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A DEX like Uniswap but it accepts ETH, burns it, and issues corresponding number of ERC 20 tokens to a user at some developer-defined rate r (Burnswap?)

Obviously one can use Uniswap, Sushiswap, etc. to offer a means of exchanging ETH for new ERC 20 tokens but that approach means that developers have to supply potentially massive liquidity for the ETH/New Token pair and can also pocket the ETH sent by users by withdrawing liquidity from Uniswap. The kind of DEX described in the title would be helpful for new ERC 20 tokens where the developers just want to give their tokens value but don’t intend to pocket the sent ETH.

I’m about to launch an ERC 20 token and would like to use this approach of burning sent ETH and issuing corresponding amount of tokens. I can just add this functionality to the token contract but I think it’s a general enough need to be a standalone DEX.

I’ve looked around and couldn’t find a DEX for this need. Is someone building this? Did I miss one that already exists? Any suggested improvements to the idea?

What do you think?

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4 Comments

  1. I mean if you make a lp with ETH/TOKEN and you send the LP to a dead address you burn the ETH. But the thing is that when you provide liquidity you receive fees from the transactions and if the LP are on a dead address you can’t collect the fees anymore. Or do you want to mint TOKENS by the ETH send ?

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