JEX Litepaper
Disclaimer
The information contained in this document does not claim to be complete.
This document does not provide assurance or warranty on the accuracy of the details or the evolution of the project.
The information in this document must not be considered as financial advice or any sort of advice whatsoever.
Finally, this litepaper may be amended and/or completed from time to time.
Introduction
JEX aims at being a decentralized exchange that allows safe exchange of Elrond ecosystem tokens between users.
The goal is to provide a simple and intuitive platform to create tokens exchange offers by interacting with a smart contract to benefit from the high level of security of Elrond blockchain.
Problem
Today only one decentralized exchange exists on the Elrond blockchain: Maiar Exchange. The swap pairs are limited to a few tokens (MEX, EGLD, wEGLD, USDC, RIDE).
Many new projects and their token appear almost everyday. We think it is important to provide a simple and secure way for users to exchange these tokens from peer to peer.
Security is very important in these exchanges that require a third party to act as a warranty for integrity and to prevent fraud.
JEX exchange claims to be a complement to the Maiar Exchange by proposing peer-to-peer swaps using a smart contract as a trustworthy third party.
Product
JEX is a decentralized application. Its purpose is to provide a marketplace that allows users to create and fill Elrond blockchain tokens exchange offers.
The exchanges are made through a smart contract to ensure the integrity of each swap. No one has access to these funds until completion of the exchange or canceling by the proposer.
The exchange rate is set by the seller when creating an offer. This rate will remain unchanged until the offer is filled or canceled.
The smart contract is compatible with every ESDT (Elrond Standard Digital Token). Meanwhile, to prevent fraud, a list of authorized tokens is established in the User Interface and in the smart contract. Users will be able to use these tokens only.
Of course this list will evolve over time when new projects and new tokens arrive on the blockchain.
To make it easier to understand, here is an illustrated example of a token exchange on JEX:
The goal of the initial product is to fulfill the most basic use case that is the simple exchange of ESDT tokens described above.
New features will appear on the product. The implementation details will be discussed with the community in order to satisfy the users the most.
Although it must not be considered as an engaging roadmap, the following new features should be considered:
- addition of new evolved offer types;
- offers aggregation in an order book;
- compatibility with new types of content to be exchanged;
- integration with new actors of Elrond ecosystem;
- new project launch assistance;
- …
Due to strategic considerations, these features will not be detailed in this document.
Economy
JEX genesis was realized without any external funding because we wish to work on our own and with no external pressure except ours.
Our goal is to deliver as soon as possible a first version of the product that fulfills the most urgent needs of the community.
Only after the launch on Elrond mainnet, a funding phase will be realized in order to establish an initial treasury. This treasury will be used to cover platform hosting bills, to finance external technical experts (graphists, developers) and to remunerate the team.
Also, fees will be deducted from exchanged tokens. Those fees will be placed in a smart contract that will provide transparency for their usage:
- maintain the treasury (30%),
- remunerate JEX token stakers (50%),
- remunerate the team (20%).
Why are the fees placed in a smart contract?
The deducted fees are sent to a smart contract in order to optimize transaction fees when an offer is filled. If fees were sent to all eligible recipients each time an offer is filled, the buyer would have to pay unnecessary high transaction fees.
Furthermore, to ease the calculation of eligibility to fees redistribution, users will have to stake their JEX tokens in the smart contract.
Token
The total supply of $JEX token is 1,000,000,000.
(*) cliff : during this period, tokens are locked and cannot be claimed, staked, exchanged or sold.
(**) the tokens allocated to the team will be locked in a smart contract that will prevent any claim before the end of the lock-up period (6 month after the launch on Elrond mainnet).
The official JEX token identifier on Elrond blockchain is : JEX-9040ca
The details and attributes of the token are available on the official Elrond explorer:
Dynamic distribution
40% of the supply will be distributed through a dynamic distribution process managed by the smart contract each time an offer is paid with wEGLD.
A fraction of these JEX will be sent to the buyer and the seller in equal parts.
The amount of distributed tokens during each exchange will depend on the amount of remaining JEX tokens allocated to this reward program and the amount of exchanged wEGLD :
nb JEX = (nb wEGLD traded) * multiplier
Multiplier can be adjusted for special event.
Burn mechanism
To contribute to the rarefaction of the token, a burn mechanism has been put in place.
At the end of each accumulation period (17 days), part of the $JEX collected in fees will be burned.
Initially, these $JEX should be distributed as follows:
- 50% for stakers
- 30% for the treasury
- 20% for the team
The 30% intended for treasury will be burned.
Roadmap
Team
Gathered around Elrond technology as a common interest, we shared our ideas and our vision to identify the needs of the Elrond community. From there we decided to use our skills and resources to imagine an innovative solution to remedy this problem and fit the needs of users of Elrond blockchain.
Javier: Senior “full-stack” developer
Julien: Community Manager, social media Twitter / Medium
Pierre: Design & graphics, calculations, simulations and projections
