Etherex's Decentralized Exchange Crosses $120M TVL as Tokenomics Boost Trading Valuation to $155M

Decentralized Exchange Etherex Reaches $120 Million Total-Value Locked

Decentralized exchange, Etherex, has achieved a significant milestone, crossing the $120 million total value locked (TVL) mark after launching its REX token on August 6, 2021. The REX token, which was released merely five days ago, is currently trading at a $155 million fully diluted valuation.

The Impact of Token Release on Etherex

The release of the REX token was instrumental in sending Etherex’s total-value locked (TVL) up due to its unique characteristic known as x(3,3) tokenomics. This allowed Etherex’s TVL to experience a dramatic increase of 435% to $123 million from just $23 million at launch.

x(3,3) Tokenomics and The Role of xREX Staking Mechanism

The rise in Etherex TVL is largely attributed to its incentivized xREX staking mechanism which offers an impressive 84.35% Annual Percentage Rate (APR). Users who wish to instantly exit with their xREX stake and earnings, however, incur a 50% penalty with the other half redistributed to remaining stakers.

Terms of the Token Launch

The release of REX on Etherex transpired less than two weeks after Linea, another blockchain platform, publicized various crucial announcements. These included a generous 75% token allocation towards ecosystem development and a 10% user airdrop.

Understanding the (3,3) Mechanism

In the context of game theory, the (3,3) mechanism is a strategic scenario where participants seek ways to cooperate in order to maximize the financial benefits for all parties involved. This kind of mechanism had become increasingly prominent in the crypto space, particularly due to the influence of Olympus DAO.

Olympus DAO’s Experience with (3,3) Mechanism

Although the (3,3) mechanism was a preeminent feature in Olympus DAO’s operations, the OHM token, unfortunately, did not perform well. Owing to this crisis, the OHM token’s market cap decreased by a staggering 91% from its highest peak of $4.2 billion. Notwithstanding, Olympus DAO has amended its protocol and is currently trading at a $370 million market capitalization.

Trial of (3,3) Mechanism Through Social-fi dApp’s Friend Tech

Crypto enthusiasts tested the (3,3) game mechanisms again during Friend Tech’s ascend to prominence, another decentralized application for social finance. Users purportedly bought additional user keys under the assurance of reciprocation, but neither party would end up selling the other’s keys—ensuring maximum points for each user.

Consequences of the (3,3) Experiment

This experiment resulted in smaller Friend Tech users often purchasing their own keys, adopting the (3,3) mechanism with other “farmers” who would then inflate the original key price. Consequently, they would sell all their shares, leaving their counterparts in a disadvantaged position.

Friend Tech’s FRIEND Token’s Journey

Friend Tech’s FRIEND token followed a path similar to Olympus DAO’s OHM. After an eventful launch that saw 100% of the token emitted on its opening day, FRIEND’s value plunged from its opening price of $3 to an astonishing $0.1 in just two short months. Currently, FRIEND trades at a meager $4 million valuation, marking a shocking 99% downfall from its initial $233 million opening price.