We are nearing the biggest milestone of our Decentralized Exchange Protocol and this article will not only take you to a brief ride through our almost-a-year long journey on Cronos but also introduce you the next stage our protocol is embarking upon.
CRODEX opened its doors to #CROFAM immediately after Cronos Mainnet was launched back in November 2021. Our platform token CRX, which has a hard capped total supply of 100000 only, drew a lot of attention both at its pre-sale phases and upon its launch as an early DeX utility token on Cronos. Soon after, CRODEX brought its round-based reward program to life and our early investors enjoyed the plenteous rewards by investing in CRX or providing liquidity on our platform. We have always been actively collecting feedback from the community, which have guided us to make welcome upgrades like auto-transition mechanism in reward pools, many UI refreshes and added swap functionalities. We also have managed to present a wide variety of DeFi products such as local charting, auditor (permission revoker), protocol analytics tool, CROWD Launchpad and the most prominently the Metaverse Hub, which is a whole ecosystem of NFTs and Metaverse assets integrated with our DeFi environment. We have also partnered with numerous projects on Cronos exchanging expertise and facilitating mutual growth.
Our platform has reached its current maturity upon the foundation provided by CRX token. We will be celebrating the opening of the new era of our protocol as the circulating amount of CRX reaches its hard-cap of 100K tokens very soon. Moreover, the last portion of vested CRX tokens purchased in the pre-sale were released last week. In other words, CRX is entering a pure deflationary phase for good since no more CRX will ever be emitted again once the current reward pools expire within week’s time. This implies there will be zero sell pressure on CRX induced by the protocol.
Having passed the abovementioned checkpoints, CRODEX proudly introduces its new, reformed protocol by which it is going to be sharing its platform revenues with CRODEXers. Our team has been working diligently to design and build a system that provides a seamless experience to our community while adopting the new protocol. It consists of two tokens: xCRX and rCRX, and an intermediary instrument: xVault.
Out of the 3 main elements of the new protocol, xCRX is the one to take over the role of CRX as the main protocol token. CRX will keep its current properties and continue providing rewards while being in a deflationary state. The future growth of the platform will be built upon xCRX. The main focus of the protocol is going to be keeping a healthy liquidity for xCRX and adding more utilities as the platform grows on top of what it already holds.
Protocol Overview
The new protocol consists of 3 elements:
- xCRX is the main token of the protocol
It is tradable and will keep its main liquidity in xCRX / CRO.
It incurs a 9% fee-on-sell. Upon each sell transaction, the entire fee will be distributed proportionally to rCRX holders in xCRX as dividend. CRODEX will not receive any additional fee. - rCRX is the auxiliary token of the protocol
It is NOT tradable.
It acts as a receipt representing its owner’s share of platform revenues and xCRX dividends.
It cannot be transferred to another wallet. - xVault is the intermediary organ of the protocol
xVault allows users to pledge their xCRX tokens to receive rCRX.
Once xCRX is pledged into xVault, a lock timer of 15 days is set. Until the lock expires, the user cannot redeem any of their xCRX. Every time the user pledges more xCRX into xVault, the lock timer resets.
By holding rCRX, the owner accumulates xCRX in their xVault account which they can claim at any time.
Only to be absolutely clear, the accumulating xCRX in the xVault accounts come from two sources:
- xCRX sell fees, as explained above.
- A variable percentage of the revenue CRODEX makes from the swaps across the platform.
The percentage of the shared revenue depends on the balance between the platform’s expenses and earnings at a given time; but it cannot go lower than 40%. The revenue shares will be distributed at least once every 15 days at a random time. Therefore, the lock period of xVault does guarantee that the investor receives at least 1 portion of shared revenues. Also, it is a way of rewarding the true believers while supporting price stability. The lock duration can be re-adjusted in the future.
It is also worth noting that the sell fee on xCRX will act as a safe guard to effectively prevent possible market manipulations through financial derivatives.
The following is a comprehensive diagram that outlines how you can invest and earn in the new protocol.
Tokenomics of xCRX
Total Supply: 500M $xCRX
Initial Supply: 13M $xCRX
It will be reserved for initial token sale and xCRX-CRO liquidity formation.
Short-Term Supply (up to 2 years): 37M $xCRX
It will be used for development, partnerships, promotional activities, liquidity management.
Long-Term Supply (up to 10 years): 450M $xCRX
It will be allocated to CRODEX community members through Liquidity Provider (LP) & Single token staking in our renewed reward program.
Extended info on xCRX token and the details of its launch process are going to be announced very shortly.
A few concluding words. We would like to thank all CRODEXers for this great journey we’ve had together, through good and bad. Regardless of the negative macro-market movements of late, we are devoted and focused to keep going and deepen our roots on Cronos. Let’s keep growing!
