This whitepaper outline the fundamentals of DexAsian protocol and its underlying concept of meeting three core pillars - Static Rewards, Automatic Liquidity Pools, and a Manual Burning Strategy
Dex Asian (DEX) is the digital token that represents the Dex Asian website and Dex Asian AMM. By allowing buyers and sellers to exchange value directly with other market participants - the DexAsian Swap/exchange ensures that there is no requirement to go through a centralized third party.
• Static Rewards
• Automatic Liquidity Pools
• Manual Burning Strategy
In order to achieve its decentralized goals, the protocol is supported by a native digital token - Dex Asian (DEX). This token operates on the Binance Smart Chain and can be exchanged between users on a wallet-to- wallet basis.
Users are encouraged to hold their Dex Asian tokens on a long-term basis. This is because transactions are taxed at a rate of 10%. As a result, this discourages day trading - which has the undesired effect of causing increased volatility levels and wild pricing swings.
Perhaps most importantly, 5% of this figure is distributed to existing Dex Asian token holders, which in itself, is not too dissimilar to conventional dividend payments. The other 5% is utilized to provide liquidity to decentralized exchange services.
A major benefit of holding Dex Asian tokens is that users have the opportunity to earn dividends via a static reward system. Before getting to the specifics of how this works, it is important to note the issues that static rewards solve.
In the vast majority of cases, early backers of a newly launched digital currency will look to sell their holdings as soon as the asset hits an exchange. Naturally, this results in downward pressure being put onto the cryptocurrency in question. At the other end of the scale, you have digital currencies like Dex Asian that promote and reward long-term buy and hold strategies.
That is to say, by selling or exchanging Dex Asian for another cryptocurrency, the user will incur a 10% tax. 5% of this tax will then be distributed proportionately between existing token holders.
See below for a simplistic example of how static rewards work when holding Dex Asian tokens:
Let’s suppose that the number of Dex Token you are holding is the equivalent of 1% of the total supply
• Somebody sells 40,000 Dex Asian tokens in the open marketplace
• 10% of this is taxed - so that amounts to 4,000 Dex Asian tokens
• 50% of this - or 2,000 tokens, is then distributed for the purpose of exchange liquidity
• The remaining 50% - or 2,000 tokens, is distributed across all Dex Asian holders on a proportionate basis
• As you hold 1% of the total supply, this means that you receive 20 Dex Asian tokens It goes without saying that the above example highlights that static rewards operate much the same as a conventional dividend payment. This is because you have the potential to continuously grow the number of Dex Asian tokens that you have in your possession.
Crucially, this 5% reward distribution will take place each and every time somebody elects to buy or sell Dex Asian tokens.
A further concept that is important to Dex Asian is an ongoing burning program. For those unaware, when a cryptocurrency token is burned, this operates much in the same way as a share buyback program.
This is because by burning tokens, the overall supply is reduced. More specifically, when there are fewer tokens in circulation, this has the desired impact of increasing the market value of the respective digital currency.
See below for a simplistic example of how token burning can impact the value of a cryptocurrency:
• Let’s suppose that a cryptocurrency project has 10 million tokens in circulation
• Each token has a market price of $1
• In turn, this means that the cryptocurrency has a total market capitalization of $10 million
• The team behind the cryptocurrency project implement a 5% token burn
• This means that the total token supply has gone from 10 million down to 9.5 million
• Based on a market capitalization of $10 million, this means that in all likelihood, the value of the token will increase to just over $1.05 - as per the forces of demand and supply
In terms of the specifics, some cryptocurrency projects will elect to facilitate their burning strategy on an automated basis. As an example, cryptocurrency project SwissBorg will automatically burn tokens when the 20-day moving average enters a bearish pricing zone.
However, the team at Dex Asian argues that this is not an effective long-term burning strategy. This is because an automated approach to burning cannot be undertaken indefinitely. On the contrary, this eventually would result in the total supply of the token reaching zero.
This is why Dex Asian has made the decision to utilize a manual burning strategy. Crucially, a burn will take place when conditions are favourable for the Dex Asian community.
When the management team believes that it is the right time to burn an allocation of tokens, this will be discussed in an open, fair, and transparent environment with Dex Asian holders.
The team at Dex Asian are huge proponents of Automatic Liquidity Pools. Before we discuss why this can be hugely beneficial for long-term Dex Asian token holders, it is important to briefly explain how Automatic Liquidity Pools work in practice.
