When a project wants to list its token on a DEX, it hopes to build a thick liquidity. One of the ways to do that is to negotiate with the DEX to provide yield farming reward to the liquidity providers. The decision of whether to provide yield farming reward to a token pair lies either within the DEX's management team, or with its community's governance votes.
DEXs cannot indiscriminately supports all token pairs because they are giving away their own DEX tokens as farming rewards, as this could lead to excessive devaluation of their tokens. Even if a pair of tokens is listed on a DEX, the yield farming APR may still be unattractive. Projects have no say in how a DEX allocates its reward resources, and they are especially disadvantaged if existing farms already consume most of the DEX's resources.
Additionally, it is the market norm for projects to exchange their own tokens for DEXs to provide farming rewards (at a market rate of 1:1 or 1:0.8). This exchange of tokens is repeated every month or two, as long as the farm is active. All of the above procedures require manual operations and heavy communications, slowing the further development of the DeFi landscape.
HoustonSwap introduces a complete new way of yield allocation:
Projects can apply to be the Reward Manager of their own tokens' farms.
Projects can choose to offer farm-yields with any token, e.g. project tokens, DEX tokens, stablecoin, partner tokens, chain's native tokens, etc.
Projects can reward users with one or more tokens.
Projects can choose the end time of their fams.
Projects can increase yields anytime.
Furthermore, because of the concentrated liquidity market maker algorithm, HoustonSwap allows project owners to set BONUS REWARDS for SPECIFIC PRICE RANGES. This is useful when project owners wish to thicken the liquidity at a certain price range, so as to stablize the price of the project token.