DEXG/USDC Balancer Shared Pool

DEXG/USDC Balancer Shared Pool


dextoken-balancer

DEXToken goes Balancer. We are pleased to announce the DEXG Balancer Shared Pool. We created the official Balancer Shared Pool as a new way to distribute DEXG reward tokens, while at the same time supporting the liquidity of the project.

Providing liquidity on Uniswap often causes high impermanent losses to liquidity providers as the weight of the assets pooled for liquidity is always 50 / 50. Unlike Uniswap, the Balancer Protocol can address this issue and customise the weighting of assets in the liquidity pool.

The DEXG/USDC Shared Pool

The new Balancer liquidity bootstrap pool will be composed of 90% DEXG and 10% USDC. This model is less sensitive to impermanent loss and can prevent losses for liquidity providers. At the same time, it disincentivises price speculation as a 90/10 pool will have higher slippage. This model allows liquidity providers and stakers to have high exposure to DEXG while reducing the associated risks holding it. As usual, liquidity providers will get a part of the trading fees according to their share in the liquidity pool.

For more information on the implications of implementing a bullish pool (pools over 80/20 composition), please refer to https://balancer.finance/2020/03/16/80-20-balancer-pools/.

shared-pool-quick-facts

The 90/10 model on Balancer has been successfully used before by projects like Synthetix (SNX) to distribute rewards and incentivise liquidity providers. Looking at the good results Synthetix created with this model, we are certain that Balancer will offer us a better platform than Uniswap to reach our targets.

Earn BAL Tokens

We have been included in the newest whitelisting proposal of Balancer. This allows liquidity providers of the DEXG/USDC pool to earn BAL as rewards, depending on their share of the total Balancer liquidity. Whitelisting will also have the positive effect of DEXG being visible with the name and logo instead of the smart contract ID.

You can find out more about the Balancer Liquidity Mining Program here: https://defipulse.com/blog/balancer-start-liquidity-mining-and-earn-bal-tokens-today/.

Staking Model Update

Gathering your feedback from the first staking round, we will implement a changed code logic and staking model in the LUNA Staking Round in October. This will have several benefits for stakers.

The IGNITION staking model

The IGNITION staking model used an equal reward logic. This had the consequence of locking deposits and withdrawals during the staking period while allowing everyone to get the same percentage of rewards depending on their deposited amount. The IGNITION round uses this straightforward staking model to reward early DEXG holders.

The LUNA staking model

The LUNA staking model makes staking more flexible for DEXG holders, while at the same time supporting the liquidity and price stability of DEXG.

As a prerequisite to participate in the LUNA Staking Round, DEXG holders need to submit their tokens in the Shared Liquidity Pool on Balancer with a 90/10 DEXG to USDC ratio. Upon successful submission of the tokens in the Shared Pool, Liquidity Providers will get Balancer Pool Tokens (BPT), which then can be used at the staking dApp on stake.dextoken.io

luna-staking-process

This change of staking model comes with several beneficial effects:

  1. During the staking period, liquidity of DEXG is secured, reducing price volatility.
  2. Holders can deposit their BPT at any time during the staking period.
  3. Stakers can withdraw their BPT at any time during the staking period.
  4. The staking rewards depend on how long the BPT have been staked in the dApp
  5. DEXG reward tokens can be withdrawn after the staking ends, even if the staked BPT is withdrawn before already.

How to proceed after IGNITION

We encourage the community to add the rewards received in the IGNITION round to the Balancer Shared Pool and stake the corresponding BPTs at the LUNA Staking Round. With the Shared Pool ratio of 90% DEXG to 10% USDC, it only needs small USDC capital to provide liquidity. For example, for every $9 worth of DEXG submitted to the Pool, liquidity providers need to submit $1 of USDC.

As mentioned earlier, Liquidity Providers that successfully submitted DEXG and USDC to the Balancer Shared Pool will receive Balancer Pool Tokens (BPT) in return. Those BPTs can be deposited into the DEXG staking dApp at https://stake.dextoken.io and used for staking in the LUNA Staking Round.

Step by Step Guide

Step 1: Navigate to the DEXG/USDC Shared Pool: https://pools.balancer.exchange/#/pool/0x5b18df96d3c8b9f1d1b9e38752498f92d1e2d490/

Step 2: Connect your Wallet to Balancer

Step 3: Click at “Add Liquidity”

add-liqu

Step 4: If you use Balancer for the first time a prompt will appear asking you to set up a Proxy contract; confirm this action in your wallet.

setup-proxy

Step 5: Click on the “Multi assets” tab.

multi-asset-tab

Step 6: Approve the interaction with the contracts in your wallet by clicking on ‘Unlock’ for DEXG and USDC.

unlock-assets

Step 7: After the interaction with the contracts was successfully approved, the ‘Unlock’ buttons will vanish.

unlocked-asssets

Step 8: Choose the amount of DEXG you’d want to submit to the liquidity pool. In this example 1 DEXG. The USDC amount will automatically adjust to meet the 90/10 ratio.

Step 9: Make sure that everything is set up correctly and check the warning box. After that, click on ‘Add Liquidity’ and confirm the transaction in your wallet.

agreement-box

Step 10: Once the transaction is confirmed, you’ll automatically receive BPT tokens to your wallet in return. For each full DEXG/USDC ratio submitted to the liquidity pool, you’ll receive your share of the BPT.

Step 11: Add the BPT contract to your wallet as a custom token.

  • Contract: 0x5b18df96d3c8b9f1d1b9e38752498f92d1e2d490
  • Symbol: BPT
  • Decimals: 18

Step 12: After the LUNA staking timeline is announced and deposits opened, Go to the DEXG staking dApp: https://stake.dextoken.io.

Step 13: Approve and deposit the BPT tokens to the staking dApp to receive staking rewards.


Links & Ressources:


Disclaimer:

DEXG tokens are not intended to constitute securities in any jurisdiction. The white paper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investments in securities in any jurisdiction.

The Flowchain Foundation Limited disclaims any and all responsibility and liability to any person for any loss or damage whatsoever arising directly or indirectly from (1) reliance on any information contained in this white paper, (2) any error, omission or inaccuracy in any such information, or (3) any action resulting therefrom.

The value of DEXG tokens is currently very volatile. Flowchain Foundation (“Company”) does not have any means of stabilizing the token value, please buy at your own risk. Unlike bank accounts or accounts at some other financial institutions, DEXG are uninsured unless you specifically obtain private insurance to insure them. Thus, in the event of loss or loss of utility value, there is no public insurer or private insurance arranged by Company, to offer recourse to you. Because DEXG are based on the Ethereum protocol, any malfunction, breakdown or abandonment of the Ethereum protocol may have a material adverse effect on the platform or DEXG. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the DEXG and the platform, including the utility of the DEXG for obtaining services, by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum protocol.


DEXToken Protocol
DEXToken Protocol

The DEXToken Protocol is building the infrastructure to connect decentralised finance and the internet of things.


DEXToken Protocol
DEXToken Protocol

The DEXToken Protocol connects decentralised finance and the internet of things, governed by the DEXToken Governance token and powered by our scientifically researched AMM - https://dextoken.io/

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