As the decentralized finance (DeFi) sector evolved, more and more new exchange protocols began to appear that provided advanced tools for trading on the DeFi market. One such protocol was DeXe, which allowed users to follow traders' trades automatically.
What is DeXe?
DeXe is a decentralized social trading platform based on the Ethereum blockchain that integrates multiple trading protocols into a single ecosystem.
The DeXe platform has been in development since 2019, with a full-fledged launch only in the first quarter of 2020 and minimal basic functionality.
How does the DeXe platform work?
DeXe is a protocol focused on social trading that benefits both experienced and professional traders and newbies. Beginners can copy trades of more experienced traders, earning income if they are positive. Professional traders can receive commissions for successful trades from beginners who follow their strategies.
Trading operations are carried out via the DeXe Follow smart contract, and it works like this: when an experienced trader connects, a token is issued, the value of which is linked to his portfolio. If the trader makes successful trades and the value of his portfolio grows, the price of the synthetic token will increase proportionally to the amount of income.
The DeXe trading platform operates through a decentralized autonomous organization, DeXe DAO, which works based on the Ethereum blockchain as DeFi protocol and has its own set of smart contracts.
Users wishing to join a particular strategy can follow either a single trader or multiple traders using the protocol's built-in Wallet-to-Wallet (W2W) Copying feature.
In addition to social trading (or, in other words, copy-trading), the DeXe platform provides users with a wide range of trading tools, including:
automatic portfolio rebalancing;
token listing tools;
trading strategy training.
DeXe ecosystem
The DeXe ecosystem consists of 3 main components:
DeXe Association,
DeXe Protocol,
DeXe DAO.
DeXe Association is a non-profit organization that develops and promotes the DeXe platform decentralized, i.e., through the community. The main goal of the DeXe Association is to support another ecosystem organization, DeXe DAO.
DeXe Protocol is an innovative infrastructure for developing and managing decentralized autonomous organizations (DAOs). Based on it, the project team has developed DAO Studio, an application for creating community-driven DAO protocols in the DeXe ecosystem.
DeXe DAO is a decentralized autonomous organization in which DEXE token holders can vote for and propose improvements to the DeXe platform. The main objective of the DeXe DAO is to provide and improve a transparent and efficient governance model for the DeXe Protocol.
DeXe token
In September 2020, the platform team issued its own DEXE token on the Ethereum blockchain, initially in accordance with the ERC-20 standard. DeXe developers later added support for the BNB Smart Chain network, and DEXE tokens became available in BEP-20 format.
The DEXE token is endowed with various utilities and allows holders to participate in project management through voting and making suggestions for improving the DeXe platform. In addition to being able to participate in voting, DEXE token holders receive various incentives to encourage them to continue holding the asset. The strength of each participant's vote will depend on the number of DEXE tokens: the more there are, the stronger the weight of the vote.
Other uses for the DEXE token include:
DEXE token arbitrage: users can profit from price differences in different trading pairs;
staking and deposits: users can stake DEXE token and receive additional rewards.
The maximum number of tokens (issuance) is limited to 98,942,301 DEXE tokens. As of July 2024, only 57.7% of DEXE tokens are circulating on the market, i.e., about 57.1 million.
Does DeXe have a future?
In March 2024, the team presented an updated roadmap for the project. According to it, the developers plan to improve the protocol's security measures by granting validator status to Swiss Association members, activating real-time SPHEREx protection, and adding several security features to the smart contract via on-chain voting.
In addition, plans are to improve the DAO's Treasury management mechanism (DAO's Treasury) by fixing the rules in the smart contract. After that, the DeXe DAO community will still be able to manage the protocol by voting, but autonomously, through a modified smart contract. Other updates regarding protocol management and the DEXE token holder reward system are also planned.
