Introduction

Ethervista is an innovative decentralized exchange (DEX) that cleverly integrates the functionalities of an automated market maker (AMM) and a token issuance platform.

Regarding the team, Ethervista’s members remain anonymous; however, on-chain data tracking shows that the associated addresses belong to early Ethereum whales and an assistant professor from ETH Zurich.

Functionally, Ethervista shares similarities with mainstream decentralized trading platforms like Uniswap but demonstrates unique advantages in its fee structure and token economic model. Unlike other DEXs that typically use ERC-20 tokens as transaction fees, Ethervista uses Ethereum (ETH) as its transaction fee currency. Additionally, the transaction fees are distributed between liquidity providers and token creators, with rewards distributed through a new mechanism for each transaction, leading to lower gas fees.

This innovative fee model boosts trading volume and ensures that fees are reasonably allocated between liquidity providers and token issuers via smart contracts, providing participants with more stable and predictable returns. This article will elaborate on Ethervista’s mechanisms and functions.

Mechanisms and Functions of Ethervista

Operating Mechanism

Ethervista uses a series of mechanisms—including fee distribution, liquidity provider (LP) functions, and a burn mechanism—to create an innovative automated market maker (AMM). This allows for the distribution of transaction fees between liquidity providers and token creators, promoting an increase in trading volume and providing liquidity providers with more stable returns while preventing the occurrence of “rug pulls.” Below are detailed descriptions of its mechanisms:

Fee Distribution

Ethervista adopts an innovative mathematical model—a distribution mechanism based on the “Euler quantity”—to ensure that users can fairly earn ETH rewards in a constantly changing liquidity environment. This mechanism moves beyond traditional decentralized exchanges’ (DEX) focus on short-term price fluctuations and instead emphasizes the promotion of long-term value growth.

Within Ethervista’s smart contracts, a digital sequence known as the “Euler sequence” exists, which updates each time ETH is transferred into the contract. Calculating each Euler number includes adding the previous Euler number to the ratio of transaction fees and the total supply of liquidity provider tokens. This mechanism ensures that every liquidity provider can accurately receive their entitled share of earnings from each transaction.

In terms of fees: While creating tokens based on the Uniswap AMM mechanism, token creators typically set a certain buying and selling fee. For example, 5% of the tokens might be charged as fees for each transaction. As the token’s market price rises, the developers’ revenue through these fees will also increase. When the token price rises to a certain level, creators may choose to sell their held tokens for a profit—potentially leading to a “rug pull.”

On the EtherVista platform, developers collect transaction fees according to the preset rules in the smart contracts, and these fees are settled in ETH. Each liquidity pool has four dynamically adjusted fee variables calculated in real-time based on on-chain trading activity. For instance, if the smart contract stipulates a $10 fee for purchasing the platform token VISTA and a $15 fee for selling VISTA, then regardless of how VISTA’s market price fluctuates, the developers’ income is solely linked to the frequency of transactions and can only receive the corresponding fee distribution.

This mechanism effectively ties developers’ earnings to trading volume rather than token price, thereby reducing the incentive for developers to exit due to fluctuations in token value. This enhances the platform’s stability and investor confidence.

Source: Ethervista

LP Functions

Within the framework of Ethervista, liquidity providers are granted the role of token creators, allowing them to create liquidity pools by configuring pool settings. As a result, they become the creators of these pools and have access to set key parameters, including pool fees, protocol addresses, and metadata.

Moreover, to enhance investor security, token creators have the authority to decide whether to restrict token trading to the Ethervista platform. This is achieved by limiting the use of the ERC20 standard’s transferFrom function, effectively reducing the risk of investors encountering fraud. Ethervista has implemented an innovative measure for all newly launched projects: a 5-day liquidity lock period to further protect investors from malicious activities. This lock period is a precautionary measure to mitigate “rug pulls,” where project teams swiftly withdraw funds and sell tokens through improper means during the project’s early stages, resulting in losses for investors. Through this strategy, Ethervista enhances platform security and contributes to the DeFi sector’s healthy development.

