Introducing Blackhole
Blackhole is a new cutting-edge decentralised exchange (DEX) designed to serve as the Trading and Liquidity Hub for all blockchain projects on Avalanche. By synthesizing and improving on the most effective features from leading DeFi protocols, Blackhole delivers a next-generation DEX platform that redefines decentralized trading. Drawing inspiration from DeFi trailblazers, Blackhole integrates:
Vote-escrowed token model (inspired by Curve Finance)
ve(3,3) model (derived from Solidly, Aerodrome, and Velodrome)
clAMM Pools (Uniswap V3)
Custom fees per pool (Uniswap V4)
Yet, Blackhole takes it a step further by introducing fundamental enhancements to the vote-escrowed model by introducing two distinct veNFTs:
Singularity veNFT: Empowers users to lock protocol tokens ranging from a week up to four years, mirroring Curve’s proven vote-escrow mechanism.
Supermassive veNFT: Introduces permanent token locking by burning tokens, removing them from the supply forever. Supermassives unlock powerful benefits:
Voting power that lasts: it never decays over time
Rebase Boost: extra 10% on your rebase rate
Extra 10% voting power boost
Anyone has the option to either mint a Singularity veNFT with a flexible lock-up period of up to 4 years, or to mint a Supermassive NFT by reducing the token supply. The Supermassive veNFT sets Blackhole apart from other ve(3,3) protocols, where communities must rely on founders to repeatedly re-lock their team tokens every four years. With Blackhole, the team exclusively receives Supermassive veNFTs, tied to team tokens that are permanently burned and removed from circulation. This eliminates any need to trust the team’s future actions, as their tokens are verifiably gone forever by ensuring no future selling pressure is coming from the team. This bold mechanism aligns all stakeholders with the protocol’s long-term success, while the community can independently verify burned tokens on-chain. Trust nothing; verify everything.
Further solidifying its innovative edge, Blackhole introduces Genesis Pools, a novel feature designed to revolutionize pre-TGE liquidity seeding. This solution enhances the protocol’s foundation, offering capital efficiency and confidence for projects launching on Avalanche. Blackhole isn’t just a DEX—it’s a beacon of trustless innovation, built to empower and unite the DeFi ecosystem.
Built on Avalanche: A Foundation for Innovation
Blackhole is honored to be supported by the Avalanche Foundation, a partnership that underscores our commitment to redefining decentralized finance. Choosing Avalanche as the backbone for Blackhole is a deliberate strategy, driven by its cutting-edge infrastructure and alignment with our vision for a high-performance, next-generation DEX. Here’s why Avalanche is the ideal foundation for Blackhole’s mission to become the Unified Liquidity Hub for blockchain projects:
Shared Vision for the Future
Avalanche’s bold commitment to Web3 gaming and artificial intelligence, exemplified by initiatives like the infraBUIDL(AI) Program, mirrors Blackhole’s ambition to create a dynamic DEX that powers innovative blockchain ecosystems. This synergy ensures Blackhole is perfectly positioned to support high-growth sectors like gaming and AI, delivering unparalleled liquidity solutions.
Unmatched Performance and Scalability
Avalanche’s L1s architecture overcomes the scalability bottlenecks that plague many blockchains. The Etna Upgrade introduced L1s to the Avalanche network, providing an enhanced sovereign network design to the original Subnet model. Each L1 chain is isolated, so high activity on one chain (e.g., NFT drops or gaming events) does not congest or slow down others. This independence prevents bottlenecks common in monolithic blockchains and reduces transaction fees network-wide.
Affordable Access for All
With significantly lower gas fees than platforms like Ethereum, Avalanche makes DeFi accessible to everyone, from casual users to large-scale projects. This cost efficiency aligns with Blackhole’s mission to democratize financial opportunities, ensuring our DEX is inclusive and impactful.
