TenX Exchange
Introducing TenX — the first DEX to launch on Tenet network
We are thrilled to announce the initial launch of TenX exchange and our governance token TENX — all launching right now on Tenet network.
Summary
- A community-driven, fair launched initiative — no presales, seed rounds or unfair allocations to early investors or backers.
- TenX Exchange — A Uniswap V2-style DEX with the flair of Sushiswap and powerful revenue accrual mechanisms for TENX token stakers in the IL-free TenXBar.
- TENX Token — a revenue generating governance token governing the TenX ecosystem on Tenet.
- Yield farming on Tenet — stake TENET/TENX and earn extremely lucrative rewards for being an early supporter. Additional pools will be added following Tenet’s integration with Multichain (week commencing 29th May) and LayerZero. The yield farming system incorporates a unique 90% locked / 10% unlocked token supply design to create a sustainable and long-term farming environment.
- Rewards start at roughly ~5PM UTC 29th of June 2023 — farm responsibly!
- Join our Telegram channel to stay up to date to the latest developments
TenX
TenX is a Uniswap V2 and Sushiswap-style DEX mixed with Bao.finance’s token emission model (more details on this later).
Fee sharing is enabled from the very beginning and should provide very attractive rates for early stakers. TENX holders are able to stake their TENX tokens in the TenXBar and earn 1/3rd of all generated trading fees across all pools on the DEX. Compare this to Uniswap and SushiSwap where UNI and SUSHI tokens holders only earn 1/6th of the trading fees.
The TenXBar works with the TenXMaker to routinely market buy TENX tokens using earned LP fees and reward the proceeds to everyone staking in the TenXBar. And not only that — there’s absolutely no risk of impermanent losses staking in the TenXMaker.
The mechanisms outlined above will turn TENX into a revenue generating token and not only a token used for governance.
The TENX token
The core foundation of TenX is the TENX token.
It is aimed to be fairly and widely distributed, with focus on rewarding early and active supporters of the protocol.
TENX will serve as the governance token for TenX.
Total Supply
The TENX token has a total supply of 500,000,000 tokens and features an extensive
lockup model where 90% of earned tokens will be released at a later stage and 10% will be available directly.
This model is intended to disincentivize heavy farming and selling pressure by participants who aren’t committed for the long-term sustainability of the protocol.
The token lockup mechanism is forked from Bao.finance with some slight improvements and modifications.
The TENX token will be configured to lock 90% of all newly minted supply during the yield farming stage until block 6017271 which is scheduled to happen at 17:00:00 UTC December 25th, 2023.
When block 6017271 has been reached the locked supply will slowly start to unlock on a block-per-block basis until block 14801271 which is expected to happen at 17:00:00 UTC December 25th, 2024.
By the end of 2023 roughly 96 million TENX tokens are expected to have been minted. At the end of 2024 the supply is expected to reach 260 million TENX and the final 500 million cap is expected to be reached at the beginning of June 2026. From start to finish it will take roughly 3 years in total to reach total supply.
We’re planning on publishing a detailed token emission schedule in our upcoming Gitbook documentation detailing the emission, detailed figures for locked/unlocked token ratios and much more — so stay tuned!
For comparison’s sake, TENX’s supply will be 0.5x of Uniswap’s and 2x of Sushiswap’s.
Treasury
The lifeblood of a DAO is its treasury and we’ve carefully designed the token emission schedule to reward certain percentages of newly minted tokens to be allocated to three distinctive treasuries:
- The development treasury — 6% of tokens being minted, will be used for developer grants, bounties and funding the technical advancement of the protocol. The development treasury has a 75% locked / 25% unlocked setup.
- The community treasury — 6% of tokens being minted, will be used for marketing initiatives, hiring community managers and fostering the TenX Protocol community. The community treasury has a 85% locked / 15% unlocked setup.
- The liquidity provider treasury — 4% of tokens being minted, will be used to provide liquidity for multiple trading pools on the TenX DEX. The liquidity provider treasury has a 45% locked / 55% unlocked setup.
The DAO will eventually be fully owned by the TenX Protocol community and actively governed to decide on resource allocation. Initially the founding team will allocate the treasury resources but our goal is to get started with the transitioning process as soon as we see that a strong community has been formed.
Besides the treasury allocation there’s also a built in founders reward of 9% — this is to ensure the long-term commitment of the founding team. The founder’s reward is configured using a 90% locked / 10% unlocked setup, just like the regular farming.
In total there will be a 16% treasury allocation and a 9% founder’s allocation, resulting in a total of 25% protocol fees being generated and allocated to the treasuries.
Note that ALL of the fees are also locked using the exact same emission schedule as previously discussed — the treasuries will be locked until block number 6017271 (17:00:00 UTC December 25th, 2023) and it will then take a full year (until block number 14801271 / 17:00:00 UTC December 25th, 2024) to fully unlock them.
Pre-minting
Due to the treasuries following the exact same locked emission schedule as regular
users we’ve decided to pre-mint a total of 10,000,000 TENX, or 2% of the expected final hard cap.
