DXBL & Proof of Trade Litepaper
No governance. No pre-mine. No airdrop. $DXBL is a pure utility and rebate token.
Last updated
No governance. No pre-mine. No airdrop. $DXBL is a pure utility and rebate token.
Last updated
Welcome to the Proof of Trade Protocol, invented by the Dexible team to tie the trading activity to community rewards. Proof of Trade links protocol volume to a Community Vault, a rebate pool only $DXBL token holders can access. The Proof of Trade protocol is designed to provide utility to traders, incentivize participation, reward long-term holders, and ultimately create a token backed by trading volume. The more volume through the protocol, the higher the token's value. The $DXBL token will have a different native token per network. Each $DXBL token is a separate reflection of the volumes on that network, meaning the value of $DXBL is network dependent and not pegged to one another. For example:
$DXBL-ETH: Dexible on Ethereum
$DXBL-ARB: Dexible on Arbitrum
$DXBL-AVA: Dexible on Avalanche
$DXBL-BNB: Dexible on BNB Chain
$DXBL-OPT: Dexible on Optimism
$DXBL-POL: Dexible on Polygon
When users trade on the Dexible platform, they will earn, or more appropriately, "mint," $DXBL tokens through the Proof of Trade framework.
For each whole number of $DXBL tokens in the trader's wallet, a .05% discount will be applied to the Dexible fee until a 50% discount has been applied, down to a minimum of 4 bps (0.04%).
Fees collected by the Dexible protocol will be split between the Dexible Treasury for further development of the protocol and the Community Vault, from which traders can burn their $DXBL for any of the Vault assets. The vault is composed of multiple assets, as determined by the traders.
The Dexible team determined the accepted vault assets to deposit. These will include the wrapped native chain fee tokens (aka $WETH, $WMATIC, $WBNB, etc.) and well-adopted stablecoins ($USDC, $DAI, $USDT). However, the amount of vault assets at any point that can be redeemed through burning $DXBL is dependent on the trader's preferences.
As trading occurs on the Dexible platform, the Community Vault accrues more value. Depending on the discounts applied to each particular trade, the value in the Community Vault will grow at a rate of between 2-4bps per transaction.
Example: If $1,000,000 were traded on Optimism, another $200 (1/4 of 8bps) to $400 (1/2 of 8bps) will be added in that token to the appropriate pool in the Community Vault.
By burning the minted $DXBL tokens, $DXBL token holders can receive a portion of the Community Vault pool in Wrapped Natives or Stables, depending on their preference.
As volumes in the protocol increase, minting difficulty also increases, tightening the supply of tokens. As tokens are minted and vault pool token balances accrue in the Community Vault, the Net Asset Value (NAV) of each token will increase as the minting difficulty increases.
Minting Difficulty is a rate defined by the Protocol's Minting Difficulty curve.
To get a more detailed understanding of how this works, please read the Technical Paper.
