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Hackernoon logo[Announcement] Mega Rewards on Digitex Program Coming Soon With Uniswap by@digitex-futures

[Announcement] Mega Rewards on Digitex Program Coming Soon With Uniswap

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@digitex-futuresDigitex Futures

Zero-Fee BTC Futures Exchange

DeFi has dominated the topic of conversation in the cryptocurrency space in 2020 with few signs of slowing down. Among its many innovations, the trend of liquidity mining has without doubt caused the largest stir and allowed investors to make massive gains reminiscent of the ICO days.

But investors must assume a high risk for high reward and, in some cases, many have made staggering losses through scam projects, technical glitches, and unscrupulous project founders. Investing in DeFi, just like every area of investment, needs to be done with due diligence to ensure a quality project that will stay the distance rather than bootstrap liquidity from an existing protocol, hoodwink investors, and disappear pretty much overnight.

Announcing DGTX Rewards Program on Uniswap

Enter Digitex. As a high-quality project that has built up a large and active community of traders, investors, and speculators, the Digitex Futures zero-fee exchange has been live on the mainnet since July 2020, building up popularity, liquidity, and userbase over this time. But as an innovative company that wants to offer its community access to the DeFi yield farming phenomenon while opening up its exchange to a broader user base, Digitex has decided to launch the DGTX Rewards Program in mid-November.

This will be done through Uniswap, the world’s largest decentralized cryptocurrency exchange. On Uniswap, users provide liquidity through a process called pooling in which they deposit (lock-in) cryptocurrencies in the liquidity pool to earn a share of the fees paid out in trading. Unlike on other DEXs that often suffer from a lack of liquidity, on Uniswap, pools are created using 50% ETH and 50% of the selected token to ensure liquidity is maintained.

According to Digitex, allowing holders to pool ETH and DGTX will greatly incentivize on-chain liquidity of the DGTX token. Users receive DGTX tokens for providing liquidity on the DGTX/ETH market on Uniswap. The more liquidity they provide, and the longer they provide it, the greater share of the DGTX Rewards pool they receive.

How the Rewards Program Works

As described in a Digitex blog post, the rewards program is designed to add liquidity into Uniswap, but then the DGTX rewards are collected by visiting the Digitex website. DGTX holders will, therefore, need to start by visiting Uniswap and creating a new “pool token” by locking away an equal amount of DGTX and ETH to create a new token called the ‘Digiteth’ token. This will allow them to then earn rewards from Digitex through its own DGTX Rewards Program coming soon via DigitexCity.com.

Token holders simply need to deposit their pool tokens into their staking rewards wallet on DigitexCity.com and collect their rewards when they withdraw their funds. 

5 Million DGTX Rewards in First Month Kick-Off

To mark the new initiative (which will coincide with the first unveiling of the DigitexCity.com domain) Digitex is allocating a massive 5 million DGTX for the first-month campaign and, rather than having to keep their tokens staked for long periods of time, investors will receive daily payouts in proportion to the number of pool tokens they have staked, upon withdrawal of their funds. 

Breaking that down, this means that the generous rewards program will be paying out some 166,666 DGTX tokens every day divided among pool token holders. 

The development of the DGTX Rewards Program is already underway and expected to launch throughout the second half of November. So, why is Digitex willing to pay such high rewards to participants in its program? According to CEO Adam Todd, it’s because they “see the value in terms of the liquidity” that the exchange will build on Uniswap. 

“This means that we can greatly increase the demand for the program, and the userbase for our exchange. The demand for the DGTX token will also go up and supply will constrict, which is a win-win situation for all.”

The Pivot to Digitex City

The original purpose of the DGTX token was for traders to be able to trade with zero commission fees in the Digitex Futures exchange. However, since the public launch, it became apparent that DGTX volatility on the exchange was a barrier for some traders, particularly those wanting to trade with larger amounts.

Therefore, the company has since announced the launch of a new stablecoin, the DUSD token, to take over as the native currency of the exchange--as well as a pivot to Digitex City in December 2020. Digitex City is a massively ambitious undertaking that will offer futures, spot, and forex markets from one unique login with the company’s signature zero-fee and no house edge theme built-in. 

According to the whitepaper, there will also be additional features such as an integrated social platform and entertainment in the form of gambling and gaming applications. Described as “crypto’s playground,” users will come to Digitex City to trade, play, and connect without having any volatility risk by utilizing the new DUSD stablecoin. DUSD will be pegged at $1 and is created from locking away DGTX as collateral, at a ratio of 5:1. Digitex City is set to open its doors on December 15, 2020.

Wrapping It Up

This is certainly not the first time that the young company has surprised the crypto community with its ongoing innovation and refusal to rest on its laurels. Digitex City, meant to be a one-stop-shop for all things crypto and a place where people come to make money, connect, and play has the potential to draw large crowds. 

It will be interesting to see how the community and DeFi enthusiasts at large react to the DGTX rewards program. However, this timely rewards program with Uniswap, currently the world’s largest DEX, certainly has the potential to bring new eyes to Digitex City and zero-fee offerings, thus helping it achieve network effect faster.

If you want to take part in this program or simply want to stock up on DGTX while it's at a knock-down price, be sure to visit the Digitex Treasury for an instant trustless transaction with zero slippage.

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