ChainX Exchange
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ChainX Exchange

Elastic Rebase Exchange (ERX) IEO on ChainX

About Elastic Rebase Exchange (Website : erx.finance)

INTRODUCTION

When Bitcoin was born, the technology pioneered the democratisation of finance through the decentralisation of money. It brought us the ability to be our own bank, to decide how our money is moved and allowed us to conduct fund transfers at 4.30 in the morning without having to leave our homes or sign any pesky paperwork at a financial institution.

Though it was a breakthrough in financial technology, or Fintech as it’s now called, Bitcoin also brought with it the inherent flaws that cash as a financial instrument exhibits. Although not backed by a national reserve, the incredible volatility of supply and demand which was further upset by miners churning out new coins with every block made the playing field too unstable for anything other than trading on the order book — that was until new blockchains emerged to present buyers with more flexibility than just simple buying and selling.

DEFI-ING GRAVITY

The most popular blockchain after Bitcoin is arguably Ethereum, given that it is the cryptocurrency with the second highest market capitalisation after Bitcoin[1]. Since its genesis in July 2015 — Ethereum’s vision to be a “World Computer” exposed its technology to millions looking to take advantage of such incredible financial infrastructure that was now at the hands of everyone.

As Ethereum developed further, the creation of Digital Autonomous Organisations or DAOs made it possible to build trustless, decentralised systems on the blockchain that were capable of disbursing and handling financial instruments. Decentralised Finance, or better known as DeFi, soon took off with more advanced DAOs using smart contracts coded into the blockchain to manage financial instruments more autonomously than ever before.

Following the success of the Binance, the company behind the exchange made a groundbreaking move to operate both a centralised and decentralised exchange by establishing their own token (BNB) and more recently, their own Ethereum Virtual Machine (EVM)-compatible smart blockchain which provided them the platform to establish a decentralised exchange alongside their centralised one. Recently during The World of DeFi Summit, Binance announced a 100 million USD seed fund[2] to build Binance projects on the Binance Smart Chain (BSC) with a focus on bridging Centralised Finance (CeFi) and DeFi ecosystems through new projects on their blockchain.

ALL YOUR REBASE ARE BELONG TO US

Once a day, the on-chain smart contract that controls ERX conducts a rebase operation on the supply of the token and adjusts it automatically based on market conditions so that a higher demand would mean a higher supply and a lower demand would result in a lower supply.

How is this different from burning and minting, you might ask?

The supply of blockchain tokens, just like ERX are controlled by programs called smart contracts. These contracts also control how much ERX each individual holder has in their wallet. In the case of ERX, your token balance will change in response to demand after every rebase operation. Such operations can be triggered when an oracle connected to the smart contract detects a significant shift in the demand for the asset.

ERX’s rebase calculations (only positive rebases on ERX) are based on the technology pioneered by Ampleforth — a group spearheading a dynamic ERC-20 token on the Ethereum blockchain.

Ampleforth’s vision to become a better Bitcoin for the future of decentralised finance could even hold the key to a better, more widespread adoption of cryptocurrency. A system like ERX that can adapt its own supply in response to demand would act as a cushion to sudden drastic changes in demand will not just spur a new force in DeFi but also unlock new opportunities on the blockchain. In an ever-growing world of DeFi where long term holding or HODLing is slowly losing popularity as profit-seeking parties move quickly onto more profitable assets for faster returns, ERX is designed to cut through flash crashes, pump-and-dumps and speculative trading to present a solution to diversify risk for those who want to participate in the long-term.

ELASTIC CITY

In economics, supply and demand is only half the game. The other, is the elasticity of said supply and demand.

As with anything that has a fixed supply, its supply curve would also be inelastic, meaning that changes in demand will greatly affect the price. As mentioned before, traditional methods of deliberately burning or minting tokens to respond to this often comes with the flaw of being controlled by human sentiment and at the end of the day, impacts the token holders more often than anyone else.

Softening the impact that the demand has on the price of the ERX token by dynamically regulating supply can make it respond more elastically and in turn, be the counterforce needed to create a truly stable coin.

‘NOT YOUR REBASE, NOT YOUR $ERX’

You can participate IEO and check more details from this website (https://chainx.kr/)

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ChainX is one of the biggest crypto exchange based in Korea and growing fast. Now Korean top 3 exchange in Coinmarketcap. It offers buyers to get the right of entry KRW fiat/cryptos pairs, charging 0 deposit costs.

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