WXG tokens delisting procedure

In this article, we would like to briefly explain the current situation with the gateways and the process of auditing WXG tokens.

Since the beginning of this year, WX Network’s existing gateways have been facing the issue of insufficient liquidity for withdrawals to other networks. Therefore, a decision was made to activate a new service for transfers to/from the Waves network. The PepeTeam has developed a decentralized bridge that facilitates fast and transparent transactions between different blockchain networks. WX Network has implemented PepeTeam bridges, which now enable users to deposit and withdraw assets to Ethereum and BNB Chain. Gradually, other networks will be added. New bridges facilitate the creation of new wrapped tokens in the Waves network, which will be gradually verified and added to WX Network. As a result, WX Network gateway tokens and Pepe gateway tokens need to be separated. For that, we have decided to rename existing gateway tokens to WXG tokens. Weekly, we update several tokens’ names, informing our users about it.

Currently, to neutralize the issue of insufficient liquidity for withdrawal of tokens to other networks, the following plan is in place:

1. Each WXG token has to go through an audit to determine the size of liquidity for it.

2. After the audit, the WX Network team informs users about its results, the size of imbalance or full collateralization.

3. In case of insufficient liquidity, the process of buying back the token for WAVES is initiated.

4. Funds for the buyback come from trading fees on a daily basis, and the bought back tokens are burnt.

5. If a token is fully collateralized, it is bought back for a token issued by the PepeTeam bridge in the Waves network.

6. Once the imbalance has been fixed for a WXG token, the corresponding token is delisted from the exchange.

Currently, the WBTC-WXG has successfully gone through this procedure. On the exchange, an order has been placed, under which WBTC-WXG tokens are bought for WBTC-ERC20-PPT at a rate 1:1. By the end of next week, the token will be delisted. The same applies to the BUSD-WXG token: an order for its buyout has been placed, and tokens are gradually bought out from the market and burned.

It should also be noted that, although the audit of the BTC-WXG, USDT-WXG and USDC-WXG tokens is still in progress and will likely take more time than other tokens’ audits, it’s already possible to sell these tokens for WAVES.

We plan to audit all existing gateway tokens on WX Network. This takes substantial time, and we count on your understanding and hope that soon, we’ll be able to completely switch to using only Pepe bridges.

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