information on future Blackswan ecosystem plans can be found on our medium page.

The Problem

Passive liquidity incentives do not make sense in a volatile market. This is because when liquidity is needed most, during periods of uncertainty, passively rewarded liquidity providers are the most likely to exit their liquidity position to protect their capital. This is a fragile, non-robust system. Liquidity providers should be rewarded according to the amount of risk they are taking, and that risk fluctuates substantially.

+During periods of stability stakers receive passive $SWAN rewards

-During periods of uncertainty stakers receive an aggressive distribution of LP tokens backed by stablecoins coming from the Blackswan Fund.

Blackswan Staking

Benefits mobile

Blackswan solves this by making the $SWAN token the most attractive to hold, when the market is the most uncertain. Market uncertainty is defined as a drop in market liquidity which you can read more about in our whitepaper. When this drop in liquidity occurs, aggressive staking rewards from the Blackswan Fund are distributed to liquidity providing stakers in the Blackswan Lake.

STAKERS

  • Positive price action during market uncertainty

  • Supply expansion during periods of high liquidity

  • Blackswan Fund reward access during periods of uncertainty

HOLDERS

  • Positive price action during market uncertainty

  • Supply expansion during periods of high liquidity

  • Blackswan Fund reward access during periods of uncertainty

The Blackswan Lake allows liquidity providers to stake their LP tokens from supported DEX stablecoin pools. Staking rewards during periods of uncertainty / low liquidity are extremely aggressive and paid 50% in stablecoin.

swan distrubition chart

Rewards shown above are a % of the Blackswan Fund, which will contain a large pool of stablecoins and $SWAN tokens accumulated over time from the ecosystem. The reward distribution will reset every time liquidity goes below equilibrium. Your reward multiplier will increase (you will get a larger share of rewards from the Blackswan Lake) the longer you have been staking. This incentivises staking long term instead of trying to stake at the last minute before rewards get distributed.

Blackswan Fund rewards will cause demand for the $SWAN token to increase as staking rewards spike, and allow for liquidity to return to the market.

This is just the beginning, and as the ecosystem expands, so will the strength of the $SWAN token. We are excited to build this together 🦢!

To learn more