Burn Mechanism

The continuous burn mechanism is a core feature of the EtherVista project, involving the operation of its platform token, VISTA. According to EtherVista’s official explanation, VISTA is designed as a value-compounding deflationary currency, with ongoing automatic buybacks and burn mechanisms as a key characteristic.

Specifically, each transaction (such as a swap) on EtherVista generates ETH fees, a portion used to purchase and burn VISTA tokens. This process reduces the total supply of tokens and raises the price floor of VISTA, creating a compound value effect. This means that the EtherVista system continuously and automatically purchases and destroys VISTA tokens, with each operation increasing the price floor of VISTA tokens. The goal is to enhance the price floor of VISTA by reducing the total supply of tokens, thus generating a compounding value effect.

According to official data, 2.63% of the total supply of VISTA tokens has been permanently repurchased and burned. This mechanism helps to increase the scarcity of the tokens, potentially enhancing their attractiveness to investors and promoting the continuous growth of the VISTA token price.

Source: Ethervista Twitter

Unique Features

Ethervista offers four core functions and innovative features, achieving the fundamental functionalities of a DEX while bringing innovations in mechanisms and user experience.

Core Functions

• Token Exchange: Users can easily exchange tokens such as ETH and VISTA on the EtherVista platform. The trading interface is designed to be simple, allowing users to directly input the transaction amount and complete it easily through their connected wallets.
• Token Launcher: EtherVista offers a token launcher feature that allows creators to configure new token pools, set transaction fees, and launch their token pools. Additionally, creators can define the allocation addresses for ETH fees, which helps support community treasury building and other DeFi applications.
• Liquidity Management: Users can utilize the liquidity management tools available on the platform to deploy or withdraw their liquidity, thereby participating in the platform’s profit distribution. This provides liquidity providers a way to earn transaction fees by providing token liquidity.

Innovative Features

• Reward Collection: Users can view and collect earnings from their liquidity pools in real time. The platform provides a rewards interface where users can track current and historical rewards and claim their earnings.
• Superchat: This is a global real-time chat system integrated directly into the DEX platform, allowing users to quickly exchange information. Access to Superchat is determined by the amount of VISTA tokens held by users, implementing a user tiering system based on token holdings.

VISTA Tokenomics

VISTA is the native token of the EtherVista platform, designed with deflationary characteristics and a total supply cap of 1 million tokens. The platform continuously repurchases and burns VISTA tokens using a portion of the Ethereum (ETH) fees generated from each transaction, thereby reducing the circulating supply in the market and creating a deflationary effect. This mechanism aims to increase the token’s value by reducing supply, thereby creating long-term value for VISTA holders.

As of now, EtherVista has already burned over 26,000 VISTA tokens, reducing the current total supply to below 974,000. The number of token holders has reached 8,600, and the total number of token transfers is 43,302.

Since its launch, VISTA has performed exceptionally well, with a 4000% increase within 4 hours and a peak market capitalization of approximately $50 million. Although the price of VISTA has experienced fluctuations, dropping from a peak of $27.60 to around $10, its deflationary mechanism still provides potential support for its long-term value, with the current market capitalization at approximately $10 million.

Conclusion

EtherVista’s future plans include expanding funding pools and offering services such as lending, futures, and fee-less flash loans. It also plans to integrate with centralized exchanges to further enhance its market influence. These initiatives aim to transform EtherVista into a multifunctional decentralized finance (DeFi) platform, providing more comprehensive services and a broader range of application scenarios.

Overall, the VISTA token economic model combines a deflationary mechanism with the reinvestment of platform trading fees to drive sustained growth in its value and increase its scarcity. This design offers potential long-term returns for token holders and supports the stability and growth of the entire EtherVista ecosystem. However, it is important to note that despite EtherVista providing innovative mechanisms and promising prospects, it remains an emerging platform with unaudited smart contracts, so users should exercise caution when using it.