Metanyx: The Multi-chain Project Integrating Interchain DeFi into ICON
Toward the end of 2020, amidst the wave of new projects and P-Reps that began to emerge offering reward tokens to their voters, Metanyx officially announced that they too would be serving as a P-Rep on the ICON network and would be sharing a portion of their rewards with their voters.
However, their involvement in the ICON ecosystem dates back long before then, all the way back to September 2019.
At first glance, their reward model may come off as just another “give back” reward model. But when you look under the hood, Metanyx is leveraging their existing relationships and technical capabilities to help grow the ICON ecosystem in a meaningful way.
This article will look at Metanyx, the METX tokenomics, and how the team is working to integrate interchain DeFi into the ICON network.
According to their website, Metanyx is “an industry leading Staking Service Platform based in the United Kingdom.”
Here’s a lengthier description:
Metanyx is a leading UK Block Producer that is innovating Blockchain technology. We believe in connecting users and devices across Blockchain networks. We are an active voice in the ecosystem on real evidenced based usage and adoption. Metanyx are a trusted validator in a number of Proof of Stake networks.
Metanyx believes Blockchain technology can be applied to many markets such as Financial Services, Internet of Things, Governments, Digital Identity, Voting, Land Registries and Power grids.
Simply put, Metanyx’s core (but not only) speciality is the technical ability to run stable, functional nodes as validators on multiple blockchain networks.
Thus far, they’ve operated nodes on IOST and IoTeX, and have become deeply involved with these blockchains, including building a number of tools and resources on both.
Their third chain is ICON. “Metanyx believes ICON has the core fundamentals to replace traditional financial systems,” the team told me. “Block speed of 2 seconds with 4 second finality, low cost gas fees and a unique Python based VM layer make ICON a pleasure to use and to develop on. ICON 2.0 offers a more robust base layer using Golang which has many advantages over the current Python implementation that will allow for shared components to be utilized with other networks.”
Already, they’ve sunk their teeth deep into ICON, “as one of best performers during testnet we helped out on the technical side of things. When we joined ICON we immediately dug deep into the platform architecture and have become one of the most knowledgeable teams within network today. We have helped other teams with debugging issues related to Nginx and helped out with foundation with all original configurations.”
Beyond that, however, has been their development of ICONPay, which has been integrated into WooCommerce and allows online stores to accept ICX as payment:
ICONPay for WooCommerce allows users to pay and merchants to accept ICX CryptoCurrency on their online store. Over 3 million onlines are powered by WooCommerce and growing everyday.
They’re also working on integrating ICONPay into Shopify as well as Point of Sale (UK). While COVID-19 delayed the launch of this integration, the team remains hard at work on building.
What’s even more cool is they are building a feature to allow METX payment on ICONPay as well, meaning your METX rewards could potentially be used to buy goods and services throughout the web.
The METX Token
ICONists who stake and vote for the Metanyx P-Rep receive rewards in the form of “METX”, the Metanyx token.
According to their tokenomics breakdown, “the value of METX will be backed by 50% of the P-Rep rewards we receive. The higher the vote percentage Metanyx receives the more METX will be worth. Metanyx wish to create a sustainable token model with sound tokenomics that are inline with our core principals. The original design of METX was created in early 2019 and has successful at maintaining and gaining value.”
Based on the design of the tokenomics, “the initial value will be set at 0.00025 ICX per METX, the value is relatively low by design to ensure sustainable growth.”
However, as the Metanyx P-Rep acquires more votes (and thus more funding), the value of METX is expected to rise.
As of today’s writing, METX is currently trading for $0.00202 on uTrade.
Technically speaking, METX is a disinflationary token, meaning the rate of inflation decreases over time (similar to Bitcoin), and it eventually maxes out at a total supply of 1 billion METX.
