DeFi stands for “Decentralized Finance” also called Open Finance which is one of the fastest-growing sectors in an ecosystem that comprises of financial applications that are being developed on top of blockchain systems.
With more than $4 billion in assets locked up in Defi projects, this is a global alternative for all financial services like savings, loans, trading, insurance, and etc., are more accessible to anyone through smart contract blockchains like Ethereum which offers an open and permissionless system that is easily available to everyone.
Recently another project aim to build DeFi's ecosystem, it was hosted by an independent body based in Singapore whose aim is to oversee the Flowchain open source project and build its ecosystem-Flowchain Foundation, this project called DEXToken Protocol.
Understanding the Project
According to the Flowchain Foundation, Dextoken Protocol is a DeFi infrastructure that implements the brand-new Speculative AMM. It uses Speculative AMM to ensure the token's levels at which price frequently makes a decision(good profit) and benefit DEXG token holders by rewarding them a portion of the transaction fee.
If you are a holder or a future holder of DEXG token then it is a great news for you, to hope that this project will bring you a good fortune, However there are questions you need to consider such as, how much will you get from the transaction fee?, Will it be consistent? and other possible questions regarding this project.
Moreover, Flowchain Foundation defined Speculative AMM, as a priceless automated market maker. It determines the token price based on the volatility(price movement), and it is a Universal Price Model that can evaluate the price of tokens.
As what it defines, we can determine that DEXToken protocol, with the use of Speculative AMM, aims to create a "perfect token"-one which volatility characteristics are low, if they can slowly and surely pull it of, then DEXG token will surely made its investors very happy and it will be another breakthrough of DeFi.
Other key features to remember
DEXToken Protocol has an off-chain issuable token technology to provide minted token redeem and user withdrawal capabilities. It can also provide a scientific minting mode for both off-chain and deflationary tokens.
Eight Rounds. The staking reward distribution will span over eight rounds, with the first round going live in September 2020.
Locked Staking. DEXG Holders will need to lock their DEXG in the Staking dApp.
Increase Supply. Locked Staking is a token distribution mechanism to increase the circulating supply by directly rewarding holders with the supply based on the proportion to what holders already hold.
Balancer - DEXG/USDC
Uniswap - DEXG/USDT
VCC - DEXG/ETH
Vitex - DEXG/ETH
Note: Uniswap (v2) is the current most active market trading it. Source:coingecko
In the upcoming year 2021, Speculative AMM will be expanded and its product line:
1. Inflationary Tokens Speculative AMM
2. Off-Chain Tokens Speculative AMM
3. Derivatives Tokens Speculative AMM
And in the following year 2022, Flowchain will closely align with government policies and actively develop into a service provider for IoT finance, digital finance, and decentralized finance.
Now, is it worth it?
The answer is still not clear, but one thing for sure, the host will do its best for this project to become successful. With the current price of $57.08 (as of October 15, 2020), we could say that, it is not a bad start for you to consider this project having the potential to compete other Cryptocurrency. In addition the success of this token will always be dependent to its investors, the more people who will hold this token, the more it will become successful.
For you, is it worth it?