Why are Perp DEXs keen on using token incentives to boost trading volume?
It's an asymmetric game: a low-risk, high-reward game aimed at solving the liquidity cold start problem as quickly as possible and swiftly securing a foothold in a competitive market.
1. It attracts traders to create initial activity.
2. It attracts market makers to convert false activity into real liquidity.
3. It targets competitors to seize market narratives during critical times.
4. It draws attention to achieve viral marketing in an age of information explosion.
5. It exchanges future money for present money because, in the brutal competition of DeFi, without current growth, there may be no future.
Stepping back, even if it fails, the protocol has pocketed the money, leaving only cold, hard points and tokens.
Show original
7.76K
4
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.