DEXG ‘LUNA’ Staking Round

6 min readOct 9, 2020

With the first ‘IGNITION’ round we saw over 80% of the tokens staked and 6,500 DEXG were distributed to the holders. This was more than we initially anticipated and a huge step towards decentralisation of the DEXToken Protocol. With the first staking round concluded, we are now moving ahead on the staking timeline, presenting LUNA.

This second staking round adopts a liquidity locked, staking model utilising our DEXG/USDC shared Balancer Pool.

Please refer to our previous announcement for a detailed explanation of the pool.

Continuing with our staking and supply distribution model, the ‘LUNA’ staking round will distribute 5,250 DEXG as staking rewards. This takes into account the existing ATH and an active user base of around 700 wallets. Accordingly, the circulating supply will increase from currently 30,500 DEXG to 35,750 DEXG after the ‘LUNA’ staking round concludes.

LUNA Round Quickview

DEXG/USDC LP Balancer Pool Tokens (BPT)

Upon providing liquidity to a Balancer pool, you will be automatically receiving Balancer Pool Tokens (BPT). While every pool issues BPT tokens with the symbol BPT, each pool has its own unique BPT smart contract that works behind the scenes. The official DEXG/USDC pool smart contract is 0x5b18df96d3c8b9f1d1b9e38752498f92d1e2d490.

The DEXG staking dApp will only accept this unique BPT token for deposit and staking. Please make sure you provide liquidity to the correct contract and only use the official DEXG/USDC Balancer Shared Pool. The amount of BPT tokens received reflects the liquidity providers share in the pool. You can check the total supply of BPT tokens at the smart contract.

For example, if the circulating supply of DEXG/USDC BPT is 1,000 and the BPT you hold is 100, your share of the pool is 10% (100/1,000). The number of BPT doesn’t reflect the number of DEXG provided to the pool 1:1. When more liquidity providers join the pool, your BPT quantity will not change, neither will the provided DEXG/USDC amount, despite your DEXG/USDC share in the total pool decreasing.

Balancer Liquidity Mining Rewards (BAL REWARDS)

The Balancer Liquidity Mining Incentive will distribute BAL tokens weekly on Wednesday to DEXG/USDC LP BPT holders. It’s important to note that the wallet holding the BPT will receive the BAL rewards. Keep in mind though, that once you have deposited your BPT tokens into the staking dApp, the smart contract running the staking round will receive the BAL rewards while your BPT tokens are inside the staking dAPP.

After discussing the matter, the team decided to use the BAL rewards distributed weekly to the staking contract to engage in buybacks of DEXG on the Balancer market. While the amount of BAL distributed to single holders can be of a low quantity, the accumulated BAL rewards being used for buybacks on the market can directly benefit the holders and the project. By using the accumulated BAL for buybacks, we can support the price action on the market, while at the same time support the funding of the project because of its increased market cap.

However, nobody is obliged to keep his BPT tokens longer in the staking dApp than for the staking period. Dedicated DEXG holders can do so though for continuous support of the project.

LUNA: Reward Calculation

Like in the ‘IGNITION’ round, the amount of received DEXG staking rewards depends on the share of the total staking pool. For example, a 1% share of the total staking pool would yield 1% (52.5 DEXG) of the total staking rewards (5,250 DEXG).

My BPT Locked: The amount deposited DEXG/USDC LP BPT tokens locked in the staking dApp.
Total BPT Locked: The amount of all locked DEXG/USDC LP BPT tokens.
MyShares: The percentage share among the staking pool.

Staking Policy

BPT Deposits: DEXG/USDC liquidity providers can deposit BPT tokens from deposit opening to staking end, deposits will not be closed in-between.
BPT Withdrawals: DEXG/USDC liquidity providers can withdraw BPT tokens anytime during the staking round.
Reward Claim: DEXG reward tokens can only be claimed after the LUNA staking round ended.
DEXG Reward Withdrawals: DEXG/USDC liquidity providers can only withdraw DEXG reward tokens after the LUNA staking round ended.
DEXG Reward Amount: The amount of DEXG reward token received depend on the total share of the staking pool and on how long the deposited BPT tokens have been staked in the LUNA round staking period. Reward collection will stop automatically when the BPT tokens are withdrawn during the staking round.

Every staking round has a separated staking smart contract so that stakers have to withdraw BPT tokens from the ended staking round and deposit these BPT tokens to the next rounds staking dApp. However, as mentioned before, stakers can leave their BPT within the current rounds dApp to support the projects buyback incentive. Withdrawing the staked BPT tokens when the next round is announced, is sufficient to participate.

Tip #1: Buy DEXG Economically

To reduce gas fees, you can add only USDC as ‘single asset’ to the DEXG/USDC pool. This way Balancer will use the USDC to buy DEXG tokens at a reasonable price, while in the same transaction providing the DEXG/USDC liquidity to the pool and giving you the BPT tokens needed to stake in the DEXG staking dApp.

Demonstrative example: Assuming the DEXG price is $50, adding 110 USDC as ‘single asset’ to the pool gives 1.9 BPT in return, equivalent to 0.01% share among the pool. Upon removing the liquidity, you can choose ‘multi-asset’ on which you will get 2 DEXG and 10 USDC in return from the pool.

Effectively Balancer will use the 110 USDC provided to the pool as ‘single asset’ to buy DEXG at the best market rate while adding the liquidity in the same transaction. This way, you saved gas fees by eliminating multiple token swap transactions and swap routes.

Tip #2: Increase “Shares” Dynamically

As deposits to the staking dApp are continuously opened during the LUNA staking period, you can add more BPT to your staking shares, as opportunities arise on the market to buy additional DEXG or use acquired USDC to add to the pool directly. Increasing your shares during the staking round will effectively increase the amount of DEXG staking rewards claimable.

Resources

DISCLAIMER:

DEXG tokens are not intended to constitute securities in any jurisdiction. The white paper does not constitute a prospectus or offer document of any sort, and is not intended to constitute an offer of securities or a solicitation for investments in securities in any jurisdiction.

The Flowchain Foundation Limited disclaims any and all responsibility and liability to any person for any loss or damage whatsoever arising directly or indirectly from (1) reliance on any information contained in this white paper, (2) any error, omission or inaccuracy in any such information, or (3) any action resulting therefrom.

The value of DEXG tokens is currently very volatile. Flowchain Foundation (“Company”) does not have any means of stabilizing the token value, please buy at your own risk. Unlike bank accounts or accounts at some other financial institutions, DEXG are uninsured unless you specifically obtain private insurance to insure them. Thus, in the event of loss or loss of utility value, there is no public insurer or private insurance arranged by Company, to offer recourse to you. Because DEXG are based on the Ethereum protocol, any malfunction, breakdown or abandonment of the Ethereum protocol may have a material adverse effect on the platform or DEXG. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the DEXG and the platform, including the utility of the DEXG for obtaining services, by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum protocol.