DeXe.network or how mathematicians decided to keep investors busy
Hello ladies and gentlemen!
In this article I will try to explain to you what DeXe.network is.
Project was audited by experts from Hacken (who researched Chainlink and EOS) and cooperates with OrionProtocol. DeXe team has experience in investing as a fund and has already successfully launched social trading product for centralized exchanges (Billtrade). There are many funds, including big Chinese ones (Telegraph).
DeXe.network is a decentralized and autonomous online ecosystem (DAO) for managing portfolio of cryptocurrencies, operating on autonomous smart contracts. These smart contracts implement functions of currency distribution, rebalancing, and secure data transmission (such as APIs, private keys). They are basis for interaction within the framework of DeFi (decentralized finance).
Today DeXe.network is the only product on market that offers such opportunities.
Why DAO, what is social trading?
Social trading is the interaction of traders in a specific environment, the main form of which is copy-trading. To copy-trade, user just need to register on special platform, connect wallet, choose trader he likes, connect to his/her profile. After that, all trader’s trades within the instruments available on platform are copying by this user.
However, majority of such products are centralized, has a little set of tools and provides few opportunities for users. DeXe took the opposite path of DAO:
- Project is built on the community. Its members are independent, can easily access service and leave it, regardless of location and regulations. They choose the vector of development of project through voting, and all the code is open-sourse. More openness, more privacy, more trust.
- Project is autonomous because of smart contract. All actions with assets within the platform are carried out automatically, which excludes human factor. There are no CEO, COO, CTO, value of opinion is determined by the contribution to system.
- Project interacts with other smart contracts and allows traders to create their own. When they trade on CEX through project terminal, the signal comes from CEX, but copy-trade takes place on DEX. So trader manages follower’s funds, but does not own them. Effectiveness of traders is determined by the value of token tied to the smart contract they created. DeXe platform token and traders tokens are different things!
- Project has its own governance token. With it voting takes place and insurance fund formes.
This is the main idea of DeXe.network — to make social trading open, safe, expand functionality and give users their own control over risks and finances.
How do these mechanics work in DeXe.network?
Each owner of DEXE token is part of the community and has right to vote for changes (1 token = 1 vote), propose them, become a representative and take actions to improve the platform, receiving a reward in DEXE tokens for this.
There are two voting levels in total:
- Global Environment
- Local among trader’s followers on finance issues
For example, community members can vote to exclude a member who maliciously interfered with the protocol. Excluded person does not lose his tokens, but loses other rights. A trader’s subscribers can vote for participation in a sale with their own funds, or, conversely, refuse it.
Regardless of what changes in the development team, the platform will continue to be successfully regulated by users and implement current functions through smart contracts. Moreover, majority of changes can be implemented by the protocol automatically, without human intervention.
User sends funds to the protocol and in return receives protocol (LP) token for the amount of invested funds — index of trader’s effectiveness. User can do with his LP token everything that he can do with other LP tokens. With an increase of funds in protocol (for example, after a successful trade), the price of token increases accordingly. By voluntarily transferring it back to the smart contract, user receives his/her asset and profit earned by trader. If trader himself decides to pull his funds out of the smart contract, he will no longer be able to manage it. Users will also be able to withdraw their funds and profits at a fixed trader’s token price. Also, this model allows to reduce the cost of commission, since it is not charged from each user individually, but from a smart contract, which contains funds of several wallets at once.
The project token is not a direct investment, speculation or fundraising mechanism. It’s main purpose is to build a decentralized and autonomous ecosystem. It is logical that if the network is successful, it’s token grows in value.
Interests of the parties
Project developers decided to choose the most honest model of trader’s reward — a percentage of profit. Each trader sets this commission himself (from 20 up to 70%) and chooses when he wants to take it (when withdrawing, once a month or other options).
Trader himself also pays a commission to the project’s smart contract, which is 30% of his profit. These funds are used to buy DEXE token from market. Purchased in this way tokens are distributed as follows:
- 10% burns
- 10% credites as reward to farmers
- 10% goes to the insurance fund
Ordinary users get opportunity to save and increase their funds, thanks to more experienced market participants. All they have to do is look at trader’s detailed statistics provided by the platform and select one with a suitable investment / trading approach. Holders of DEXE tokens can insure funds, participate in platform management, stake and farm.
Security of funds and users
All solutions on platform are in the hands of community: starting with connecting a wallep, up to introducing new representatives. So the platform is not responsible for human errors (unprofitable transactions), but ensures safety of personal data and rights through smart contracts.
