Today we had our AMA with 21 Crypto and want to thank everyone for participating! It has been a pleasure to work with the 21 Crypto team and the community! Alistor and Michel enjoyed the experience and especially the live question round. We hope to see many more of these events in the future and will always be happy to see familiar faces from the community during it!
Segment 1: Questions by 21 Crypto
Q1. Could you please describe what is DEXG in a few simple sentences to our Community?
Alistor: It’s always a bit hard to break down huge projects like DEXG into a few sentences, but here we go: The DEXToken Protocol aims at creating a new DeFi ecosystem, which allows interaction between off-chain IoT networks and public chains. A central part about the DEXToken Protocol is the DEXToken decentralised exchange which should be ready for public beta testing in December 2020. The Protocol features a brand new and unique AMM technology, which reduces the volatility effect and slippage on existing exchanges making trading a lot cheaper compared to the likes of UNISWAP while removing the need for external price-oracles. At the same time, the protocol will be able to handle off-chain minting of tokens for IoT like use-cases. This hasn’t been achieved by other decentralised protocols before and is a very unique factor when talking about DEXG.
Q2. What are the advantages of DEXG that make it unique compared to other alternatives in the Blockchain field?
Michel: Let’s talk about the benefits for the end-users first! The decentralised exchange will simply create a better trading experience, with considerably less slippage and a fast order book, powered by our unique ‘speculative AMM’. This gives users more control over their assets and trades and effectively makes their trades cheaper. For business clients, the usage of the off-chain issuance of tokens holds considerable benefit, as they are enabled to decentralise and automate processes with ease while also linking those processes with decentralised finance applications in a secure way, which right now is a big issue. In the grand vision, we even aim to see trades taking place in the private chains utilising the protocol, making the trades instant and reducing the trading fees by a large margin. In the end, the ecosystem needs all elements to function, and DEXG is the oil that makes it all happen!
Q3. What are the advantages of DEXG token over other tokens? How much supply is available? Where will the token be allocated? And what benefits can be obtained by holding it?
Alistor: DEXG holders will get a share of all trading fees from the exchange, while taking part in the governance of the protocol, expanding or modifying its features. Enterprises meanwhile can use DEXG as collateral to mint mentioned off-chain tokens, further increasing the demand for it.
Currently, we envision a total max. supply of 79,500 tokens. However, this number can further decrease since the supply is determined and distributed in a series of eight staking rounds. The second staking round begins on the 23rd of October - you can find the details on our website. Since we have no limits on participating, except holding DEXG, everyone is welcome to join our staking rounds.
Michel: We explain everything in detail on our Medium page btw if you would like to have a look!
Q4. Now that the community has adapted to the DeFi project, what is DEXG view on this, and how can DEXG tackle this to stay ahead?
Michel: DEXG is being developed by the Flowchain Foundation which has considerable experience in blockchain development and research. The DeFi space is still considerably small, with only about 600,000 unique addresses connected to decentralised finance applications. Think about that! We are at the start of it all! Of course, we have seen a bit of stagnation within DeFi due to an increasing number of rug-pulls and other scams. However, this is only working in our favour as people are looking for solid projects that have a clear roadmap and future. We see a lot of room for growth while this exciting field matures and DEXG, being a serious project with unique features, aims to be a leader in the space of decentralised finance.
We are working hard to make that happen!
Q5. Finally, what are the major milestones DEXG achieved so far & what is in the future pipeline?
Alistor: I think it’s far more interesting to talk about the present and future than the past. Just today our DEXG/USDC Balancer shared pool grew to over $1 million in liquidity. Our next milestones for this year include the decentralised exchange private alpha and beta in November/December and the public beta in late December 2020. Meanwhile, we will see the additional staking rounds on a bi-weekly basis until January 2021, distributing the total token supply on a fair basis to the existing DEXG holders. The following year will be very exciting as we continuously get closer to release the full product.
Segment 2: Question from Twitter
(Chosen by 21Crypto Moderators)
Q6. How much time did you spend building DEXToken compared to your other endeavours as we know FLC and AIMining? Have there been any problems DEXToken has been facing? (@khaerunnimah13)
Michel: Well, the initial idea of the DEXToken Protocol was already published in one of our Whitepapers in 2018 and further refined during the Flowchain (FLC) development. The speculative AMM featured in the protocol was concluded in late 2019. So, we always had this in mind for over two years at this point. Official work on the DEXToken Protocol, as we envision it now, started to pick up in mid-2020, culminating in the placement of 20,000 DEXG on Uniswap in August which marked the official pre-launch of the project. We currently spend extensive manpower towards the development of it. AImining meanwhile is a separate company with its own products that are also currently under development, which I can’t really comment on. Regarding bumps in the road, Our experienced team has been able to deliver a perfectly working dApp for the staking rounds and we haven’t had any problems so far! As we design and code everything in-house we are able to take on all challenges ourselves and don’t have to rely on 3rd parties which makes development more focused and more secure!
Q7. Can you explain the concept of the "perfect token" as it says on your website? What do you think makes a perfect token, and will this vision materialize soon or will it need more time for further development? (@Armagedon315)
Alistor: Currently, traders use either stablecoins or major cryptocurrencies like Bitcoin and Ethereum to price assets. However, both come with concerns, as stablecoins are always subject to national regulatory agencies and cryptocurrencies are highly volatile. A characteristic of the ‘perfect token’ is to be free of outside interference and to have low volatility characteristics.
DEXG can in theory gradually become such a perfect token the more the DEXToken ecosystem grows. However, this is a process depending on a lot of factors and the current volatility within DEXG proves that we are far away from the realisation of it. Once the staking rounds will have finished though and all liquidity has been distributed, we will have created a strong foundation for the future to realise the vision of the perfect token.