This is done in order to let the founding team and the initial treasury start with developer bounties/grants and community marketing initiatives as soon as the protocol has been launched.
The 10,000,000 TENX tokens will be distributed as follows:
- 3,000,000 TENX: Allocated to the developer fund. Will be used to fund building of additional tools and utilities for TenX users.
- 2,000,000 TENX: Allocated to the liquidity provider (LP) fund. The first action will be to seed initial liquidity for the TENX/TENET pool.
- 3,000,000 TENX: Allocated to the community fund. Will be used for bounties for creating documentation for the protocol as well as community management. We’ll be actively looking for one or several community managers to actively manage the community so that we can focus on building more awesome DeFi products.
- 2,000,000 TENX: Allocated to the founding team.
Besides these 10,000,000 TENX there are no intentions to further mint tokens outside the scope of our yield farming contracts/token emission schedule.
Our deployment setup has been configured to transfer the ownership of the TENX token over to our yield farming/token emission contract as soon as the tokens have been minted. We’ll discuss this in more detail in the “Smart Contracts” section.
Yield Farming
The launch of TenX also introduces the launch of TenX’s yield farming initiative.
The goals of TenX’s yield farming initiative:
- Guarantee a fair distribution
- Guarantee a wide distribution
- Guarantee a sustainable distribution
- Heavily reward early AND long-term supporters of the protocol
Emission rates
The base emission rate of TENX will be 1 TENX per block.
During the initial stages of the liquidity farming we’ll have EXTREMELY lucrative bonuses to reward our early supporters.
Here’s a short breakdown of the first month’s bonus multipliers:
Week 1: 256x multiplier = 256 TENX/block
Week 2: 128x multiplier = 128 TENX/block
Week 3: 64x multiplier = 64 TENX/block
Week 4: 32x multiplier = 32 TENX/block
We will publish the full list of multipliers in our Gitbook documentation — we’ll update this article and link to it here when that has been done.
The reason we can go crazy with these multipliers is because of the 90% locked / 10% unlocked token supply locking system. We truly want to reward our initial supporters massively — while simultaneously making sure we don’t rekt the token while doing so.
Rewards earned via yield farming today will only fully 100% unlock at block number 14801271, about 1 year, 6 months on Christmas Day ~17:00:00 UTC 2024 (based on 3.7 second block times).
Pools
TenX will launch with one pools that will reward yield farmers with TENX: TENX/TENET
TENX/TENET will be our “pool 2” — which will carry the most rewards, but also the highest risk for impermanent losses (IL). The initial farming rewards will most likely offset IL risks, but we recommend farmers to truly educate themselves regarding the various risks involved with yield farming.
Additional pools for different pairs will be added once leading pairs in the Tenet ecosystem have been established and once the bridges from other networks have gone live. If you would like your pair to be incentivised, please reach out to us on telegram.
Deposit and withdrawal fees
To further disincentivize “drive-by” farming & dumping (which seems to be the fate
of so, so many farms) we’ve also added deposit fees and withdrawal fees to the liquidity farming system.
Deposits
Whenever a user deposits a LP token to one of the yield farming pools 0.75% of the deposited amount will be collected as a fee to the treasury.
Withdrawals
For withdrawals we’re using a slightly more complex system:
- 1% fee if a user withdraws in under 5 days.
- 2% fee if a user withdraws in under 3 days.
- 4% fee if a user withdraws in under 24 hours.
- 8% fee if a user withdraws in under 1 hour.
- 25% slashing fee if a user withdraws during the same block (in order to disincentivize the use of flash loans).
There are no flash loan primitives on Tenet right now — but there might be in the future.
These fees will be rewarded to the treasury and it’ll be up to the DAO to decide what to do with them.
The goal with this system is to attract loyal & long-term supporters of the protocol while disincentivizing whales just intending to stop by for a quick little farming session and dump the token into oblivion (we’ve seen this happen to so many farms already…).
The ROI earned from participating in the yield farming pools (especially the first few weeks) will quite easily offset the initial deposit fees.
Additional features
Honest Work has a built in referral system (a positive side-effect forking BaoMasterFarmer) that won’t be enabled straight away when TenX launches.
The referral system doesn’t automatically pay out rewards but will simply track a referral score for each participating user in the protocol.
It will then be up to the DAO to decide if referrers should be rewarded, and in what manner.
If there’s a massive interest from the community to launch the referral system ASAP we’ll reprioritize it and implement the remaining required UI + code integrations that’ll be required.
Liquidity
Given that we’re bootstrapping an entirely new DEX from scratch it might take a while to build up a decent amount of liquidity to provide a seamless trading experience.
The founding team will commit some TENET to the TENET/TENX pool to allow for users to easily swap to TENX in order to enter the TENET/TENX liquidity farm.
The TENET/TENX pool on TenX will initially be seeded with a price of $0.0025 per TENX.
That means that the first week’s market cap (10,000,000 TENX pre-mint + 43,000,000 unlocked TENX rewards) will be roughly ~$37,000.
