INTRODUCING MESX: A New Exchange Token Model Powered by DeFi
The new model combines both exchange token and DeFi token economics bringing increased liquidity which allows for a virtuous circle of revenue, staking and token value.
What is MESX?
MESX is the ETF (Exchange Traded Fund) token of MESE.io. It features DeFi mechanics, and acts as a centralized exchange token with exposure to all of the microequities that are listed on MESE.io.
Is MESX a DeFi token?
MESX is a DeFi token, even though it’s on a centralized platform. MESX can be staked on MESE.io and can earn further rewards. Revenue from MESE.io goes directly towards increasing both the staking pool and the index pool that back MESX.
What Protocol is MESX made on?
MESX is an Algorand Standard Asset (ASA ID 438831) on the Algorand blockchain.
How does MESX work?
MESX is a hybrid model between a DeFi token and a CeFi exchange token. As supply is increased, the ability for you to stake the token and to earn further rewards for holding the token or adding liquidity for the token increases. Meanwhile, 50% of the net revenue from MESE.io goes to continually increasing the underlying value of the pool of MESX. This creates a virtuous circle of revenue, staking and token value.
What is the token model of MESX?
To maintain stability, the 50% net revenue share will continue until a maximum cap of 5 Billion MESX tokens, which represent approximately 11 Million in equity assets. After the maximum supply cap is reached, 5% of Net Revenues of MESE.io will be used to buy stock equity for the index ETF pool indefinitely. MESX will be enabled as a governance token for its index ETF fund after the maximum cap is reached. At which time MESX II will be issued starting with 45% net revenue share and the same DeFi exchange token model. MESX tokens will be released into the market on a daily constant schedule.
How do you buy MESX?
You can buy MESX on MESE.io with ARCC (Asia Reserve Currency Coin) which are paired together. Both ARCC and MESX can be simultaneously staked for even greater rewards.
How does the staking work with MESX and ARCC?
Once you buy ARCC or MESX, a rolling staking function is activated automatically by just holding and/or trading your ARCC or MESX in your account balance. A snapshot will be taken every 48 hours, and depending on your balance at that time, you will receive extra ARCC or extra MESX tokens.
How much are the staking rewards for MESX and ARCC?
The staking rewards will be determined on a day to day basis to optimize the liquidity and trading volume on MESE.io.
Why is ARCC in the index?
ARCC is in the MESE index pool because the pool acts as the ‘buyer of last resort’ for the price point of MESX. If the MESX price is lower than the total equity holdings of the index pool, then we have the option to use ARCC to buy back the MESX tokens from the exchange and include that excess supply into the existing pool. The addition of ARCC acts as an alpha to increase the total equity value of the underlying value, thus adding to the possibility for greater returns and value for MESX.
How is the Index determined?
The composition of the Index is determined by taking a blend of the current microequities listed on MESE.io. This is not done on an equal basis and is done to maximize the value of the index pool within the parameters of the MESE.io listed microequities.
When is the supply of MESX increased?
The supply of MESX is increased every single time we make a new contribution to the underlying index pool. So if the pool is increased by 10,000 US dollars worth of equity, then the supply is increased as well. Also, when the supply is increased a proportion of that will go towards the staking pool as well.
Can I move MESX to my own wallet?
Yes, you can move MESX to your own wallet. It is an Algorand Standard Asset, so as long as you have an Algorand wallet that is enabled for ASA’s, you can move it there. And you can transfer it to your friends or family as well.
What makes MESX a better DeFi model?
As an innovation, MESX brings together three different types of token models into a single model. Both ARCC and MESX are able to be staked, and that liquidity creates more revenue and that revenue goes towards backing and contributing to the underlying value of the MESX index pool. That index pool acts as a token reserve in some respects because it is also a ‘buyer of last resort’. So, you have the best of three worlds (as a reserve token, an exchange token, and a DeFi token) found in MESX and ARCC.
Can you briefly explain the ‘double staking’ model for MESX and ARCC?
The double staking model for ARCC and MESX is a way for us to increase liquidity on both sides of the trading pair. Allowing staking on both sides gives traders the ability to confidently go in and out of both positions. And by increasing liquidity on the trading pair itself, it will translate into increased revenue. That increased revenue then contributes to both ARCC’s reserve, as well as MESX’s index pool. Which in turn increases the supply and the staking rewards as well.
Essentially, we are creating a positive feedback loop whereby increasing the liquidity, increases the revenue, which increases the equity contribution, which increases the value of the token itself. All of which is jump started by the DeFi liquidity mechanism that we find in ‘double staking’.
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