Breaking New Ground for Long-Term Investors with IntentX
Vertex drastically changed its tokenomics just 3 days before the launch of LBA.
This negatively impacted investors who planned to invest in their token for the long term, and I was one of them.
The worst thing for a long-term investor is uncertainty. 👇
Such an investor can cope with high volatility and even temporary exchange closures.
However, uncertainty in management is something long-term investors cannot tolerate.
How can you invest in a project, in people who change the rules of the game just a few days before launch, and fail to mention several key elements?
What stops them from changing something else in a month?
This is either an attempt to deceive and profit from investors' money or poor planning of fundamental principles.
Regardless, this is a red flag for me, and I'm passing on Vertex.
But it seems I've found a worthy replacement.
On November 15, the beta of the IntentX project was launched.
It's also a perpetual DEX, and it seems they are popping up in droves, indistinguishable from one another.
However, I discovered that IntentX is significantly different from the well-known top DEXs, both technically and economically.
I won't burden you with technical details, it's a complex and unique technical project.
The main feature here is that the project does not use liquidity providers.
Instead, it uses liquidity on other platforms to execute trades.
So, how can you make money from traders?
More on that below.
I was attracted by the project's focus on long-term investors, and there's a lot to see here.
So, the project has an INTX token, which after staking turns into xINTX.
Staking Utility includes:
- 100% of revenue distributed to xINTX stakers.
- Governance voting rights.
- Long-term increasing share of protocol through the exit fee mechanism.
- Staking benefits for traders
These are fairly standard features, but there are several strong points that favor long-term investors.
Loyalty Staking Dynamic Fee and Boost
The longer tokens are staked into xINTX, the more users receive a boost to their revenue over time.
There's also a dynamic exit fee structure to increase value for all long-term aligned stakers.
The Loyalty Stake Duration is 16 weeks. If you stake for this long, you can avoid all but the standard redemption fee.
The Maximum Boost means that if you stake your tokens for the full loyalty duration, the rewards can be multiplied by up to 2.5 times, increasing linearly over the maturity of your staked position.
The Early Unstaking Penalty starts as high as 25% and decreases linearly over time, with a flat redemption fee of a minimum 0.5% for all staked positions at max maturity (16 weeks).
Dynamic Pool Ratio
The early unstaking penalty and flat redemption fee contribute to increasing the dynamic pool ratio, thus proportionally increasing the value of all remaining xINTX stakers' positions.
The ratio at which you can exchange xINTX for INTX evolves based on penalties incurred by early unstakers, effectively increasing the amount of INTX backing each xINTX.
The more penalties incurred by early unstakers, the better the INTX to xINTX ratio becomes for loyal stakers.
The pool ratio is altered only by redeeming, not depositing.
In simple terms:
-> Traders gamble and earn xINTX as a reward based on total trade volume and PnL performance
-> They either immediately unstake xINTX and sell, incurring a penalty fee that goes to xINTX stakers, or they stake the token, thereby reducing the penalty fee, and then either sell or keep the tokens staked to start earning.
-> Stakers own xINTX tokens, which constantly increase in value.
The scheme is quite unique for perpetual DEXs, and the idea has the potential to succeed.
We see the project's care for long-term investors.
Personally, I plan to accumulate tokens through the Trade & Earn program currently running on their site, which has allocated 2,000,000 INTX via retroactive airdrop.
Since I'm not much of a trader, I will further buy additional positions after the TGE.
If you are interested in the project, you can use my referral link and you'll receive a 15% bonus in xINTX rewards based on your qualified trading volume.
IntentX Links: