If you are a regular reader of Publish0x, you might have seen many posts explaining DEXToken Protocol in Detail, I have also posted detailed information on DEXToken protocol. In this post, I will be answering some questions that you might have.
DEXToken Protocol- unveiling a new era of finance
IF YOU ARE NOT FAMILIAR WITH SOME ESSENTIAL TERMS IN CRYPTO WORLD CHECK THIS OUT:
Stablecoin: Cryptocurrency like Bitcoin and Ethreum are subjected to high price changes. The best explanation for this is they are decentralized and the price is decided by the market, and the most probable factor will be the trades itself. The price of these cryptocurrencies is decided by its demand and it has an estimated market volatility of +or - 50%. Stable coins are issued with reserve collateral. The collateral can be Fiat currency, gold, oil, or any other expensive commodity, another cryptocurrency itself can also be used as collateral ( collateral value is estimated by taking account of possible market fluctuations). These coins show very low price volatility and are hence stable.
DEX and CEX: Decentralized exchanges and Centralized exchanges are two ends of a boat. CEX or Centralized Exchange refers to your conventional exchange. Prices get controlled by decisions and announcements, they are also affected by market speculations. Established rulebooks exist and governmental agencies monitor everything. Decentralized exchanges like the word itself are decentralized no single entity or government has control over it. In this system the price is determined by the open market trading and cryptocurrencies are created on open blockchain networks.
AMM: Automated Market Maker is a method to enable the blockchain network to determine a fair and reasonable price for an asset. It is said that AMM can remove high market volatility generated by over speculation.
DeFi & CeFi: They stand for centralized and decentralized finance. CeFi is the conventional financial system and it still has a very high following, DeFi received much popularity in 2020 since it is a completely Decentralized system. As of now few DeFi projects are already up and running and are expected to reach the mainstream soon.
Smart contracts: It can be seen as a set of codes that form a command and automatically executes it when the conditions are met.
What is DEXToken Protocol?
DEXToken Protocol is a new Defi infrastructure, it is unique in several aspects. DEXToken Protocol introduces a new algorithm that can successfully ensure the legitimate pricing of cryptocurrency. This project ensures that decentralization is effectively employed.
Who is behind DEXToken Protocol?
Flowchain Foundation, led by lead developer Joellen Chen launched the project back in 2018. The Singapore-based Flowchain foundations DEXToken Protocol is expected to hit mainstream since the Defi industry is blooming now.
Why is it Unique?
The answer is very simple, the new pricing algorithm introduced on DEXToken Protocol. Most of the pricing power now stays with centralized changes. Even though there are Decentralized cryptocurrencies the pricing of these cryptocurrencies is not done properly. DEXToken Protocol Introduces Speculative AMM.
What is Speculative AMM?
Speculative AMM removes the effect of over-speculation on the prices of crypto assets. This method allows the blockchain to set a reasonable price for each and every trade. The price will be set by taking into the number of transactions, properties of blockchain, number of users and etc.
How will the trade happen?
The change interface will have a buy button, when you input the required quantity the request for trade will be fed to the system in the proper queue. The trade will be executed at the most reasonable and fair price from the staking pool. If the requirement cannot be met from the staking pool it will be marked for further fulfillment and will be executed at the output price from the Speculative AMM algorithm.
What is $DEXG?
$DEXG is the governance token. The project describes it as the ideal and perfect token based on blockchain. It is not a stable coin but its value is stabilized using Speculative AMM. It is an ERC 20 token that has an initial supply of 20,000 and a maximum theoretical supply of 200,000.
What is the connection of OFF Chain Tokens in this project?
The project has an established potential to mint off-chain tokens, these off-chain tokens can be regulated using on-chain smart contracts. The transaction records of the minting are then submitted to the public Blockchain.
A GENUINE CONCLUSION
DEXToken Protocol has every potential to reach mainstream finance systems. The project aims at defining the true power of Decentralization and creates a highly unique and working pricing model. Decentralized Finance received much attention in 2020 so far. DEXToken Protocol has the essence to empower Defi and enable a successful and sustainable economic model.
