BSCex Project Review: A Decentralized Exchange Centered Ecosytem

BSCex is a decentralized non-custodial cryptocurrency exchange that aims to facilitate the services that exchange-centered ecosystems provide.

By
Goon Trades
on
December 31, 2020
Category:
Project Insight

BSCex Project Review

BSCex is a decentralized non-custodial cryptocurrency exchange that aims to facilitate the services that exchange-centered ecosystems provide. This project's primary goal is to bring Binance's off-chain services on-chain to the  Binance Smart Chain (BSC). BSCex attempts to achieve this goal by leveraging it's Cross Liquidity Layer 2, integrating its LaunchPadX/LaunchPoolX, and launching its DexX . These features will be explained in-depth as well as outlined in the roadmap.

Currently, BSCex is developing its unique Cross Liquidity Layer 2 protocol, which utilizes multiples AMM's liquidity. Currently, BSCex only aggregates liquidity from PancakeSwap (PCS), but they plan on aggregating from BakerySwap and BurgerSwap and other leading AMM’s.

As of 12/29/2020, the LaunchpoolX is now live, allowing users to provide BSCX / BUSD liquidity. Users who LP these tokens will begin earning liquidity mining rewards in BSCX tokens. As the project develops we can expect to see features such as their LaunchPadX, AMM+, and DexX to be released to users.


Key Features

Live

--LaunchPoolX

--SwapX

Developing

--LaunchPadX

--DexX

--Cross Liquidity Layer 2


Services

LaunchPoolX

The LaunchpoolX serves as the on-chain edition of the Binance Launchpool. Users will be able to provide liquidity provider (LP) tokens for the BSCX/BUSD pair. Currently, can earn BSCX the native governance token. It is essential for users who wish to earn liquidity rewards to understand the one-year time lock on farming rewards, which I explain in-depth in the "Tokenomics" section. BSCX is also incorporated into the Launchpad X, the platform's initial DEX offering (IDO) service, allowing users to earn IDO tokens. This service will be similar to PancakeSwaps CAKE pools, enabling users to earn a plethora of different tokens. The team has also incorporated a deflationary function, burning 20% of the BSCX raised in IDO's. This system drives value to long term holders as the circulating supply is decreasing making the remaing tokens more scarce.

For those who wish to learn all about deflationary token models check out my Cryptonomics article.


LaunchPadX

(Not actual image or actual partners)

Similar to the LaunchpoolX, the LaunchPadX also serves as the on-chain edition of the Binance Launchpad. Projects will leverage this platform to raise funds through an IDO. IDO's hosted on the LaunchpadX will only be accessible to those who provide BSCX/BUSD liquidity and win the LuckyStar ticket, distributed to LP's.

Users who deposit their LP tokens on the LaunchPadX are subject to a one year time lock. Once the time lock is over users will only be able to withdraw 10% each month, meaning it will take users at least 1 year and 10 months to receive back their initial LP tokens. The team has incorporated this time lock in order to protect long term token holders from price dumps. While this seems like an extended period of time users will be able to earn LaunchPadX rewards for the entire time lock period, where users can then re-claim their LP tokens (initial investment) once finished.


SwapX

SwapX is the center element of the BSCex ecosystem. SwapX aims to provide ample liquidity for a plethora of stable coin and cryptocurrency pairs. Currently, users can swap between 15 different crypto assets; the following list outlines a few:

  • BNB
  • BCH
  • BSCX
  • BTCB
  • BUSD
  • DAI
  • ETH

The team at BSCex is rapidly developing its Cross Liquidity Layer 2 to aggregate liquidity from multiple AMM's, providing users with the most optimal swaps. The BSCex Aggregating Engine identifies the best AMM to divide, match, and execute users' orders to achieve this. This system allows users to access a larger portion of the BSC's liquidity, providing more efficient swaps and avoiding unnecessary slippage.

The following example is provided by the BSCex team describing how the Aggregating Engine would divide users orders to obtain the most efficient swap:

For example, BSCex users want to swap 2000 BUSD to BNB. The price slippage of BakerySwap for 2000 BUSD in trading volume is 0.2%. Each $500 in trading volume will cause a 0.05% slippage in price. While PancakeSwap slippage is 0.12% and a $500 in trading volume will cause 0.105% slippage. Our BSCex Aggregating Engine will calculate and divide 2000 BUSD into two smaller orders. One order of 1363.636 BUSD is executed on PancakeSwap and another order of 636.364 BUSD is executed on BakerySwap. The total price impact/slippage is 0.097%, much lower than executing an order on just one single AMM.


