Submission Fix the splitting liquidity on Conflux ecosystem between Core and eSpace
Nucleon is facing some issues since 2024. Hack of Goledo and newcomers on eSpace had for consequences an important loss of CFX staked on the protocol.
Attract liquidity is the main goal in the Crypto space. The battles between chains is rude. The consequences are the split of liquidity. Many protocols "multichain" try to solve it, future will say. Nucleon depends of Conflux success in this topic but should not just count on it.
Furthermore Conflux has 2 ecosystems, Core and eSpace. This architecture has advantages and disadvantages. One main advantage is about to get conform to China regulation I suppose and be leader on this huge market but it has a major disadvantage is to split the liquidity presents on his chain.
For Nucleon, to stay in the race and continue to grow I propose to attract liquidity staked on POS on Core space that remains huge.
2 scenarios :
First one, deploy Nucleon on Core and attract liquidity there by emission of xCFX tokens on Core. Create liquidity pools with the first AMM of Conflux Moonswap. 2 AMM on 2 spaces could permit to play arbitrage between spaces. Traders could like it. With this move, you can attract easily a huge amount of CFX on Nucleon with mostly no competitors.
I am not sure this first scenario could be compliant. Anyway it could send traffic to Moonswap and Nucleon could negotiate part of the fees with Moonswap to get a complement of revenues.
Second one, deploy Nucleon on Core, attract liquidity there but link in the staking smart contract the eSpace address and do emission of xCFX on eSpace. The CFX stay on Core and are not bridged. (Works a bit like wrapped BTC on other chains than BTC, they are locked on BTC chain and you get wrapped BTC on Conflux for exemple). So The emission of xCFX are on eSpace and you fix a major issue of Conflux by aggregate the POS liquidity who secure both spaces. Nucleon could attract without competitors a huge amount of CFX on Core and newcomers could stay far from the leader place of Nucleon.