Take Your Staking Game Up a Notch with the DEXToken Protocol

Project Reviews / 10.10.2020

The DEXToken Protocol plays a vital role in the Flowchain Foundations tokenization strategy. The firm has been working on the release of its highly-anticipated DEXToken project for months. To accomplish this task, the team needed to ensure a reliable and secure method to determine the actual value of tokens within the ecosystem. This desire led developers directly into the creation of the DEXToken protocol.

This DEXToken protocol directly links the Flowchain Foundations’ IoT infrastructure to decentralized finance applications, featuring an advanced Automated Market Maker, which derives pricing data directly from the blockchain and volatility. In the past, this process would be handled by price-oracles. Oracles are off-chain sensors that can monitor real-world data and initiate smart contracts based on this information. 

The problem with oracles is that they are centralized. If an oracle returns incorrect data to the blockchain, it can create a ripple effect that can hinder the productivity and accuracy of the network moving forward. The DEXToken protocol eliminates the need to depend on these centralized off-chain sensors. Instead, the protocol utilizes its advanced Automated Market Maker in its place. 

The ‘Speculative’ Automated Market Maker

The main goal of the ‘Speculative’ AMM is to ensure token pool liquidity in the Flowchain ecosystem. This task requires the protocol to determine the value of a token-based on various on-chain factors. Unlike most market valuation bots, this AMM determines token value off of volatility.

This strategy introduces some major benefits to the process. For one, it reduces the volatility effect observable on other decentralized exchanges. Also, by eliminating the need for price-oracles, the system is more secure and cost-effective than competitors. 

Benefits of DEXToken Protocol

The DEXToken protocol introduces a variety of new features to the market. For example, the existing IoT infrastructure allows for off-chain issuance of tokens. This is a powerful feature that expands the flexibility and options for companies interested in token issuance. Notably, these off-chain issuances can be redeemed at the Swap exchange instantly.

How does the DEXToken Protocol Work?

At the core of the DEXToken protocol is a variety of next-level technologies. The developers of this platform went above and beyond to create an easy to use option for firms seeking liquidity. At the core of this strategy resides the DEXG Token. 

DEXG Token

The DEXG token functions as the main governance token in the ecosystem. Users can make crucial network upgrade decisions utilizing the token and collect a share of the decentralized exchange’s global trading fees. Also, the token plays an essential role in providing liquidity for the swap exchange.

Staking

The firm currently has eight major staking rounds planned over the coming months. Each staking round will introduce more DEXG into the market. This way, the DEXToken team secures a fair distribution and decentralization of the token, reducing single actors’ power over the protocol’s governance. 

Staking is one of the best ways for new users to begin to earn a passive income. As of late, the DeFi staking community has seen massive growth. The technology allows users to leverage their staking efforts in ways that were previously unavailable. Consequently, users have been on the hunt for the best staking options available. DEXToken fulfills their needs and goes above and beyond the competition. 

Balancer Shared Pool

DEXToken took their platform a step in the right direction when introducing the Balancer Shared Pool feature last month. Crucially, this protocol provides a better way to distribute reward tokens to users. Notably, it completes this task in a manner that supports liquidity in the ecosystem.

Providing Liquidity on DEXs such as Uniswap has proven to be a pain for many companies. Specifically, Uniswap liquidity issues cause high impermanent losses to liquidity providers as the weight of the assets pooled for liquidity is always 50 / 50. The Balancer Shared Pool eliminates these concerns through the integration of a customized asset weight protocol. Importantly, the new feature makes the model less sensitive to impermanent loss and can prevent losses for liquidity providers.

Off-Chain

Perhaps one of the most interesting features of the DEXToken protocol is the ability to issue tokens off-chain. The off-chain issuable token technology provides a new level of flexibility to issuers. Also, users can redeem and withdraw these tokens without delay. This technology can be used as a minting mode for both off-chain and deflationary tokens as well. This technology offers enterprise users and companies an easy and effective way to tokenize all kinds of assets like flight miles, payments, or even industrial sensor data and redeem those instantly on the swap exchange. 

DEXToken Swap Exchange

The DEXToken Swap exchange is one of the biggest draws for this platform. Users can easily find the tokes they desire and trade in seconds. The network provides enterprise-level security, and the transparency utilized by the platform is admirable. These reasons continue to entice more investors to this unique platform.

Release Approaching

DEXToken is in line with its roadmap in terms of implementation. The firm plans to do a private release of the decentralized swap exchange in November 2020. A month later, the platform will release the public version of the system. 

A Unique Launch Strategy

Interestingly, DEXToken chose not to host any pre-sale or ICO. Instead, developers placed  20,000 DEXG on Uniswap with a starting price of 0.5 USDT. This initial liquidity offering on Uniswap was a major success, and the liquidity pool remains locked until late 2022. 

LUNA Round

DEXToken has its second round of fundraising set to commence on October 21, 2020. Users can participate by adding DEXG to the Balancer shared pool. You will then receive an equivalent value in BPT LP tokens. In this round, investors can look forward to a nice reward of 5,250 DEXG. The staking event will allow deposits starting on October 21. The actual staking will last from the 23- 30. The 30th is also the day that you receive your rewards.

Team

The Flowchain Foundation Limited heads DEXToken. This Singapore-based firm has been operational since Mid-2018. Today, the firm has offices across the globe. Specifically, there are operations underway in Taiwan, Mainland China, and Vietnam.

DEXToken Protocol

The DEXToken protocol is a smart way to earn some extra cryptocurrency. This platform has found a truly revolutionary way to raise funds in the blockchain sector. You can expect to see more firms copy their strategy as it is by far the most efficient model produced yet. 

The same goes for the entire DEXToken Protocol. This coding expands investor opportunities and provides a safer way for new investors to see some healthy returns. Simultaneously, the protocol offers extensive opportunities for business clients and the industrial sector around the globe. For these reasons, DEXToken is sure to capture an impressive share of the market moving forward. 

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.