Q8. Will DEXG holders large/small get a share of the trading fee? And is that the goal DEXToken wants to achieve and is it a marketing strategy to hook up new investors/partnerships? (@oswaalld)
Michel: All DEXG holders will get a share of the trading fee on the decentralised exchange and with a max. supply of only 79,500 the shares can become quite significant depending on the trading volume on the exchange. That said the fee distribution is not really a ‘goal’ of the DEXToken Protocol, but an incentive for holders to support the ecosystem alongside beneficial governance decisions to keep the protocol growing and healthy - a mutual benefit for both parties so to say. The real reason we think DEXG is an interesting investment proposition is that we have clear long term goals and all this within a highly regulated market. While there are more and more regulations worldwide and governments shutting down lots of shady projects left and right, we are able to grow and thrive because of our unique position.
Q9. Does the marketing aim at business clients or private investors? Which is more important to DEXToken? (@cristmartin7979)
Alistor: Both are very important for different reasons. As mentioned before, the DEXG holders serve as the backbone of the infrastructure, which private end-users can use for the exchange, or enterprises can use to improve their business processes. Meanwhile, business clients facilitate the growth of the ecosystem. I think it’s important to understand that a functional eco-system always needs private, as well as business clients to grow and prosper. While many crypto projects lack to target the one or other side of the spectrum, we’ve found several use cases for both sides engaging in an ecosystem that will benefit everyone.
Q10. How does the DEXToken exchange attract liquidity pools and handle the demands of a giant market as we know "Uniswap"? And can other exchanges benefit from DEXG? (@Trigger_foxy)
Michel: Our ‘speculative’ AMM allows for orders of higher quantities without experiencing extensive slippage like on other decentralised exchanges, which highly benefits liquidity pool providers, which usually handle larger amounts of assets. With the benefits our decentralised exchange offers, like the decreased slippage and a fast order-book, we think that new projects will migrate naturally to it since we can offer a better and cheaper trading experience for their users. Meanwhile, arbitrageurs will make use of the different decentralised AMM models, further increasing the volume and participation on the exchange. Another important point is that high fees and slippage are leaving out huge markets that want to trade smaller amounts but can’t because the current options are just too expensive. We want to bring DEFI to as many people as possible!
Segment 3: Telegram Live Questions
(Chosen by DEXToken Protocol Team)
Q11. Smart contracts are vulnerable to bugs, and even recently three big new DeFi projects were victims of this, costing users funds. How efficient and secured is your smart contract, and did you ever audit it via any external party? (Harman Paji)
Michel: This is very important to us! We did an external security audit because once you deploy you want to be able to create trust and security is paramount in this. We were found free of any bugs and security vulnerabilities. Thanks, @Cryptotech3
Q12. Too many projects promise magic but never release any working product or prove any revenue, Within a short/long time of release. Is your project also like this? If not can u tell us, What makes your project different from other projects? (Morichika Morichika)
Alistor: As mentioned earlier, DEXG is built by the Flowchain Foundation, which has been working on blockchain and IoT technology for years now and released several updates to the existing infrastructure. DEXG is the next step for this ecosystem to grow. A good year, if not more, went into research, preparation and planning how DEXG and the speculative AMM it features should exactly look. We are very confident in our timeline of the beta release in late December 2020, which we will keep adding functionalities on in the following weeks and months. @washincha1
Q13. How exactly does the SPECULATIVE AMM work? Why is it better than the traditional AMM? (Winter Kommt 🥶)
Michel: Although I cant go deep into the technicals as its hard to do in a chat we do have a technical whitepaper on our site that lays the foundation for those who are interested in it. But the difference is exactly what the name suggests, the algorithm uses a combination of tools simultaneously to better serve the market and balance out the offer and demand. The idea that you buy on uniswap and don't even know exactly what you get is ridiculous really and we are looking to solve that!
Q14. Can you explain more about the Dextoken Swap Exchange? How does it work and what is the competitive advantage of the services that you have? Is Dextoken connected to Dextools? (rizal)
Alistor: First, the DEXToken Protocol is not associated with DexTools, even if the partly shared name would suggest so. The Swap exchange will feature our ‘speculative’ AMM, that does not need external-price oracles like Chainlink to provide price-data, but instead, it will determine the price by a volatility function on the blockchain. Additionally, the slippage with our AMM is way less compared to other AMMs, for example, the ‘Constant Product Function’ AMM of UNISWAP. This gives users a huge incentive to use our exchange. In terms of functionality it works like other decentralised exchanges, connect your wallet and you are good to go. A very interesting detail is the decentralised order-book though, we haven’t seen on other decentralised exchanges yet as well.
Q15. I am one of best ETHICAL HACKER AND EXPERIENCED DEVELOPER, do you have plans for HACKATHON so as to check the security of your ecosytem periodically and also invite developers to build on? (Valo lage Na)
Michel: Once we go into public beta we will hold a bug hunt for sure with rewards for anyone who is able to make our project even better. So keep following us once that goes live and show us your skills!
Links & Ressources:
- Official DEXToken Website
- Official DEXToken Staking dApp
- Official DEXToken Telegram Group
- Official DEXToken Announcement Channel
- Official DEXToken Twitter
- Official DEXToken Medium
- DEXG at Coingecko
- DEXG at Coinmarketcap
- DEXG at Etherscan
- Official DEXG Balancer Pool
- Trade DEXG on Balancer
- DEXG/USDT Uniswap Trading Pair
- DEXG Proof of Liquidity
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.