In a nutshell, a lack of liquidity has been one of the biggest challenges for decentralized exchanges. This is because the digital currency trading industry is still dominated by centralized operators
As a result, at a time not so long ago, being able to swap one cryptocurrency token for another was challenging when going through a decentralized platform - as there was little to no trading volume to facilitate buy and sell positions
This is why Dex Asian has taken advantage of Automatic Liquidity Pools. Put simply, when users put their digital currency holdings into Liquidity Pools, they have the opportunity to earn a fixed rate of interest.
The decentralized exchange in question is able to pay interest from the commissions it collects from buyers and sellers. In the case of Automatic Liquidity Pools, the underlying mechanism is based on smart contract technology
That is to say, unlike a conventional cryptocurrency exchange or broker - which utilizes centralized order books, Automatic Liquidity Pools does not require another participant at the other end of the trade
In other words, there is no requirement for a seller to be present when a user seeks to buy a digital currency from a decentralized exchange, as Automatic Liquidity Pools will facilitate the trade in an autonomous manner. In terms of how this can benefit long-term Dex Asian token holders, this is two-fold.
First and foremost, there is every likelihood that pricing levels of the respective Dex Asian will stabilize and thus - reduce the risk of high volatility. This is because each Dex Asian transaction collects tokens from buyers and sellers via the aforementioned taxation policy.
The second core benefit is that a portion of the collected tax from trading transactions will be added to the wider Automatic Liquidity Pool. In turn, when so-called whales offload a large number of tokens - which is just part and parcel of the cryptocurrency industry, this will not result in highly significant downward pressure on pricing.
Dex Asian Swap is an innovative decentralized exchange that allows buyers and sellers to trade digital currencies directly with other market participants. This means that instead of having to trade crypto assets through a centralized third party - Dex Asian Swap conducts token exchanges via the aforementioned Automatic Liquidity Pool.
In addition to the facilitation of swapping one digital currency for another in a decentralized manner - Dex Asian Swap will also host a number of other notable features.
For instance, V1 of the exchange will include a framework for users to farm and stake digital assets - subsequently allowing token holders to earn interest on idle cryptocurrencies. In terms of supported digital tokens, Dex Asian Swap will host a significant number of projects from a multitude of blockchains. This will include large-cap projects that benefit from high levels of liquidity - as well as newly launched tokens that have just entered the market.
This will present many opportunities for users to enjoy above-average market yields. For instance, users that wish to engage in farming on the Dex Asian Swap exchange will lend their digital capital to an Automatic Liquidity Pool. In turn, this will provide the user with an attractive yield for as long as the tokens remain in the respective pool.
Alternatively, users may wish to target staking rewards on the Dex Asian Swap exchange. This will see users lock their digital tokens for a certain number of days to help validate transactions on the respective blockchain network. In turn, interest will be payable for as long as the tokens remain locked.
The next phase of the Dex Asian Swap exchange - hereon referred to as V2, will upgrade the platform with additional core features.
This will include:
• Technical Analysis:
Many successful cryptocurrency traders rely exclusively on technical analysis
to help predict the future direction of the market in question. Taking this into account, Dex Asian Swap V2 will offer an in-house suite that will contain numerous technical indicators and charting tools.
• Video Analysis:
The Dex Asian Swap exchange will also host and publish market insights and analysis in video format. This will allow users of the exchange to gain useful knowledge of current market conditions and insight into specific tokens and projects that offer potential trading opportunities.
V2 will also see Dex Asian Swap conduct regular webinars. This will follow a similar concept to the aforementioned video analysis - albeit, in real-time. As such, listeners of the webinar will be able to ask questions to experienced cryptocurrency traders, investors, technical analysts, and more.
To ensure that users are kept abreast with key cryptocurrency and Dex markets updates, V2 will post relevant news stories and developments throughout the day.
Following on from V2, DexAsian Swap V3 will upgrade the platform with more notable features.
This will include:
In addition to technical analysis tools, V3 will introduce research materials. This will allow users to gain insight into the fundamentals of the digital currency they are looking to trade.
The DexAsian Swap forum will allow users of the exchange to communicate with the community in a safe and transparent manner. Crypto Signals: V3 will also introduce crypto signals to the exchange. In a nutshell, signals are not too dissimilar to trading suggestions
- meaning that users will be provided with core data on which token to trade and at what entry and exit prices.
To gain even more insight into the cryptocurrency and Dex Asian arena, V3 will introduce interactive charts. This will particularly appeal to inexperienced traders that wish to view charting data in a more user-friendly manner.
Users will also be able to track current positions via real-time market data. This will breakdown the specifics of how a digital token is performing on a second-by-second basis.
To further interact with its users, the team at Dex Asian will also run regular podcasts. Each podcast will extract the views and insights of an experienced stakeholder in the cryptocurrency and Dex landscape.
END of WHITEPAPER