However, team tries to limit risks by developing coefficients system. Amount of funds available for trader’s management depends on his/her own balance. For example, with $ 1000, the coefficient is 0.5 and trader can manage 1000 * 0.5 = $ 500, with $ 2000 it is 2000 * 1 = $ 2000, and so on. When trader increases own funds, the coefficient increases too. Trader is only able to manage a limited amount of funds. If the community wishes so, it is possible to vote for the decision to increase management limit for a certain person
DeXe provides detailed statistics of each trader so risks for participants become much more transparent.
There is a constantly growing insurance fund for special cases. To insure their assets, users need to deposit 1–10% of total funds in DEXE tokens. In case of losses, community conducts a vote in which it is decided whether to reimburse the victims. If the answer is yes, compensation is carried out in full or in part, based on size of the insurance fund and victims stakes.
Trader cannot use follower’s money into dubious projects (which have not been accepted at the platform voting level) without a vote. Profit / loss from this investment will concern only those who voted “yes”. This feature does not apply to assets accepted at the platform level (voting by DEXE tokens). It is up to users to decide whether to take risks that go beyond the community’s project security.
Token name — Dexe
Ticker — DEXE
Network — ERC20
Total volume — 100,000,000 DEXE
In circulation at the end of the sale — from 2,000,000 to 6,000,000 DEXE (depends on sales and burning in the process)
The allocations are:
Public sale — 5%
Staking rewards — up to 10% (vesting — gradual defrosting every second — for 12 months)
Fund — 33% (freeze for a year and vesting for 48 months)
Team — 20% (freeze for 6 months and vesting for 24 months)
A note: based on allocations, it can be assumed that the majority of tokens are held by the team, same with votes. But it is possible to vote only by unlocked tokens, and by the time when team’s tokens are fully unlocked, community allocation will be larger.
Partners and ecosystem — 16% (freeze for 3 months and vesting for 12 months)
Trading schools and traders’ tournaments — 10% (freeze for 2 months and vesting for 12 months)
Marketing — 5% (freeze for 1 month and vesting for 12 months)
Market Liquidity Fund — 1% (bold hint about DEXE)
The project needs token to support the idea of full decentralization and to ensure safety of participants funds, realize buybacks and burning mechanics.
Users need a token to:
- Receive rewards for hold and staking
- Get insurance coverage for funds
- Vote at the platform level
- Promote to platform representatives who will receive rewards for contributions to development in DEXE
All these and other mechanisms stimulate liquidity and control price: with a working platform, users earn money, tokens are burned, the rate grows, there is no point in price dump. You can even better understand its purpose by reading about public sale procedure.
Project does not and did not have a private sale, the only way to purchase DEXE token is to participate in public sale or wait for listing. So foundations enter at the same price as ordinary people — this is a great opportunity for individual investors. The whole process is divided into 22 rounds 24 hours each. Vesting procedure and defrost countdown starts right after the end of all rounds. If some round has not been fully redeemed, its investors receive a discount on next (the size depends on the number of tokens sold) and an increased stake reward. Unbought DEXE will be burned. There are no caps restrictions, USDT, USDC, ETH are accepted.
The first round will take place on September 28 and is exclusive — only those who have contributed to the project participate. 20% of total sale tokens is allocated for it — that’s 1,000,000 DEXE. Based on results of the first round, DEXE first price will be formed according to the formula:
Amount of funds raised / Amount of DEXE in first round
If $ 500,000 was invested, then 500,000 / 1,000,000 = $ 0.5 — the price for next round start.
Price changes during the sale (this could be observed with PERP and EOS) and is formed from a set of factors:
- Exchange trades. Soon after start of the sale, DEXE token will be listed.
- Participants demand. Since there are no caps restrictions, according to results of each round, the cost of token changes depending on the funds invested in round.
Tokens are distributed among all investors at the end of round according to the funds invested. Overbought round will strongly pump the price, which makes it unprofitable to buy a large volume in one round — another advantage for individual investors over foundations.
From the second round, staking system starts to work, to use which it is enough not to sell your DEXE. Staking rewards are awarded at the end of each round and are as follows:
Basic reward. For participants in first round — 5%, for the rest — 2% of invested funds.
Double reward. To obtain such in the current round, investor must invest in it at least 1% of the amount that he invested before. If you invested N-th amount in 2nd round, then in 10 you can get a double reward if you buy tokens for another 1% or more of N-th amount, and the amount itself will become N = N + 1% (or more) for more doublings. If conditions are met, first round participants receive a 10% reward, others receive 4%.
For example, if you bought 1000 DEXE tokens in first round, then by purchasing 10 or more in fifth round, you will receive a 10% staking reward. To get the same in eighth round, you need to buy 1010/100 * 1 = 10.1 DEXE and so on.
Increased reward. If, as a result of the round, there are unbought tokens, staking reward increases in proportion to their number (up to 40% per round).
