DeFi Magic Part 2: A Technical Perspective

5 min readApr 22, 2021

As the Axioms ecosystem expands to include DeFi Magic, it is important to release information from a more technical perspective. The following explores the mechanics of the base layer protocols within the Magic ecosystem, and how they form the perfect potion for long-lasting success.

Magic — Binance Smart Chain

The once fabled Magic Cube (Read the Tale of the Magic Cube) has been found, and the Wizards now harnessing the power of the cubes’ ancient magic have been released!

Casting a powerful transformation by fire spell, the sorcerers have expanded the utility for Axioms. Introducing: Magic.

Magic Tokenomics

Name: Magic
Symbol: MAGIC
Supply: 4,000,000
Mechanics: Price Floor (locked liquidity), burning utility, deflationary, self-sustaining yields
TX fee: 1.5%
·1% (feeds Wizard staking contracts)
·0.2% goes to treasury fund
·0.3% burns, removed from supply forever

Contract Address: 0x7538588f72ddada8583409a4a72915d550371b8f
DEX Link: https://pancakeswap.info/token/0x7538588f72ddada8583409a4a72915d550371b8f

Magic is the gateway to providing utility and ecosystem growth on Binance Smart Chain.

Dark Magic — Polygon

Polygon, the land of dragons. Those courageous enough in Axioms who dared to cross chains for vast treasures and glory will come face to face with these winged, mystical beasts. Do you dare wake a sleeping dragon?

Dark Magic Tokenomics:
Name: Dark Magic
Symbol: DMAGIC
Supply: 4,000,000
Mechanics: Price Floor (locked liquidity), burning utility, deflationary, self-sustaining yields
TX fee: 1.5%
·1% (feeds Dragon staking contracts)
·0.2% goes to treasury fund
·0.3% burns, removed from supply forever

Contract Address: 0x61daecab65ee2a1d5b6032df030f3faa3d116aa7
DEX Link: https://analytics-polygon.sushi.com/pairs/0xf5a739b544b392a3fff893a91c53e7408116dfc5

Dark Magic is the gateway to providing utility and ecosystem growth on Polygon

The LP Token Problem

One of the largest problems of “CORE-like clones” is that you end up with locked LP tokens that simply don’t do anything and have no real exit. Although this creates a price floor, they are permanently stuck inside the liquidity pools, and can’t be utilized further. Centralized exchanges do not list UNI LP tokens, and often the only path to trading them is by using a more complicated system like Balancer with minimal liquidity.

To overcome this problem, and to further facilitate growth, we have created wrapped LP tokens in the form of Wizards and Dragons tokens. These can be traded, can interact with other ecosystems and offer exclusive advantages over standard LP tokens.

Wizards & Dragons are the Solution

Wizard and Dragon tokens are the named wrappers for the liquidity provider (LP) tokens associated with Magic and Dark Magic. Meaning, instead of holding LP tokens that don’t hold a recognizable name, you will hold a token with a name associated to the type of LP pairing you have.

For example, instead of having a Magic/axBNB LP token. You’ll have a token named after a Wizard (name to be revealed later), which represents your MAGIC/axBNB LP holdings. And, respective to Dark Magic, when you have axMATIC/DMAGIC LP tokens, you will have a Dragon token named Drax, representing those tokens. Note, 1 axBNB = 1 BNB. And 1 axMATIC = 1 MATIC; both are available to be swapped at a pegged1:1 ratio via smart contract.

The Wizard and Dragon tokens will be used as an on-ramp for other projects that launch, or partner , with DeFi Magic.

These wrapped tokens are distributed at a 1:1 mint ratio to the LP value, and will result in a permanent lock to the LP inside the wrapper. So whatever LP amount you hold will be the corresponding Wizard or Dragon token amount you are provided. This portable LP wrapper allows them to be listed, traded, and gamified.

Partner projects that are currently in development will incorporate DeFi Magic tokens into their ecosystems. This additional volume will expand the value Magic, Dark Magic, Wizards and Dragons tokens, and thus reward LP holders.

Wizard (name TBD) Tokenomics — Binance Smart Chain

Name: TBD
Symbol: TBD
Supply: infinite — mints at a 1:1 ratio to MAGIC/axBNB LP
Function: Wrapper token to MAGIC/axBNB LP
Mechanics: Self-sustaining yields
TX fee: 0.5%
·0.4% “feed vaults”
·0.1% goes to treasury fund
DEX Link: TBD
Contract Address: TBD

Drax Tokenomics — Polygon
Name: Drax
Symbol: DRAX
Supply: infinite — mints at a 1:1 ratio to MAGIC/axMATIC LP
Function: Wrapper token to MAGIC/axMATIC LP
Mechanics: Self-sustaining yields
TX fee: 0.5%
·0.4% “feed vaults”
·0.1% goes to treasury fund
Contract Address: 0x1ba3510a9ceeb72e5cdba8bcdde9647e1f20fb4b
DEX Link: https://analytics-polygon.sushi.com/pairs/0xf5a739b544b392a3fff893a91c53e7408116dfc5

Price Floor Innovation

Liquidity pool tokens will be locked via the LP wrapper to create a price floor mechanic. In the case of Magic and Dark Magic, the liquidity pool pair to these tokens can be “swept out” and utilized for the growth and benefit of the community.

What’s next

Getting a minimum viable product of the protocol launched has been the team’s priority, with the initial being Dark Magic on Polygon, and Magic on BSC soon after. Development is already underway for a multitude of products and partner projects to be born from the DeFi Magic ecosystem, all sharing a focus on utility and sustainable growth.

Brave heroes from the Kingdom of Axioms traveling beyond the Lands of Ethereum have crossed the gateways into other realms and are now forging alliances. The Wizards and the Dragons are harnessing the ancient mystical power of the cube, and the era of Magic is now beginning.