Thread by @the_economystic

1/ Elrond Network has rebranded to MultiversX & introduced a suite of 10 next-gen, industry-standardizing apps to revolutionize & establish a growth trajectory for the #web3 industry at-large.

Let's talk #DeFi, MultiversX and the all-new xExchange + $MEX token. ⚡ @ElrondNetwork

2/ We are all here because of one person: Satoshi Nakamoto.

Before we labeled DeFi as DeFi we had #bitcoin: A purely peer-to-peer version of electronic cash that allows online payments to be sent directly from one party to another without going through a financial institution.

3/ Bitcoin being the purest form of decentralized finance, it's vital that any extension/adaption adheres to those principles: on-chain, immutable, decentralized.

My mission is sharing solutions to problems: $EGLD is the multi-sharded Layer-1 solution ready to onboard Billions.

4/ The latest iteration of #DeFi relies on generating yield (earning interest) by performing proper actions on what are called "Decentralized Exchanges" - "DEX" for short.

A DEX is a place to buy & trade crypto tokens. The funds are owned by you and me. Not managed by a CEO.

5/ Funds, or liquidity, are provided by regular users like you and me and anyone with access to the internet can trade crypto tokens - trustless - just as Satoshi originally intended.

The team that built Elrond Network $EGLD built Maiar Exchange and it's now called xExchange.

6/ The top feature of the original Maiar Exchange included ease of access and use:

• Log in with a single QR code, confirm identity via biometrics and confirm transactions seamlessly on @getMaiar. 📲
• Install the DeFi Chrome extension to seamlessly log-in and verify txs.

7/ A big selling point of Maiar DEX was the reward for performing "proper actions" I mentioned above, like providing liquidity.

People must provide their own crypto funds for the DEX to function! This carries risk, so "yield farming" in #DeFi implies earning from providing.

8/ I've just described the biggest barrier to overcome in #DeFi: How do you provide dependable value to liquidity providers over the long term?

Team MultiversX faced this problem with the value-capture/reward mechanism for Maiar DEX: the Maiar Exchange token, $MEX.

9/ The team first had to attract liquidity to the EGLD/MEX pool on Maiar DEX so that there was monetary value rewarded to liquidity providers on the DEX.

The intention was to align providers with the long-term view of the DEX by rewarding them with the token they're supporting.

10/ It quickly became clear that outside users were abusing this rewards system and using these early liquidity providers as exit liquidity.

Team MultiversX brought a swift end to these malicious actions, but the problem found new ways to manifest.

11/ Part of the value-accrual of the original $MEX token was that for each trade on the DEX, a % of that trade was burned - or subtracted from the floating supply.

Third-party platforms started popping up that moved trades out of the DEX & allowed users to sell "locked" $MEX.

12/ Locked MEX - or $LKMEX - was the initial solution MultiversX thought they had for aligning the value capture & growth trajectory of Mair DEX: "If you elect to yield farm Locked $MEX, we'll give you a more favorable APR... BUT the $MEX you earn will be locked for one year."

13/ This incentive for liquidity providers to lock their $MEX rewards for a higher APR did slightly improve the promise of $MEX's future price, but $LKMEX was now being sold off of Maiar Exchange.

Aligning users with the long-term view of the DEX has had a leaky tire.

14/ Now entering the new realm and a redesigned $MEX token, aimed to solidify the growth trajectory and value capture mechanism of Maiar DEX's native token: $MEX

Welcome to xExchange. 🔥

⚡ $LKMEX Holder Benefits
⚡ $MEX Utility
⚡ Capped Supply
⚡ 65% emission reduction
+more

15/ xExchange incentivizes users to hold $LKMEX. Locked MEX will now be viewed like a rechargeable battery:

• "Size" of battery = how much $LKMEX you own.
• "Charge" of battery = # of days your $LKMEX is locked.

Together, the size & charge equates % Energy. ⚡

16/ All farming rewards will now be paid in $LKMEX with max energy. Energy is calculated by the day, so max energy is 4 × 360 = 1440 energy.

With the implementation of energy, any/all $LKMEX can be traded for $EGLD by removing energy, or "speeding the discharging".

17/ Larger batteries & stronger charges earn a higher tier of benefits (tbd). Just holding $LKMEX will automatically earn passive income from 3 sources:

• Metabonding
• $MEX emissions
• Fees Pool

Energy also equates higher tiers of APRs

• Yield Farming
• Metastaking

18/ The Fees Pool is a new feature aimed to reward $LKMEX holders and is funded by two streams:

• When users "speed the discharging" of $LKMEX: 50% of the fee is burned and 50% rewarded to $LKMEX holders.
• 0.05% of every trade on xExchange is added to the Fees Pool

19/ Three streams users will earn passive income just by holding $LKMEX

• Fees Pool
• Metabonding
• $LKMEX emissions

And there are 3 additional benefits:

• Boosted farms
• Boosted Metastake
• Governance

Holding $LKMEX is the start; adding energy multiplies your status.

20/ $LKMEX has found a much more suitable status within xExchange and compels liquidity providers to align to the long-term view and success of xExchange. If a user is short-term and wants to exit, first they must pay a toll that rewards $LKMEX holders via the Fees Pool.

21/ The new economics model will also bind $LKMEX to the account that initially farmed it: third-party exchanges are out of business. This is great news as any/all trades surrounding $LKMEX will inherently add value back to the DEX and reward $LKMEX holders. (see exceptions)

22/ 100% discharged $LKMEX becomes $MEX - a payment and access token on xExchange.

• Fully transferable, any address
• Buyable via on-ramp
• Useable for payments on xPortal (prev. @getMaiar), xSpotlight & xMoney
• Used to top-up debit card
• Is entry point to $LKMEX utility

23/ Emissions = how much new token is created from farming rewards. With xExchange we now have emissions laid out: once xExchange goes live the $MEX emissions will drop from ~1M per block to 350k per block. This immediate reduction by -65% planned to fall to zero by year 8:

24/ Lower emissions helps token value by capping total supply; token burning adds value to token holders by subtracting from supply. $MEX is burned by

• Every trade on xExchange 0.05% burned
• Energy removal fees 50% burned
• Removing funds from farms within 72hrs 100% burned

25/ Important dates approaching! Iit's important for everyone to understand the economical changes: github.com/ElrondNetwork/…

Ask questions & open discussions! Please #retweet to share the info! Check out @egld_initiative to learn more about #MultiversX ⚔️

https://twitter.com/beniaminmincu/status/1593275652127576064?s=20&t=i59o-w_Mf1PQQTsLV9jzFw