Ecosystem Support That Drives Success
The Avalanche Foundation goes beyond financial backing, offering Blackhole a robust support system that includes strategic partnerships, co-marketing opportunities, and collaborative growth initiatives. This comprehensive ecosystem accelerates our development and amplifies our presence, fostering long-term success.
By building on Avalanche, Blackhole harnesses speed, affordability, and innovation to deliver a DEX that sets new standards in DeFi. We’re thrilled to contribute to the Avalanche ecosystem, driving the future of decentralized finance with confidence and purpose.
Blackhole Architecture
Genesis Pools: Liquidity Bootstrapping Reimagined
The Genesis Pool mechanism solves the cold-start liquidity problem through a novel mechanism:
Project Contribution: Projects deposit their native tokens into a smart contract vault
Community Matching: Users supply paired assets (e.g. $BLACK, $AVAX, $USDC) to complete the Genesis Liquidity Pool
LP Formation: At the end of the Genesis Pool, the tokens from projects and community contributors are combined to form a Liquidity Pool, provided that the minimum threshold has been met
LP Token Distribution: LP tokens are auto-staked for yield, and distributed over both the contributing projects and Genesis Pool Participants
Voting Gauge: A voting gauge is established to allocate incentives for the first epoch
This model significantly reduces initial capital requirements compared to traditional DEX listings, as projects leverage community capital rather than relying solely on their own treasury or VC funding. The configurable lock on project LP shares prevents predatory tokenomics while allowing organic price discovery and in addition the Genesis Pool community participants are rewarded with a yield-bearing staked LP position that generates returns as part of the ve(3,3) flywheel.
ve(3,3) Tokenomics: Aligning Long-Term Incentives
Blackhole's vote-escrow system incorporates:
Burned Team Tokens
Team tokens are permanently removed from circulation, eliminating founder sell pressure and aligning the team’s incentives with the long-term success of the protocol and its community and other stakeholders
Decaying Emissions Schedule
Controlled token release through weekly epochs
Gauge Voting System
Token holders can lock their $BLACK tokens to mint $veBLACK NFTs, granting them voting power to participate in weekly decisions on which liquidity pools should receive reward emissions.
Liquidity Incentives
Projects and community members can offer bribes to $veBLACK holders in exchange for votes. $veBLACK holders who vote, receive protocol revenue in the form of swap fees of the pools they voted for and liquidity bribes from the previous epoch
Incentives for LP-ers
LP providers with staked positions, receive rewards in the form of emissions each epoch
Reducing Circulating Supply
Participants of Blackhole’s governance and gauge vote system, lock up their tokens in exchange for voting power. This further reduces circulating supply and contributes to long-term price stability and incentive alignment
Consumer Engagement & User-Centric Design
Projects can captivate consumer interest by launching on Blackhole’s vertical DEX platform. With Blackhole’s robust visibility, liquidity incentives, and dynamic marketing support across platforms and social channels, projects can scale confidently and efficiently. Blackhole’s intuitive, frictionless interface empowers both DeFi experts and newcomers, ensuring seamless adoption and engagement.
Conclusion
Blackhole’s purpose-driven architecture generates an irresistible pull for projects seeking sustainable liquidity solutions. By leveraging the capital efficiency of Genesis Pools and the incentive-driven ve(3,3) tokenomics, Blackhole sets a bold new benchmark for verticalized AMM DEX platforms.
The protocol’s success rests on disciplined emission controls and its ability to onboard the next million of DeFi, GameFi and AI enthusiasts through Avalanche’s accessible infrastructure. Positioned to dominate the liquidity layer for these sectors, Blackhole is poised to create a powerful network effect, unifying fragmented markets into a cohesive financial ecosystem.
In the coming weeks, we will unveil more details about Blackhole, including our Public Testnet launch, Testnet Campaign, Tokenomics, and groundbreaking features. Stay tuned for what’s next!
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Website: https://blackhole.xyz/
Twitter: https://x.com/BlackHoleDEX
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