The Decentralized Finance space is developing extremely fast. We are seeing many different DeFi projects, that are disrupting traditional financial products right now. This makes DeFi such a hot topic. Not all of these DeFi projects are the same, some of these DeFi projects are really different like DEXToken Protocol. It is a complex DeFi ecosystem powered by a Speculative Automated Market Maker (AMM) that aims to build the next-generation infrastructure for DeFi.
What Is DEXToken Protocol?
DEXToken Protocol describes itself is a DeFi infrastructure that implements the brand-new Speculative Automated Market Maker (AMM). This AMM is, what I believe, the heart of DEXToken Protocol.
In the end, DEXToken Protocol aims to connect Decentralized Finance and the Internet of Things (IoT). I believe that this is a very unique, ambitious, and complex project but I`ll try to break it down as simple as possible. Let`s start by having a closer look and the Speculative AMM.
Speculative Automated Market Maker (AMM)
The core of the whole DEXToken Ecosystem is the so-called Speculative AMM. This Speculative AMM automatically adjusts prices through arbitrage trading. It will be used in the Token Swap Exchange as well as in the Decentralized Exchange.
A crucial part of the Speculative AMM is a universal price model, illustrated in the graphic below. This universal price model enables the Speculative AMM to adjust prices through arbitrage trading automatically. This unique model is designed to mitigate the issue of over-speculation and high price volatility.
The demand and the quantity of an order are always affecting the price of a cryptocurrency and causes a certain slippage in price. Uniswap is known for this kind of algorithm. The Speculative AMM is providing a reasonable price model with a smooth price slippage and lower volatility. That`s why the Speculative AMM is a perfect tool for the use-cases of Decentralized Exchanges.
Off-Chain Computation And Off-Chain Trust
The DEXToken Protocol has an integrated off-chain computation and issuance technology, that is pretty unique. The integrated off-chain computation and issuance technology can provide minted token redeem and user withdrawal capabilities. Something like this has never happened before in the cryptocurrency world.
All off-chain transactions can be done, verified, and audited by the on-chain smart contract. There is absolutely no reliance on oracles or third-party services needed in order to verify and audit the off-chain transactions. The audit report by Pessimistic didn`t find any vulnerabilities in the $DEXG smart contract.
Staking, Governance, And Off-Chain Minting
$DEXG holders can also stake their tokens in order to get a portion of the transaction fee profit. It`s a mechanism that helps to increase the circulating supply of $DEXG by directly rewarding holders that are locking their tokens in staking. The staking rewards are depending on the share of the total locked staking pool.
The staking reward distribution is spaned over eight rounds. The first staking round going live in September 2020. The final staking round is scheduled for January 2021 and will last ten days.
$DEXG holders have to lock their $DEXG in the DEXToken Protocol Staking dApp.
It is also possible to stake $DEXG in staking pools to earn more rewards. DEXToken Protocol has already launched the official Balancer Shared Pool as a new way to distribute rewards, while at the same time supporting the liquidity.
After all, DEXToken Protocol is using a sophisticated staking reward and supply model. If you like to know in detail how this mechanism works, please check out the post "DEXG Staking and Supply Mechanism" published by DEXToken Protocol on Publish0x.
In addition to staking, $DEXG holders will be also able to vote for the governance and for the evolution of the specific Speculative AMM products coming in the future.
Furthermore, DEXToken Protocol offers an off-chain issuable token technology that provides minted token redeem and user withdrawal capabilities. This off-chain issuable token technology is also able to provide a scientific minting mode for both, off-chain and deflationary tokens.
The DEXG Token
DEXToken Protocol`s native token is DEXToken Governance. It is a standard ERC-20 token running on the Ethereum blockchain and didn't have any ICO or presale.
$DEXG`s price today is $41. It has a circulating supply of 20,000 tokens. The maximum supply of 200,000 $DEXG is a theoretical value, and the real maximum supply will not reach the theoretical supply. The reason for this is that the higher the price at Uniswap, the fewer tokens will be minted as rewards.
$DEXG is currently located on market cap rank #955 with a total market capitalization of around $1,000,000. So, at the moment the price of $DEXG is highly volatile because of its relatively low market capitalization.
Uniswap (v2) is the current most active market trading $DEXG. Since $DEXG is a standard ERC-20 token, you can store it in any wallet with ERC-20 capabilities like Trust Wallet or Atomic Wallet.
A "perfect token" should have low volatility characteristics, and further that the properties of its blockchain network should determine its price change. The DEXToken Protocol can gradually develop DEXG to be a "perfect token."
The Flowchain Foundation
Dextoken Protocol is developed and launched by the Flowchain Foundation. The Flowchain Foundation is an independent body that oversees the open-source project and builds its ecosystem. Flowchain offers open source based IoT blockchain solutions and is based in Singapore.
Jollen Chen is the lead developer of Flowchain. He is also the founder and CEO of the Flowchain Foundation.
The Development Of DEXToken Protocol
The history of the DEXToken Protocol started back in 2018 when the Flowchain Foundation released a whitepaper with the title "The Tokenized Hardware Whitepaper". You can say, that this whitepaper was like a blueprint for hardware tokenization in the real world. DEXToken as a decentralized digital asset trading platform was mentioned in this whitepaper for the first time.
Then later in 2019, the Flowchain Foundation established the Tokenomics Research Center and published the academic whitepaper with the title "Volatility effect on the adoption and valuation of tokenomics". That was the point when they realized that there had to be a proper way to evaluate the token price by systematically evaluating the token price valuation.
Soon, at the end end of 2020, the Flowchain Foundation is going to launch the DEXToken Exchange as its first working product.
The DexToken Exchange will only have a buy-button and the Speculative AMM will set the buying price automatically. The user only needs to input the desired quantity.
In 2021, the Flowchain Foundation wants to expand the Speculative AMM and develop a product line. This product line includes an Inflationary Tokens Speculative AMM, an Off-Chain Tokens Speculative AMM, and a Derivatives Tokens Speculative AMM.
Then in 2022, the Flowchain Foundation is going to align with government policies and to actively develop into a service provider for IoT finance, digital finance, and decentralized finance. DEXToken Protocol will finally connect Decentralized Finance and the Internet of Things.
My Final Conclusion
DEXToken Protocol is no simple project at all, it`s quite complex and very ambitious. It solves a problem in the cryptocurrency world that most of us tend to oversee.
The truth is that the majority of the pricing power is held by just some whales and some big exchanges. They both benefit from over-speculation that is causing high price volatility. This behavior leads to huge losses for the majority of investors in the crypto ecosystem. That`s a phenomenon that is actually killing a free market.
That`s an issue that needs to be solved urgently if DeFi wants to become successful and adopted by the masses. I believe that DEXToken Protocol is coming up with a promising solution for this issue at the right time.
I hope I could provide you with some useful information about DEXToken Protocol. In the end, please keep in mind that my intention in this post is not to replace your own research. Always #DYOR. 👌
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This post is my contest entry for the DEXTokenDeFined writing competition here on Publish0x.
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