Solanax : Everything you need to know now before investing

What is Solanax?

Solanax is a decentralized exchange (DEX) built on the Solana Blockchain. This automated market maker (AMM) aims to offer faster transactions and no more steep fees. 

Solanax’s decision to use PoH (Proof of History Blockchain) is related to time and fees. It’s one of the fastest blockchains in the world. This blockchain can handle up to 50,000 transactions per second while creating new blocks every 400 milliseconds. Thanks to its permissionless nature, high speed, and low fees, Solanax calls itself the Fastest DEX ever. Hopefully, the current DeFi space will benefit from its adoption.

Low fees and high speed DEX

Users offering liquidity to the automated market maker pool will pay nearly zero fees. That will include farming the Liquidity Provider (LP) token and harvesting the rewards.

Plus, unlike traditional AMMs, no gas fees are wasted while waiting for the transaction to be settled. For example, in DEXs like Uniswap, you indicate the number of tokens you want to trade and the percentage of slippage. If these conditions weren’t met, the gas fee is wasted. Solanax solves once for all these issues by offering the much-needed limit order trading functionality.

Please note that you’ll still have to pay small fees to the platform. For instance, making a trade over the Solanax platform costs around 0.3% for the taker order and 0.2% for the maker.

Why should I use Solanax?

To better understand the difference between this DEX and other automated market maker, we must think about Ethereum Blockchain and its 15 TPS. Then compare it with the 50K TPS Solana can manage!

Just like any other trader using Ethereum or BSC based DEXs, you might have experienced at least once, one of these issues: high slippage, long time for the transaction to be settled, high fees, and a price that keeps varying due to poor liquidity, especially with new or small assets. Gas fees are, in of themselves, a painful setback when dealing with DEXs like Uniswap or Sushiswap.

Solanax is a DEX that promises its users a solution to all these issues. After some research, we found that fees can be as lower as $10 per 1 million transactions and no slippage!

The wormhole bridge

As its name implies, the wormhole bride is a technology that provides a bridge between different blockchains. The wormhole bridge will allow Solanax to get direct and comprehensive access to the Ethereum blockchain assets. Of course, this is not a unique feature. You may have already encountered similar solutions.

The primary function of the wormhole on the Solanax DEX is to allow seamless and easy swaps between ERC-20 and SPL tokens, which are respectively the Ethereum and the Solana standard tokens. That’s great! Users will be able to convert their ERC-20 tokens into SPL tokens then trade them for fewer fees!

This process will be leaderless, meaning that guardians are the ones who will perform similar computations upon observing an on-chain event. After that, they will sign a Validators Action Approval (VAA). An event is validated once signed by more than 66% of the guardian nodes, who will use their respective keys to sign the approval.

The team behind Solanax

The Solanax team counts multiple skilled team members with years of experience in development and DeFi financial services. Most of them live in the USA and several European countries. The identity of the team members can certainly help build or break its credibility in this industry.

Arvydas Kublickas is CEO of Solanax. According to his LinkedIn profile, he has skills in both engineering and business development. Although he took many responsibilities in the past – Chief Technology Officer at Prowallet, Project Manager at ProSwap, and Chief Financial Officer at CoinMargin – the CEO LinkedIn account doesn’t provide any further information about him. Arvydas Kublickas rarely posts anything and has a limited number of relations. That’s unfortunate! Networking is crucial to the success of any project.

Just like Arvydas Kublickas, the Head of Sales, Matas Balnaitis also worked at ProSwap. Matas Balnaitis is still the project manager at ProSwap.

The SOLD token

According to the Solanax whitepaper, the token is intended for wide usage on their platform both by investors and ordinary traders. They will all be incentivized to use the SOLD Tokens on the DEX, which can increase the demand and therefore raise its price. SOLD holders will also benefit from all the features that this platform can offer (Staking, Farming).

The team’s holdings are usually a good indicator of how decentralized and serious a project is. Solanax Team only holds 5% of the total supply that is hard-capped at 80 000 000 SOLDS. Even better, 15% is already staked, and 40% of the supply will be used to reward holders and to incentivize new users. Thanks to the PoH consensus, SOLDS supply is limited and gets burned to reduce the number of tokens available.

Finally, early adopters will be benefitting the most from using the SOLD token. They can trade just like in other DEXs, but for lower fees, stake, provide liquidity and get farming rewards.

How active is Solanax on Social Media Platforms?

Upon visiting the Solanax website, we quickly spot links to their Twitter, Reddit, Medium, Discord, and telegram account. We were even more pleased to see that even though their Twitter account is relatively new, they had more than 10 thousand followers (at the time of writing) and an active community.

On the other hand, Solanax’s medium account has merely a few followers and articles talking about the major announcements. We hope to see more content and followers, as this is a good indication of whether the project can create the hype needed for price appreciation. The good news is that we can already see organic user activity in their Discord and Telegram accounts.  

Solanax Roadmap

This is a relatively new project. The Solanax idea and core team were established during the second quarter of 2021. But the project will be more promising once the upcoming steps and the improvements are added successfully to the platform. One of the most anticipated integration is the wormhole bridge that will enable swapping ERC-20 and SPL tokens.

According to the Solanax white paper, the team aims to get the SOLD token listed on major exchanges before the end of 2021 alongside the integration of another wormhole bridge between BSC and SPL tokens.

In 2022, Solanax is planning to launch its open-source liquidity platform and DeFi protocol.

SOLANAX Price Prediction for 2021

Upon closely looking into the tokenomics and project potential, a SOLD Token at $3 is possible.

First, SOLD Token has a very limited circulating supply. According to Coinmarketcap, there are roughly 14 million tokens, making this cryptocurrency a relatively scares token. Compared to its potential, the marketcap is also still very small and has a lot of room to grow. We can easily see a $50-100 Million market cap before the end of the year.

Secondly, staking SOLD Tokens is already possible which will help decrease the circulating supply. A first staking pool was opened on the exMarkets platform, with its capacity increased by 1 million this August 31^st.

Even the amount of SOLD tokens can be decreased. According to the Solanax whitepaper, a limited governance model will be launched on Solanax, which will enable SOLD stakeholders to vote for or against community ideas and modifications.

Unfortunately, this is a relatively new project. No technical price prediction can be made for now. We can only make a comparison to its competitors like ADAX which is built on the Cardano Blockchain. Both have a lot of potentials. They both are new DEXs built on blockchains with shorter transaction times and lower fees.

The evolution of the SOLD token price will be directly linked to the success of the integrations planned by the team building and wider adoption of the Solana Blockchain.

Verdict

Solanax is a relatively new project and potentially promising if the team can deliver on its promises. Here are some Pros & Cons to consider before investing in this high-risk and low marketcap project.

Pros

• The platform offers lots of incentives to its token holders.
• The team is well-known and experienced.
• This project solves a series of major issues on the DeFi space, such as liquidity, convertibility, fees, and speed.
• The Marcetcap is still considerably small regarding the potential this platform theoretically has.

Cons

• We would like to see a better presence on social media platforms and more presence in generals.
• The platform isn’t operating yet.