Formula for calculation in case of first round investors:
(-0.15 * Percentage of redemption of the round + 20.02) and for doubled rewards this is multiplied by 2
Formula for calculation in case of 2–22 round investors:
(-0.06 * Percentage of round redemption + 8) and for doubled rewards this is multiplied by 2
For example, if only 25% of allocated tokens were bought during round, basic investor reward of first round will be -0.15 * 25 + 20.02 = 16.27% (doubled = 32.54%), and for the rest -0. 06 * 25 + 8 = 6.5% (doubled = 13%).
The discount on DEXE purchase under such conditions will be 7.5% of current market price. Maximum discount is 10% at 0% token redemption, and vice versa. Simple proportion.
Staking rewards will have vesting for 12 months, however, there are options for unlocking part of them after round 10, in accordance with the conditions:
- If token price increases 7 times the average DEX price for 2–10 rounds, participants will be able to unlock 10% of their staking rewards with a 14% commission (in DEXE tokens).
- If token price increases 10 times the average DEX price for 2–10 rounds, participants will be able to unlock 15% of their staking rewards with a 20% commission.
- If token price increases 15 times the average DEX price over 2–10 rounds, members will be able to unlock 20% of their staking rewards with a 30% commission.
- If the token price increases 20 times the average DEX price over 2–10 rounds, participants will be able to unlock 30% of their staking rewards with a 40% commission.
Options will be be unlocked one after the other, so in the case of x20, all 4 defrosting options will be avaible to users. Collected commission will be burned.
So the most profitable and easiest option seems to be early investor in first round and stake DEXE for doubled reward.
After the platform launch, farming procedure opens. Only unlocked DEXE are involved. Participants of public sale receive increased % relative to those who bought from exchange, and they are the first in queue for receiving rewards. To receive increased rewards, you must submit an application within 10 days after the end of public sale. The distribution will be in the currency that follower uses. Let me remind you that farming rewards are formed from commissions on trader’s proft. So by the time farming is launched, DEXE token will already be traded on DEX and CEX exchanges.
Every day after launch of the public platform part, at a random time, system fixes DEXE balances on wallets. At the same time, average hold time is calculated until full release of DeXe.network. Total amount of tokens is divided by average number of tokens held by user during the period from purchase up to product launch, and the ratio between total and average balance is formed. Based on this ratio increased reward is calculated.
Increased farming rewards:
100% — 100.99% = x3 coefficient for “hold days” and “farming reward”
101% — 124.99% = x4 coefficient for “hold days” and “farming reward”
125% — 149.99% = x6 multiplier for “hold days” and “farming reward”
150% — 174.99% = x9 multiplier for “hold days” and “farming reward”
175% — ∞ = х13 coefficient for “hold days” and “farming reward”
Hold Days coefficient is multiplier for number of days your farm rewards will be frozen relative to number of days DEXE tokens were held.
Farming reward coefficient is the number by which the usual farm reward is multiplied.
100% -100.99% — ratio of final and average balances (divide total by average).
Period of time during which farmer receives increased reward is calculated using the formula:
Number of days during which tokens were in the wallet (from the moment of purchase up to launch plarform launch) * coefficient Days of hold * coefficient Farming Reward.
Results and conclusions
DeXe is about profitability, but not for ordinary flippers. This is especially true for public sale, on which only speculators who understand it earn. Farming, staking, platform itself and its economy are passive instruments of adequate investor, not one driven by his FOMO about multiplies.
Is it safe? Yes. Autonomy, good audit, experienced developers, locks for foundations and team, risk insurance, supporting the economy and attracting new investors — there are really many levels of security.
Will there be multiplies? Yes. Growth drivers, burning, listings, many incentives to purchase DEXE token and participate in management (how not to participate if you invest?). Also add tokens of traders that have some NFT properties (hello to trend 2021). And don’t forget that this is DeFi.
Should I participate in the sale? Yes. Prerequisites for FOMO already exist — early listings on CEX and DEX (1% of all tokens have been allocated for the liquidity of dex, DEXE buyback is needed for farming rewards so link two facts and get an approximate date).
What is the best way to get profit? Do not invest the whole dep at once, but throw in a part, and in the process of selling, buy in addition, thereby increasing reward for staking, then participate in farming with an increased percentage. There is also an opportunity to speculate with price during public sale, depending on fullness of rounds (invest only when there is a discount, and then sell on the exchange). Everyone develops his own strategy and thinks with his own head!
Problems? Sure. The main thing in my opinion is complexity. Team is launching a huge ecosystem, every aspect of which requires detailed mathematical calculations. Those who figure it out, will multiply their dep. Those who do not understand, at least will not lose (funds insurance) dep.
This article is intended more for investors than for traders or potential users: it will be possible to tell about platform features only after it’s launch.