REX: the First Certificate of Deposit Token on the Binance Smart Chain
The controversial cryptocurrency HEX, designed and launched by Richard Heart in December 2019, was the first Certificate of Deposit token to ever exist on a blockchain. The token was designed to store value and replace traditional Certificates of Deposit.
HEX essentially allows users to stake their tokens for a share of the new token issuance and is made to disincentivize users from harming the cryptocurrency’s price or moving their funds after they are staked.
Stakers are penalized for ending their stake early and are rewarded for staking larger amounts over longer periods. It’s based on the Ethereum network as an ERC-20 token.
Being an inflationary token, disincentivizing users from moving their stake means that when the money is needed, rewards may be significantly cut off. Moreover, being on the Ethereum blockchain means high fees that will cut into users’ bottom lines.
An alternative to HEX is a new token based on the Binance Smart Chain (BSC) called REX. It’s a cryptocurrency that acts as a Certificate of Deposit that provides users with premium interest rates in exchange for staking.
What is REX?
REX is a cryptocurrency designed for the storage and transmission of values, with an integrated staking function – similar to HEX. It offers a higher rate of return than traditional Certificates of Deposit and immense flexibility by bringing in a plethora of new functions.
Users can name their stakes to keep track of their purpose – a stake can be for example named “vacation plan” so the user knows the funds are reserved for some time off. In case investors need funds, they can scrape off interest from immature stakes to avoid penalties.
Its flexibility goes even further, allowing stakers to split a specific stake into two in case they need to transfer their stakes to a different address. If a stake was meant to be a gift, it can simply be transferred to the receiver.
When a stake is opened, the $REX is burned and converted into SHARES. These SHARES represent the stake’s size and length. The price only increases over time and is determined by a global “SHARE price” tracked in the REX contract.
The REX ecosystem consists of several smart contracts on the Binance Smart Chain, so it offers the security and immutability of one of the largest blockchain networks in the world.
Swapping REX Over Decentralized Exchanges
Swapping REX on the Rex-Token.com website allows investors to participate in auctions and mint new tokens themselves. REX’s token supply is generated via daily auctions with a total of 3 billion $REX tokens being minted over the course of the first year.
Daily, randomly selected REX holders’ addresses receive BNB rewards in the BigPayDays feature. This means that those who have participated in the auctions may just get back the BNB they used to buy $REX in the first place – something you will usually not see on decentralized exchanges.
On top of all this, from day 1 a total of 8,000 REX addresses are eligible to claim free #REX tokens. On claiming, the smart contract creates a new stake for users with these new tokens. A total of 292 million $REX will be minted for these free claims.
A portion of the BNB from the acquisition of $REX will be used to slowly add liquidity to PancakeSwap. Over time, this liquidity will allow investors to easily cash out and trade $REX based on their beliefs of its price performance.
The REX ecosystem has the $REX token at its heart, but there are two additional tokens stakers can take advantage of to increase their earnings and flexibility. The tokens are:
$TREX – This is an optional token that improves the user experience. Addresses holding at least 1 TREX can get higher limits at auctions, improved referral rewards, and always the initial SHARE price when staking. To get $TREX investors must send exactly 1 $BNB to the TREX contract. After doing so, the tokens are automatically minted to the sender’s address. A total of 1,000 $TREX will exist, with 1 being the limit per address.
$MREX – The $MREX token supply is limited to 10,000 with a 20 cap per address. It boosts referral rewards, unlocks special functions such as naming and moving stakes, and improves limits on auctions.
To get $MREX investors must send multiples of 0.1 $BNB to the MREX contract. Every 0.1 $BNB equals 1 $MREX token minted at the senders’ address.
The REX website provides functions allowing users to easily buy tokens on their dashboard. It also makes it easy to stake $REX tokens. When staking, tokens are locked for a period of time to earn interest.
When a stake reaches full maturity, investors can close the stake to receive their principal plus interest without penalty. After a stake’s maturity, a 14-day grace period starts, after which interest is cut by 1% per week.
Earnings in stakes come from SHARES as well as the supply inflation of $REX, which is 5% per year. The longer a user stakes the better it is to benefit from an increase in the price of SHARES.