News of the DEXToken Protocol launch continues to excite the blockchain investment community. This next-generation protocol links the Flowchain Foundations’ IoT infrastructure to the DeFi community in ways previously unimaginable. The integration of this protocol will help drive innovation in the Flowchain Foundation’s ecosystem. Keenly, the DEXToken Protocol offers extensive opportunities for business clients and the industrial sector around the globe.
Investors have been watching DEXToken since the platform took the unusual decision to forgo an ICO. Remarkably, the team behind the project didn’t even host a pre-sale. Instead, they conducted a quiet launch on the popular DEX Uniswap. Specifically, they listed 20,000 DEXG to the Balancer shared pool. These early tokens were listed at a value of 0.5 USDT.
According to developers, they felt this strategy best secured a fair distribution and decentralization of the DEXG token. Specifically, this approach paired with the staking incentive reduces the power of single actors over the protocol’s governance. Notably, DEXToken plans 8 rounds of liquidity staking in total. The first round has already concluded. This initial liquidity offering on Uniswap was a major success. The liquidity pool remains locked until late 2022.
The LUNA Round is Set to Begin
This month, DEXToken will start its second round of liquidity staking. This round, known as “LUNA” officially begins on October 21, 2020. After that date, anyone who wants to participate can do so simply by adding DEXG to the Balancer shared pool. You receive an equivalent value in BPT LP tokens sent to your wallet instantly, which you again can use to participate in the DEXG staking round.
DEXG plays a vital role within the DEXToken ecosystem. This token functions as the main governance token for the network. As with most governance tokens, large DEXG token holders gain more voting rights within the network. Voting rights allow users to decide on major upgrades and changes in a democratic way.
DEXG is also how users pay fees, receive rewards, and collect a share of the global trading fees from the decentralized exchange. Additionally, the token plays a crucial role in providing liquidity for the swap exchange. Liquidity concerns have long plagued decentralized exchanges.
For example, providing liquidity on the world’s top DEX, Uniswap is notoriously difficult. These issues hurt providers through high impermanent losses. Unfortunately, the design of Uniswap requires that the weight of the assets pooled for liquidity is always set at a rate of 50/50. DEXToken eliminates these issues in a unique manner – the Balancer Shared Pool.
Balancer Shared Pool
The Balancer Shared Pool is DEXToken’s answer to the current liquidity issues facing DEXs. This shared pool is designed to support liquidity in the ecosystem. It also prevents losses for liquidity providers. Since this system is better protected against impermanent loss it can provide investors with more value. To accomplish this task, the firm utilizes a customized asset weight protocol.
Get the Rewards
This protocol also provides a better way to distribute reward tokens to users. For example, The LUNA round of staking will provide stakers with an impressive reward of 5,250 DEXG. You can start depositing into the staking dApp on October 21. The event will last until the 30th of the month. You receive your rewards the same day.
More Staking to Come
Importantly, each round of staking issues more DEXG into the market. Currently, the staking phases are solely for the decentralised distribution of the token supply. The goal here is to incentivise a fair and secure decentralisation and distribution of the project. As such, users are rewarded with a part of the fees created by trading activity when they stake their tokens.
DEXToken Swap Exchange
The DEXToken Swap exchange is another important aspect of this strategy that can’t be overlooked. This platform will allow users to find and execute trades of all of their favorite tokens in seconds. According to the company’s roadmap, the company will launch the platform via a private release in November of this year. Developers will use that month to ensure the platform is fully operational. If everything checks out, the platform will be live for public beta within 30 days after the private alpha launch.
Removing Oracles from the Equation
DEXToken seeks to remove one of the weakest links found in most DEX platforms, oracles. Oracles are off-chain sensors that can monitor real-world data and then share this data with the blockchain. They allow blockchains to communicate with outside networks. Consequently, they are a hot topic in the blockchain sector at this time.
Oracles have one glaring issue at the moment. They are centralized. This centralization means that anyone can corrupt a single oracle and manipulate a blockchain via incorrect data entry. This strategy takes blockchain’s greatest strength, its immutable nature, and turns it against itself. These concerns have led to a variety of concepts emerging.
AMM – A ‘Speculative’ Automated Market Maker
While some platforms have sought to create decentralized oracle networks, DEXToken removes these issues completely by removing the dependency on oracles. Instead, the network integrates an advanced ‘Speculative’ Automated Market Maker. The AMM leverages smart contract protocols to maintain token pool liquidity levels. It also ensures a reliable and secure method to determine the actual value of tokens within the ecosystem.
Unlike oracles, that review the blockchain to determine the value of tokens, the AMM utilizes a volatility calculation to come up with this number. This strategy brings some advantages along with it. For one, it reduces the volatility effect observable on other decentralized exchanges.
The DEXToken Protocol – Years in the Making
The DEXToken protocol is the culmination of years of R&D by the Flowchain Foundation Limited. The platform has been under development since 2018. For two years the project has seen considerable growth. There are currently offices located in Taiwan, Mainland China, and Vietnam. You can expect this firm to continue along this path of success as the excitement surrounding LUNA expands.