Bottom line up front: xETH is an underrated elastic supply token that cut out the possibility of negative rebases. If you bought 1 ETH worth at the beginning, you would have over 15 ETH now, and if you bought in at ANY time since launch and held through a few days of rebases, you would be in profits.
To me, the recent invention of elastic supply tokens has been the most exiting thing that's happened in crypto since the 2017 bull run. I'm an old crypto nerd who's been in the space since 2011, so that's really saying something! For those unaware, elastic supply means that as people buy up the price of the token, more tokens get printed by the contract and distributed to holders until the price goes back down to where it's pegged (which in most cases is $1 but is 1/100 ETH for xETH).
There is no better feeling than buying tokens once and watching the contract print you money every day, putting more new tokens in your wallet for free! I've enjoyed massive gains from several elastic supply projects, but the first ones had glaring drawbacks. Positive rebases are awesome while the project is growing, but any price corrections can turn into a death spiral, even leading to negative rebases if the price dips below where it's pegged. It's bad enough to loose value when the price of the token you're holding goes down, but having tokens taken away from your wallet on top of the price crashing is enough to make any investor feel sick! I think elastic supply technology is brilliant, and I'm very happy to see the xETH team bringing the tokenomics to the next level.
xETH fixes drawbacks with elastic supply tokens
1) No negative rebases! - If the price ever dips below where it's pegged (and it hasn't yet for xETH), then all the community has to do is just keep promoting and wait till marketing catches up, sparking a new positive rebase cycle. The only risk is if the project stops growing entirely, and never grows again (unlikely).
2) Daily rebases come at random times - What I have noticed about xETH price action is only a small dip in price after a rebase, (most likely from holders taking profits). Also, I have yet to see a day where the price doesn't immediately pump back up to the trend line within 45 minutes. This is a much better experience for me than the ridiculous price manipulation by bots in other projects that have their rebases at the exact same time every day.
3) Rebases do not affect tokens on Uniswap - In other projects, the liquidity pools containing elastic supply tokens rebase, creating violent adjustments in the price each day. The xETH Uniswap liquidity pair only changes price when people buy or sell.
4) A tax is charged when xETH is sold - This tax feature evens out the risk of large sell-offs and creates a pool of money that helps create sustainable growth for the project. Some of the ways this money can be used are buy-and-burns as well as creating a pool of money to reward stakers (staking coming soon). The exact amount of sell tax varies (currently 7.69%), but every time I have seen it changed was due to a community vote.
Here is how much the rebase percentage has been each day:
2020-09-13 - 30%
2020-09-14 - 42%
2020-09-15 - 4.6%
2020-09-16 - 2.6%
2020-09-17 - 4.3%
2020-09-18 - 6.1%
2020-09-19 - 3.1%
2020-09-20 - 3.9%
2020-09-21 - 2.9%
2020-09-22 - 4.2%
2020-09-23 - 8.4%
2020-09-24 - 11.2%
2020-09-25 - 11.7%
2020-09-26 - 8.8%
2020-09-27 - 8.4%
2020-09-28 - 10.4%
2020-09-29 - 9.56%
2020-09-30 - 8.16%
2020-10-01 - 9.98%
2020-10-02 - 16%
2020-10-03 - 25.71%
2020-10-04 - 29.99%
2020-10-05 - 13.57%
2020-10-06 - 9.43%
2020-10-07 - 11.33%
Now in case you aren't aware of how compound interest works, THIS IS MASSIVE ROI! To put this in perspective, if you bought $1000 worth of xETH and got an average of 3% rebase each day, you would become a millionaire in less than 8 months if you bought and sold at the same price! Now of course nothing is guaranteed in crypto, but it's also true that you could have invested at any time and just held through a couple rebases to be in profits no matter what day you entered. The opportunity in making exponential gains in xETH is HUGE!
xETH is still early...savvy investors will notice:
1) Only 1000 wallet holders and 1500 telegram users
2) Marketing has not kicked off yet (team says they are in talks with some large YouTubers)
3) Staking has not started yet, which will undoubtedly increase demand
4) xETH has had positive rebases every day since inception, indicating that demand is high and that the project is still growing
The xETH team acts professionally:
1) Admins listen to the community, often polling the telegram group before making big decisions
2) The main team members Jonas, Sarah, and Chris are extremely active
3) Updates are rolled out regularly
4) The team is burning 70% of their supply in the team wallet. This is a huge indication that they are in this for the long haul!
DeFi has taken me on a crazy ride these last few months and it has been exiting to do the research and find hidden gems. I think a lot of people overlooked this one because it isn't immediately apparent just how high the APY from rebases actually is. xETH has been awesome, and I believe there is still plenty of runway to catch this plane before it takes off. Happy HODLing!
Website: https://www.xeth.finance/
Rebase dashboard (community made): https://xeth-rebase-dashboard.herokuapp.com/
Telegram: https://t.me/xplosive_ethereum