Xaya deployed their smart contract, bridging CHI from their native blockchain to Ethereum on Tuesday April 6th. The CHI token on the Xaya blockchain can be moved to Ethereum using a bridge, and it will become WCHI, or Wrapped CHI. As a result their previously ‘closed’ ecosystem will open up to wider decentralized finance systems on the Ethereum blockchain.
Currently CHI can be traded on a couple of centralized exchanges. However, by building this bridge with WCHI, the ecosystem can blend into the Ethereum DeFi ecosystem. The first step will be to bring WCHI to Uniswap, a decentralized exchange. Users who provide liquidity on Uniswap by offering both WCHI and ETH, will get a share of the trade commissions. In addition Xaya has the intention to airdrop exclusive game assets for Taurion and future games to liquidity providers.
In addition it allows the developers to expand their horizon in a wider ecosystem, creating a healthy economy and new opportunities. Xaya wants to expand their platform onto Ethereum. As a matter of fact, they will combine their technology with Ethereum Virtual Machines. This would technically open up Xaya to expand their platform to Polygon, Binance Smart Chain and other EVM compatible blockchains. Players will indeed still be able to use their CHI and WCHI on those platforms. For now Xaya plans to bring WCHI to Uniswap V2. However, they also consider to open a trading pool in the upcoming V3 version of the decentralized exchange.
The WCHI smart contract – 0x6DC02164d75651758aC74435806093E421b64605
Uniswap ETH/WCHI trading pair – click here
Details about the WCHI swap
Autonomous World Ltd. is the company that maintains and develops the open-source Xaya platform. They have created a swap functionality for verified users. However, there will only be a maximum of 77 million WCHI on the Ethereum blockchain. There won’t be an additional mint later.
The mimimum amount of CHI to swap has been set at 50,000, which also requires a small fee to actually perform the swap. These swaps will be performed on demand after the launch of the smart contract on April 6th. Players or investors who are sitting on a large pile of CHI, can apply to swap by contacting the developers on Discord.
There will be one liquidity pool on Uniswap for WCHI-ETH. Initially liquidity providers only split 0.3% of the trading fees. In the future there will be NFT drops for existing games in the Xaya ecosystem or future releases.
What is decentralized gaming?
In the text above we focus quite heavy on DeFi, but DeFi sure is important for gaming. Especially when we’re talking about gaming projects that have their own economy. Soccer Manager Elite and Taurion are games that have their entire economy and tactical gameplay moves stored on-chain on the Xaya blockchain. As a result these games are provably fair, and cheating is impossible.
As gamers have economical incentives to perform actions in a game world, they automatically take part in an actual economy. Blockchain technology allows developers to connect their game economy with a broader ecosystem, allowing others to participate in the Xaya ecosystem by buying tokens. Therefore participants in a game economy can be actual gamers, but can also be traders, liquidity providers or for example landowners.
However, this also means that it’s very important for game designers to launch their products the right way. Last year during a treasure hunt Xaya had to do a hard fork, which introduced new gameplay mechanics. Similar to how blockchain developers need to be on the same page, gamers and game designers also need to agree to a hard fork. If they don’t, two version of the game will exist, and only one has continued support from the developer.
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