Smart Contracts
Our smart contracts are based on a mix of contracts from:
Uniswap V2: UniswapV2Factory.sol, UniswapV2Router02.sol and supporting contracts and libraries.
Sushiswap: SushiBar.sol and SushiMaker.sol.
Bao Finance: BaoToken.sol and BaoMasterFarmer.sol.
These contracts have been used by thousands of people and have been thoroughly battle-tested. Some of them have been audited multiple times. But with that said — farming always comes with implied smart contract risk — so farm responsibly!
Uniswap V2
The Uniswap V2 contracts have mostly been left intact — token names/symbols have
been changed, init code hash has been updated and we increased the rewarded LP fees to token stakers from 1/6th to 1/3rd. Besides that nearly everything else has been left intact.
Sushiswap
SushiBar.sol (TenXBar.sol in our implementation) and SushiMaker.sol (TenXMaker.sol in
our implementation) make up the revenue and fee accrual system of the TenX DEX.
Contracts only been modified to change the contract naming and names of tokens.
HonestWork
Based on Bao.finance’s BaoMasterFarmer contract we’ve created the HonestWork. Compared to a typical MasterChef contract, HonestWork is extremely versatile. While a MasterChef contract typically launches with a single bonus period and then moves over to a single block multiplier for the remainder of the protocol’s existence, the HonestWork is highly adjustable and can be configured to support highly customized emission schedules.
Not only that — this schedule can also be changed if the DAO votes to do so. Nearly everything from base emission rates, to multipliers, to block ranges for when multipliers are active, to treasury fees and deposit & withdrawal fees can be configured. Credit should be given where credit is due — this is not something we designed ourselves — the large majority of this is the creation of BaoMan, the mastermind behind Bao Finance. Kudos ser!
Notable differences between HonestWork and Bao Finance’s BaoMasterFarmer and Sushiswap’s MasterChef:
- HonestWork has no migrator — we have no use for it and the migrator has caused so much pain and misery among farming apes that we don’t want anything to do with it. We removed this from the original BaoMasterFarmer contract.
- HonestWork implements some of the suggested fixes recommended by Certik and PeckShield in the original SushiSwap audits. Neither BaoMasterFarmer or MasterChef have these fixes. The fixes mainly pertain to protecting against reentrancy attacks and pool duplication bugs.
- Just like BaoMasterFarmer, HonestWork features an extra Authorizable subsystem that allows an authorized user to reclaim the token ownership back from the BaoMasterFarmer/HonestWork contract.
This is not standard practice compared to e.g. Sushiswap forks which typically transfer the ownership of the token to the MasterChef contract and thus prevents an external party from ever minting tokens ever again. We are not a simple SushiSwap fork. We want to have the opportunity to reclaim the ownership of the token if the DAO choses to integrate the token with other products. We will mitigate this issue by introducing 48 hour timelock contracts for all owners and authorizable access points in the system.
Smart Contract Addresses
Deploying contracts using: 0x1A6C8778aa6FDeA78443A975cA7F6D7Bd32BCCFF
Factory deployed to : 0xbaB158ED71F7FD4AD43b1db1aAc5d0EFA0a8469f
Router V02 deployed to : 0x8aC72Aa18F0a52C64e96c414cEB93ED49b4915F6
TENXToken address: 0x22001C881848B523dbB66Df0832f1835CF2C4298
MasterBreeder address: 0x7Bd4028Ea117955eC92b7d684BB417dA54e4365C
Pit address: 0xD0dB085aEc87c0420f875bBE2637fB209f6cf5c0
PitBreeder address: 0xF6fe31927E39902151063DAf2f68EB3b5097f772
Multicall deployed to : 0x4632a14FFBe8874cD07FE4d3154E3D1b4A0DF3D7
TENX/WTENET pair: 0xc168695cc091b61a55eb01285d5440bb441cdc60
Summary of smart contract risks
Yield farming on TenX isn’t risk-free — there’s always an implicit risk associated with interacting with smart contracts.
While the core DEX codebase has been forked from already established & audited DeFi behemoths such as Uniswap and Sushiswap, there’s always a risk that something can go wrong.
Our governance token & rewards system is a forked (& improved version) of Bao.finance. Bao.finance is in itself initially based on the well-tested Sushiswap MasterChef contract — but has also introduced a lot of additional code to introduce dynamic reward periods, unique token lockup functionality etc etc. Bao.finance had $50m+ TVL in their protocol and haven’t experienced any issues since their launch. With that said — you can never truly know if there’s unknown bugs that can arise.
Some components in the system will also be without timelocks for the first few days. We’re planning on timelocking all critical components in the system as soon possible, but only after seeing that the protocol works as intended.
Our goal is to secure multiple audits for the protocol — but we don’t have any audits scheduled right now, or a definitive deadline for when to secure them. We will be reaching out to auditors to get quotes for how much it would cost to audit the protocol. This is also one of the primary reasons for why the development treasury exists — it’s intended to cover the costs for this endeavour.
TLDR; ape responsibly.
Links
Website: https://tenx.exchange
Telegram: https://t.me/tenxexchange
Twitter: https://twitter.com/tenxexchange
