EpoxyDAO (EPX) is a decentralized finance platform built on Ethereum blockchain that lets anyone issues eUSD (Epoxy USD) by collateralizing other stablecoins and earn EPX token. EpoxyDAO is an open-source project and a Decentralized Autonomous Organization.
What is EpoxyDAO (EPX)?
EpoxyDAO is a cross-chain Decentralized Finance Platform (DeFi) that merges all the existing stablecoins and issues a standard stablecoin PEX and its variant eUSD. It is completely decentralized and managed by the community through Epoxy Governance powered by the governance token EPX. EpoxyDAO is a partial open source project and a Decentralized Autonomous Organization (DAO).
Details of the Project EpoxyDAO:
A DECENTRALIZED BANK
EpoxyDAO functions like a bank where you can deposit your various currencies to get one standard currency. The key difference here is, unlike other traditional banking systems, EpoxyDAO is completely decentralized and managed by people around the world who have the governance token EPX. Right now there are a lot of stablecoins and new ones are being introduced frequently. Most of the time users get confused while selecting a stablecoin. In practical life, we never need hundreds of variants of the same thing, we prefer only one standard version. So EpoxyDAO aims to merge all the variants of USD pegged stablecoins and have one standard version.
A DECENTRALIZED CENTRAL BANK
EpoxyDAO has been designed in a way that it can be used as a central bank. Traditional banks from the real world can actually use EpoxyDAO and do the interbank transactions and other transactions more efficiently. Banks can issue their own fiat backed ERC20 collateralization tokens and issue PEX and eUSD as standard or common currency.
PEX is more efficient as a reserve currency and eUSD is more efficient as a transaction currency. Collateralization token providers can be seen as the backers of PEX and eUSD. EpoxyDAO rewards EPX tokens for issuing PEX.
Epoxy Protocol is a DApp (Decentralized Application) on the Ethereum blockchain. It is managed by the people who have the governance token EPX. EPX holders can arrange voting to bring changes to the protocol.
EpoxyWallet is the easiest way to access the Epoxy ecosystem. It’s a user-friendly light client where users can easily access all the functions of EpoxyDAO. EpoxyWallet is integrated with two blockchains, Ethereum and Epoxychain.
EPOXY STABLECHAIN (EPOXYCHAIN)
Epoxychain is a separate blockchain that handles eUSD issuance, burning and transactions. The sole purpose of creating Epoxychain is to have a dedicated blockchain only for stablecoin transactions. It ensures efficiency, high speed, nearly 0 transaction fee and very high TPS (transaction per second) limit. Along with this, it is completely decentralized, borderless and trustless peer-to-peer (P2P) payment network. Epoxychain has the ability to beat Paypal, VISA and any other payment processors. It has been designed for 7.8 billion people around the world.
eUSD is a cryptocurrency with a standalone blockchain (Epoxychain) and not a token. It is the main stablecoin of EpoxyDAO platform and is backed by ERC20 PEX at 1:1 ratio. eUSD can be seen as Electronic USD which represents a digital version of US Dollar. eUSD doesn’t have a fixed supply and its supply depends on the amount of PEX locked in the TokenLocker contract. eUSD is issued when someone locks PEX in the TokenLocker and initiates a PoL transaction; and it is burned when someone initiates a PoB transaction and unlocks PEX. eUSD completely depends on the performance and value of PEX. If PEX is considered as a parent currency then eUSD is a child currency. eUSD is the best choice for everyday transactions and institutional transactions. It can be used to transact fraction of a cent to billion dollars for nearly 0 fee.
PEX is considered as the intermediate currency between Epoxy Protocol and Epoxychain. It is an ERC20 token on the Ethereum blockchain. PEX is backed by the existing stablecoins and meant to be pegged to 1 USD but its performance may depend on the performance of collateralized stablecoins. Anyone can generate PEX through eTreasury by locking their stablecoins. Once generated, PEX can be used as regular stablecoin or to issue eUSD. PEX is decentralized, unbiased and resistant to devaluation. The sole purpose of PEX is backing eUSD by merging all the ERC20 stablecoins. PEX can’t be issued by governance, team or any factor other than locking stablecoins.
eTreasury is a DApp that handles the PEX issuance and EPX staking. It accepts the supported stablecoins as collateral, locks them for specific periods and generates PEX at exactly 1:1 ratio regardless of market price. To retrieve the collateral which was locked, users need to simply return PEX to the eTreasury once the locking period ends. When collateral is unlocked, those PEX will be burned automatically. Whether a coin is disabled or out of tolerance limit, only depositing and issuance of new PEX is unavailable, but anyone can get back his stablecoin by returning PEX.
75,000,000 EPX is set to be distributed through minting. Once 75,000,000 EPX limit is reached, no more EPX can be minted. EPX can be minted in two ways:
1. Issuing PEX: Allocation is 50,000,000 EPX
2. Staking EPX: Allocation is 25,000,000 EPX
REWARDS FOR ISSUING PEX
To issue PEX, users need to simply deposit and lock supported stablecoins in the eTreasury. There are two options for it, flexible lock and time lock.
