The Current State of Crypto Asset Decentralized Exchanges (DEX) and New Information on BCO Staking of Crypto Bridge
It is no longer uncommon to encounter hacking incidents with cryptocurrency exchanges, but there are also many people in the country that feel it is safer to keep virtual currency on a DEX (decentralized exchange) at one point.
Recent Trend Summary of DEX
Each DEX seems to be functional including their operations even though the temporary enthusiasm boom of cryptocurrency from 2017 has now settled down during 2018. However, due to problems with liquidity, fees have to be raised, and as in the case of the EtherDelta, the position where we think and operate from a legal point of view may be more difficult than before. Hmm.
Nevertheless, decentralized exchanges are also somewhat flexible as temporary cryptocurrency storage locations, and it is likely that DEX exchanges, which are readily available, will still be used and adopted. Similar to Waves, recently there was also news such as the addition of pairs on Binance. In addition, there is also a case where the staking of BCO, which is a part the main story of this article, works in favor of old participants and it is considered necessary to follow information as a single genre called a DEX.
DEX Trends in 2019
From here, I would like to easily compare recent information on DEXs, which will be highly known and used in Japan in a comparative manner.
Speaking of EtherDelta, it may be quite a famous DEX, but as the transaction form itself is a form in which a crypto central body exists, meaning that it is operating as an unregistered national stock exchange by the SEC since around November 2018. The president has been fined (approximately 45 million Yen) for being charged with running an unregistered operation.
A comprehensive platform that includes a decentralized exchange that also issues Waves. The ability to issue your own token on Waves, and the ability to support the Euro and Dollar is rare for a DEX. As of January 18, 2019, four Waves pairs have been added at the leading global exchange, Binance.
Crypto Bridge is also a reminder to both of them because the account and password on the BitShares exchange can be the same on the DEX’s system. It seems that there are recent indiscriminate attacks taking place on these two exchanges. There is an indiscriminate attack in which “Proposal to change account privileges” is sent indiscriminately to hijack an account that has been incorrectly approved. Although the number of occurrences may not be often, be careful not to approve any proposal that is unfamiliar.
News that Crypto Bridge will Increase Fees
One such DEX is DEX exchange “Crypto Bridge,” but new information about the staking of BCO (platform’s own coin and “bridge coin”) that can be conducted at this exchange was announced the other day. I will introduce its changes.
On February 14th, in the Crypto Bridge newsletter, there was a notice that fees would be raised significantly. Because Crypto Bridge is based on BitShares, transaction fees are paid in BTS, but there is a statement that the fees with BTS will increase by 4.36 times for all transactions. It seems to be a substantial increase in fee prices.
Change staking period of Crypto Bridge and revision of fees
First of all, the staking mechanism on Crypto Bridge is like PoS, where rewards are distributed according to how much and often a user stakes BCO, which is its own coin on Crypto Bridge. The staking period was revised at the end of last year, and can be deposited for a longer period from the maximum of one year of deposit under the old incentive system.
Change to staking new incentives for Crypto Bridge
Let’s look at the new incentive system.
【Crypt Bridge New Incentives】
1 month: + 0%
3 months: + 20%
6 months: + 50%
12 months (~ 1 year): + 100%
【Periods from here onwards are newly established】
12 months (~ 1 year and 3 months): + 125%
12 months (~ 1 year 6 months): + 150%
12 months (~ 1 year 9 months): + 175%
12 months (~ 2 years): + 200%
12 months (~ 2 years and 3 months): + 225%
12 months (~ 2 years and 6 months): + 250%
12 months (~ 2 years and 9 months): + 275%
12 months (~ 3 years): + 300%
In the case of 12-month staking, the first year is fixed, and refundable after 1 year.
Since it has been changed to a system in which the incentive goes up after a one year period since last year, it is desirable to leave it as it is if there is no need for cancellation. Let’s make sure that we never get cancelled out without knowing it.
Come to think of it, there seems to be pros and cons about this change.
For example, although the detailed calculation process will be omitted, the change to the new incentive will be advantageous to those who are in it for the long term. As for people who intend to enter the market from now on, it seems that discussions have occurred because the old system has been changed to have better treatment. Gathering such information is essential as these changes may occur in the future.