Each year, the total amount minted decreases by 10%:
Partnership with RAMP DeFi
What’s most exciting about Metanyx is their partnership with RAMP DeFi, and their work to integrate RAMP DEFI into ICON. What is RAMP DeFi? Here’s a description:
RAMP DEFI is a global decentralized finance solution that focuses on unlocking liquid capital from staked digital assets. Using the RAMP solution, users with staked assets can continue to receive staking rewards, retain capital appreciation potential on their staked portfolio, and unlock liquid capital to invest in new opportunities at the same time.
Here’s the problem RAMP is attempting to solve: let’s pretend you have a substantial portion of your crypto portfolio tied up in ICX. You’ve staked your ICX in order to receive the rewards, but by doing that, you’ve obviously diminished your ability to use that capital for other purposes. What if you wanted to try out some of the DeFi products on Ethereum? Well, you’d have to not only unstake your ICX, but you’d have to trade it for ETH as well.
With RAMP DeFi, that’s no longer the case. Let’s take a look at an example of how this works:
Pretend I have 10,000 ICX. I don’t want to sell it, but I do want to utilize it on the Ethereum network.
Let’s assume (for simplicity purposes) ICX is trading at $1 at this point in time.
Based on the 500% collateral requirements of RAMP, you could deposit your 10,000 ICX into RAMP’s platform and mint 2,000 rUSD, an ERC-20 token that can be utilized on the Ethereum network.
Meanwhile, once your ICX is deposited into RAMP DEFI’s platform, RAMP will delegate your ICX to the Metanyx P-Rep. RAMP will then take the staking rewards they receive for voting and staking and pass them back to you, but will charge a 30% fee before doing so in exchange for their services (however, RAMP will be offering a fee replacement in the form of the RAMP token during the early phase of the project to offset this fee).
Meanwhile, as you still receive a portion of your rewards, you’ll also now have $2,000 rUSD that you can utilize on the Ethereum network. This means you can use it to provide liquidity or lend on a number of DeFi products, or you could trade it for USDT, USDC, or another stablecoin and provide liquidity or lend with one of those tokens. Or, of course, you could do anything else with it on the Ethereum network.
Not only are you now earning most of your rewards from your ICX (which you’ve been staking already), but you can now earn even additional yield via a number of Ethereum DeFi products.
Meanwhile, you’ll also earn additional rewards in the form of the METX token (as RAMP will be staking with Metanyx and passing along the rewards), as well as RAMP, the native token of RAMP DEFI.
So, to summarize the process:
Step 1 — Users deposit yield-bearing assets (in this case, ICX) into RAMP smart contracts, which redeploys these assets into staking on behalf of users.
Step 2 — Users mint rUSD stablecoin on Ethereum against these delegated yield-bearing assets as collateral.
Step 3 — rUSD minted can be deployed into DeFi protocols to stack multiple yield streams, generating higher income yields for users.
Step 4 — Users can exchange their rUSD into USDT or USDC via liquidity pools, giving them access to fiat-backed stablecoins.
Step 5 — Users continue to receive the majority of their staking rewards, and still retain ownership of the underlying yield-bearing asset portfolio.
To get a better understanding of all the various features RAMP DEFI has to offer, or to learn more about how they work, be sure to visit their Medium page.
By now the advantages of RAMP DEFI for ICONists should hopefully be clear — it’s ultimately a huge benefit to be able to utilize staked tokens for other purposes while still retaining a sizeable proportion of your staking rewards.
While the Metanyx team clearly benefits from this partnership (since they’ll be receiving the vote delegation from RAMP DEFI’s ICX holdings), they’re also the ones who will be building out the RAMP DEFI integration, completing the partnership arrangement. It’s estimated that this integration should be completed sometime during Q2 of 2021.
And it sounds like Metanyx has even more development up their sleeve — although they won’t disclose what that is just yet. Either way, between the benefit their token provides, as well as the work they’re doing to support the network, it looks like Metanyx has been a big asset for ICON thus far — and will continue to be so in the future.