1. Flexible lock: Collaterals can be locked and unlocked anytime and there is no reward.
2. Time lock: If the collaterals are locked for minimum 3 years, users instantly get EPX reward. Collaterals can be unlocked only after 3 years from the locking time.
Time lock reward mechanism has been set to attract people to issue more and more PEX. This reward is a one-time reward.
The base reward for time lock is 0.005 EPX per 1 unit of a supported stablecoin. The base reward halves after every 5,000,000 EPX is rewarded.
DarkLoop algorithm has been designed to enable issuing infinite amounts of PEX with only X amount of a stablecoin.
Suppose you have X amount of stablecoin Z. Initially you can issue X amount of PEX with X amount of stablecoin Z. Then you can exchange/swap X amount of PEX from any exchange or market and get X amount of stablecoin Z again. Then you can repeat the process.
➦ Step – 1: Issue X amount of PEX by locking X amount of stablecoin Z.
➦ Step – 2: Exchange or swap PEX from any exchange or market and get X amount of stablecoin Z again.
➦ Step – 3: Go back to step 1.
Everytime you issue PEX, you get EPX as a reward. To run this loop, you will need to pay a transaction fee or GAS fee whenever you issue PEX but it can be covered from your EPX rewards. Additionally you can sell those EPX rewards and get more stablecoin Z for locking.
This loop works best when you have a large amount of stablecoins. Suppose you have 500,000 units of USDT. If you run this loop 50 times, you will issue 25,000,000 PEX and get 50 times more rewards.
Points to be noted, those PEX aren’t being issued from thin air. When you sell 500,000 PEX to get 500,000 USDT and deposit 500,000 USDT again to issue another 500,000 EPX, you’re actually locking someone else’s 500,000 USDT and taking his reward. If you run the loop 50 times, 25,000,000 USDT will be locked as well.
DarkLoop actually locks stablecoins and issues PEX forcefully. Anyone can run this loop for infinite times and lock 100% of a certain stablecoin while not owning 100% supply of that stablecoin.
EPX can be staked in the eTreasury to get additional EPX as reward. To start staking, users need to simply lock their EPX for a specific time period. The reward amount depends on the total amount deposited and the timelock period.
The base reward is 0.10 EPX per 1 locked EPX for minimum 1 month. The base reward halves after every 5,000,000 EPX is rewarded. There are also additional bonuses for locking EPX for the long term. Bonus % is calculated from the main reward amount
There is a voting contract which lets EPX holders lock their EPX tokens to make votes. One EPX locked in the contract equals one vote. Epoxy Governance allows EPX holders to-
➦ List new stablecoins: New stablecoins can be listed in eTreasury if there is enough vote.
➦ Disable/Enable certain stablecoin: If the community sees a certain stablecoin as unfit for the ecosystem, they can vote to prevent eTreasury from issuing further PEX for that certain stablecoin. They can enable that certain stablecoin again by voting.
➦ Adjust tolerance limit: Tolerance limit is very important to prevent devaluation of EPX/eUSD. If a certain stablecoin falls below the threshold limit, it is automatically disabled by the protocol. The threshold value is set by EPX holders through voting.
EPOXY LENDING POOL
In future, the EpoxyDAO team will be developing a lending pool where lenders can deposit PEX in the Epoxy Lending Pool and earn interest from borrowers. Borrowers can use their EPX and other assets as collateral to get a loan from the pool for a % of interest which will be decided by the governance system.
EPX is the governance token of Epoxy Protocol. It plays the key role in the Epoxy ecosystem by controlling the Epoxy Protocol and balancing the value of stablecoins. EPX has a total supply of 100,000,000. EPX is used to make votes in Epoxy Governance. If an institution or a bank wants to introduce their stablecoin or collateralization token to EpoxyDAO, they will have to either convince the community to approve it or buy most of the EPX tokens to win the vote. EPX is a standard ERC20 token.
EPX Contract Address: 0x5729b237d016ec3c24e5c926d9884d8a77bc3781
Max Supply: 100,000,000 EPX
Development Budget: 14,000,000 EPX (14%)
Allocated for Bounty: 1,000,000 EPX (1% & includes bug bounty)
Allocated for Founders: 10,000,000 EPX (10% & locked for ~2 years)
Allocated for Minting: 75,000,000 EPX (75%)
We have created a temporary token EPI for EpoxyDAO ICO as a precautionary measure after scam event on Uniswap on 5th Oct 2020. A group of scammers created fake contract for EpoxyDAO and conducted sale on Uniswap using our project name and scammed users by selling fake EPX tokens worth of 600+ ETH.
EPI was created for those who are really interested to make investments on EpoxyDAO directly without waiting for IEO rounds on exchanges. EPI token will be only used for EpoxyDAO ICO.
This will also help us to keep records of funds raised on ICO and IEO sales separately.
Later, EPI will be available to swap with EPX once EPX is listed in exchanges for trade.
EPI Contract Address: 0xc49ff2a17579e750133e2f723d1336fd354f48dd
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