📖CoDEX

Exploring new yield opportunities and pushing the boundaries of liquid NFTs by utilizing ERC-404s

CoDEX introduces new features that enable the trading of ERC404 tokens. This functionality supports the burgeoning market for liquid NFTs, leveraging their unique characteristics and versatility. ERC404 tokens serve as digital representations of knowledge or lore, particularly in the context of the Fable Hub, where they act as Books in the Lore Engine. This document outlines the use case for liquid NFTs, the specific role of ERC404 tokens, and the fee structure associated with the DEX.

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Use case for Liquid NFTs is a untapped world

Liquid NFTs represent a paradigm shift in digital asset trading by combining the uniqueness of traditional NFTs with the liquidity typically found in fungible tokens. Key use cases include:

1. Fractional Ownership: Liquid NFTs can be fractionalized, enabling broader access and investment opportunities.

1. High-Frequency Trading: Unlike traditional NFTs, liquid NFTs can be traded more rapidly and efficiently, enhancing market dynamics.

2. Versatility: These tokens can interact seamlessly with DeFi protocols, enabling staking, lending, and yield farming.

3. Dynamic Pricing: Liquid NFTs benefit from real-time price discovery due to active trading on DEX platforms.

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Use Case of ERC404s as Books in the Fable Hub Lore Engine

In the Fable Hub, ERC404 tokens represent Books within the Lore Engine—a digital repository of stories, histories, and world-building elements. These tokens provide:

1. Dynamic Storytelling: Users can trade, combine, or modify Books to create personalized lore experiences.

1. Provenance and Authenticity: Each Book has a unique origin and metadata, ensuring the authenticity of stories.

2. Collaborative Creation: Communities can collectively contribute to and expand upon existing lore by trading or minting new Books.

3. Gamification and Rewards: The trading of ERC404 Books enables gamified elements, such as unlocking hidden lore or earning rewards for completing collections. With an endless supply of creators allowed on the platform and no shortage of lore within Web3 projects the rewards can grown exponentially.

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Fee Structure for the CoDEX DEX

To sustain the platform and incentivize ecosystem participants, the following fee structure is proposed:

1. Trading Fees:

• A base fee of 0.25% on each trade.

• Discounts for users staking native LORE tokens (e.g., 0.20% for stakers ).

• A portion of fees allocated to liquidity providers (e.g., 70% of the fee).

1. Listing Fees:

• A smol one-time fee for listing new ERC404 tokens on the DEX.

1. Creator Royalties:

• A built-in royalty fee (e.g., .05%) for the original creator of the ERC404 token.

• Automatically distributed upon each resale.

The integration of ERC404 trading on CoDEX aligns with the platform’s vision of fostering innovation in decentralized finance and digital storytelling. By enabling liquid NFT trading and utilizing ERC404 tokens as dynamic Books within the Fable Hub, CoDEX positions itself at the forefront of both blockchain-based creativity and financial ecosystems. The thoughtfully designed fee structure ensures sustainability while rewarding active participants and creators.