Long.xyz Founder: At this stage, prioritizing asset distribution and scale growth over fee sharing or high-yield incentives.

BlockBeats news, September 24: Nate, founder of Robinhood chain coin-stock meme coin issuance platform Long.xyz, posted an explanation of LONG's mechanism for building liquidity around tokenized stock trading pairs. He said the main problem in the current crypto market is not a lack of trading activity, but a lack of stability; deep liquidity raises the cost of market manipulation and concentrated supply, while also helping the market absorb extreme volatility. Stock trading pairs can become a secondary market for tokenized stocks, enabling liquidity providers to participate in trading, arbitrage, and subsequent lending and other applications.

Taking the AI/NVDA trading pair as an example, when Nvidia stock rises 20%, the USD value of NVDA in the liquidity pool will simultaneously rise to about 1.2 times, and selling the same amount of AI can yield a higher USD value, but the actual effect depends on liquidity depth. Arbitrage activity among AI/NVDA, AI/USDG, and NVDA/USDG is used to keep on-chain implied prices synchronized; the deeper the NVDA liquidity in the pool, the more stable the arbitrage process.

Nate said LONG currently places more emphasis on asset distribution and scale growth than on immediately providing holders with high returns through fees or dividends. After asset scale expands, value can be returned to holders through dividends, voting rights, or accumulating NVDA and other methods. He said the team previously provided about $200,000 of liquidity to the AI/NVDA pool and LongX-related assets respectively, and if included in the community treasury, the value of the NVDA held could increase by about onefold.

Regarding high-tax trading pools and token-holder dividend mechanisms, Nate said such models are easily replaced by low-fee pools and rely on highly concentrated and active liquidity management. LONG therefore will not support such mechanisms by default, but instead hopes to encourage users to hold for the long term through stock correlation, liquidity, and natural growth.