SmartDex, the Dex that encourages you to save instead of spending

A few days ago I wrote an introduction post about the launch of SmartDex, the new Dex on the smartBCH network with a unique reward model. In that article, I wrote about how the Dex works based on the information available at the time of launch, however, there were some uncleared areas that were not mentioned in the article which led to several questions and doubt about the legitimacy of the new Dex. At the time of publishing the article, the Dex dev was still working on implementing some features on the Dex based on community recommendations.

One of the issues that were not cleared was the deposit fee which was not clearly stated on the site for anyone to see before deciding to make a deposit if they are comfortable with them. Upon launching the Dex, a 0.75 deposit fee was implemented across all farming pools on the Dex. This fee was heavenly talked against by several potential investors on the Dex which lead to a review of the fee and complete removal. Right now, there is no more deposit fee applied on any of the farming pools. This means a user can make a deposit of investment without paying a fee.

However, the withdrawal fees still applied which is basically nothing anyone should worry about except those who may want to exit within the first five days of their investments. The dynamic fee system applicable on SmartDex is simple to understand by anyone.

1% fee if a user withdraws under 5 days.

2% fee if a user withdraws under 3 days.

4% fee if a user withdraws under 24 hours.

8% fee if a user withdraws under 1 hour.

I guess no serious investor would want to pull out from a system that so early, and SmartDex is six days old with a total value lock of $1,172,269.8. This shows that serious investors are having trust in the new Dex.

The withdrawal fees are used to incentivize holders of Dex native token dSMART, a kind of airdrop that will be awarded periodically to holders and also to the Dex treasury which will at a later date be put up to a vote amongst the community members to invest with!

For those who want to invest but fear the risk of impermanent loss, there is a single pool you can deposit your dSMART tokens in to earn 1/3 of all generated trading fees across all the pools on the Dex. The smartstake idea is to allow small and medium investors in the Dex native token.

There are two different tokens on SmartDex, dSMART, and xSMART. dSMART is the token used for every activity within SmartDex ecosystem while xSMART is the reward token. Any deposit of dSMART made into the smartstake pool is automatically converted to xSMART which a user can see and its value against dSMART is also shown at the top on the smatrtstake box.

Now let's deal with the farming yield reward system and see how SmartDex encourages savings instead of spending.

SmartDex implement a unique yield farming reward system of 95% locked / 5% unlocked to create a sustainable investment and long-farming environment to prevent token dump. How this works is simple, 95% of the total yield reward a user earned is locked up for the user and is to be made available at a later date. The remaining 5% is released immediately to the user's wallet.

There is a little technical aspect of this reward system. The 95% locked up and the 5% released are done automatically. Any time a user claims the reward 95% of the user reward goes into the locked savings for that user while 5% is released to the user. A user can claim the accumulated reward at any time.

However, a user who wants to unlock the locked 95% can do so any time but can only get 0.55% of the today locked reward daily. The locking period for the 95% is 6 months which will slowly payout within a year on a block-to-block basis.

This system is typically a crypto bank and good for long-term investment. If there is still any aspect about SmartDex you don't understand you can ask directly in the telegram group. You can also visit the website to have a tour of the features.

Disclaimer: This is not financial advice, always do your own research before investing in any online business. And as always, invest what you can afford to lose.