DexX

DexX serves as a decentralized crypto exchange built on the BSC. This DEX aims to acquire the best liquidity and facilitate its on-chain order book by leveraging the protocols AMM+ technology.  The team at BSCex seeks to implement a complete user experience, including limit, market, stop limit, and stop market orders to traders.


Tokenomics

The majority of BSCX will be distributed through liquidity farming, 93% of the total supply to be exact. Liquidity mining began on 12/29/2020 with a block reward of 8 BSCX for the first three weeks. This will be reduced to 1 BSCX per block, effective 1/19/2021, reducing the inflation for the remainder of liquidity mining. On top of reducing the block reward, the team at BSCex has also implemented a long time lock into farming rewards. This time lock is in place to combat the aggressive sell-side (inflationary) pressure which governance tokens such as SUSHI, UNI and CAKE have experienced. This time lock is slightly novel, locking users tokens for an initial period and then distributing them throughout the following year, block by block.

The following excerpt outlines the BSCex farming reward distribution and allocation:

80% farmed tokens will be distributed to participants (25% of them will be distributed to participants instantaneously, 75% of them will be locked for 1 year and will be distributed continuously block by block after that 1 year)

20% farmed tokens will be distributed to our platform development fund (25% of them will be distributed to the fund instantaneously, 75% of them will be locked for 1 year and will be distributed continuously block by block after that 1 year)

Overall this system is in place to protect the token price, but users need to understand the extended period that their rewards will be locked for. On top of this, 20% of all farming rewards will be distributed to the platform development fund, under the same time lock.

On top of the farming time lock there will be a 5% burn on every BSCX transaction. Similarly to the IDO's burn, this deflationary mechanic also benefits long term holders, through combating sell-side pressure from farming rewards. The BSCex team has developed a tokenomics structure to counter-act its inflationary liquidity mining program through time locking farming rewards aswell as introducing deflationary mechanics. Currently this burn is not live yet but is being integrated into the contracts.

The team at BSCex also hosted an IDO allowing users to swap USDT for BSCX token on 12/21. This IDO consisted of 2,000,000 (2% of total supply) with a sale price of .05 USDT. It was hosted in a first-come, first serve manner allocating a maximum of 5,000 BSCX (250 USDT) per wallet, and a hard cap of 100,000 USDT worth of tokens. This presale allowed a select few of users to acquire BSCX at a much lower price. A key takeaway here is that there are already some holders who are drastically in profit, this shouldn't be a huge issue as only 2% of the supply was released in this IDO.

RoadMap

1. LaunchPoolX

2. LaunchPadX

3. AMM+

4. DexX

5. Wrapping Digital Assets, Cross-Chain Wrapping.

6. DecentralizedFiat Settlement Layer

7. High-Yield Lending/Borrowing Platform


It seems the BSCex team aims to continue innovating on the BSC, offering users on-chain ecosystem services. The team has many updates in the pipeline, with the LaunchPadX, AMM+, and DexX being the first on deck. The team is diligently working to release these products in the coming year!


Concluding Thoughts

Overall the BSCex team is attempting to cater similar resources to Binance Ecosystem through a decentralized manner. The team aims to innovate, decentralize the process, and access CEX tools such as: IDO's, extensive markets, and a professional UI/UX experience. The team has just launched its LaunchpoolX, allowing users to begin earning BSCX in liquidity mining rewards. The team is currently focusing on launching its Cross Liquidity Layer 2 to aggregate liquidity from multiple exchanges. I will keep an eye on this project's developments as it seems the team is oriented around achieving long term success. In order to ensure this the team has introduced multiple deflationary mechanics aswell as a unique time lock on farming rewards.

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Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.

At the end of the day none of our articles are advice and all financial decisions should be made on your own behalf or from a professional financial advisor.

For more information, or if you wish to stay up to date on the project, check out their media and social media pages.


Website


Telegram


Twitter


Docs


Disclaimer: The team at BSCex has funded the costs of this article.


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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.