This article is written in partnership with CoinEx(read more)
- CoinEx Smart Chain (CSC), a new playground for DeFi?
- The CoinEx Smart Chain Seed Fund
- The roles of CET, the native token of the CSC
- Our opinion on CoinEx Smart Chain
CoinEx Smart Chain, a new playground for DeFi?
Created by the CoinEx platform teams, the CoinEx Smart Chain is a public blockchain compatible with the Ethereum Virtual Machine (EVM). This blockchain provides an on-chain playground for developers to create decentralized applications and issue tokens, under the CRC-20 standard.
Fully compatible with the Ethereum ecosystem, it is possible to migrate applications from this blockchain to the CoinEx Smart Chain with relative ease, to take advantage of its scalability and low transaction fees, around $0.005 at the time of writing. The CoinEx Smart Chain works with the proof-of-stake mechanism .
As such, the CSC supports up to 101 validator nodes, which are selected based on the number of CET tokens they lock onto the network. This CET token is the native token of the CoinEx Smart Chain that powers the entire infrastructure.
The average time to generate a block on the CoinEx Smart Chain is 3 seconds. Every 200 blocks, a mechanism automatically seeks to build the next group of validators, checking the number of CET tokens they have locked into the protocol.
Supported by the well-known MetaMask wallet, the CoinEx Smart Chain also has its own dedicated wallet, the ViaWallet. Very new, this blockchain only hosts a few applications so far, the most notable being OneSwap, a multi-chain automated market maker with an order book and other interesting features for liquidity providers.
Blockchain still very young, how do CoinEx teams plan to attract developers to CoinEx Smart Chain?
The CoinEx Smart Chain Seed Fund
Thus, CoinEx will subsidize developers who will contribute to the strengthening of the CoinEx Smart Chain infrastructure, depending on the situation of each project:
- HelloAllocation of $1,000 to $10,000: new projects by new developers;
- 10,000-$50,000 allocation: developers with some experience in creating dApps;
- Allocation of $50,000 to $100,000: developers with a strong track record in creating dApps.
In addition, CoinEx will eventually select cutting-edge projects from those that have already received financial support from CoinEx and provide them with appropriate promotional means, the terms are as follows:
- For decentralized finance protocols, CoinEx will provide liquidity and media support to the platforms;
- For services such as wallets or development tools, CoinEx will offer product visibility on its various networks.
For the most successful projects, CoinEx will go even further and offer a priority listing of a potential CRC-20 token on its cryptocurrency exchange platform. Funds from ViaBTC Capital could also be sought to support these same applications.
With CoinEx Smart Chain still in its infancy, there are plenty of opportunities for developers. Multiple protocols already on Ethereum or other blockchains can be replicated on the CSC and those who do so will be directly rewarded. This model is now paramount to bring a blockchain to the forefront and ensure that it can step into the spotlight.
If you’re interested and want to give it a shot, here’s the Google Form to answer
The roles of CET, the native token of the CSC
The CoinEx Smart Chain is powered by its own token, the CET, or CoinEx Token. Initially based on Ethereum and issued under the ERC-20 standard, the CET is now fully issued from the CoinEx Smart Chain, and has been since the deployment of the chain’s mainnet.
CET on CSC is operated in the same way as ETH on Ethereum, and its main functions are as follows:
- Validators on the network receive a CET reward for each block;
- CET is used to pay gas fees for transactions, and also for smart contract calls ;
- This CoinEx token is also needed to deploy smart contracts on the CSC;
- CET token holders can delegate their assets to validators, and generate interest passively.
In addition to its involvement in the CoinEx Smart Chain, CET also powers the CoinEx platform; holding CET and using CoinEx allows for lower transaction fees and access to various products in the ecosystem.
In addition, CET has a built-in deflationary mechanism, allowing the number of tokens in circulation to be reduced over time. In effect, CoinEx buys back CET tokens from the markets with 50% of its profits coming from transaction fees. Then, every quarter, the platform burns through all the tokens accumulated in this way.
To go further, find <a href=”https://cryptoast.co.uk/coinex-cet-tuto-opinion/”>our opinion and tutorial on the CoinEx platform
Our opinion on CoinEx Smart Chain
From a technical point of view, the CoinEx Smart Chain is similar to the blockchains of some of CoinEx’s competitors. This new ecosystem is yet to be built and CoinEx is graciously subsidizing developers who would like to contribute to it.
At the time of writing, OneSwap is one of the only applications built on top of the CoinEx Smart Chain, but the subsidy program should certainly help other applications come on board.
Now essential to ensure its success and retention of future users, CoinEx has developed the ViaWallet to manage all CSC tokens. The latter is relatively easy to use, and is an important ally of the CSC.
As the entire ecosystem is powered by the CET token, the CET token plays an important role in ensuring the smooth running of this infrastructure. As more decentralized applications join the CoinEx Smart Chain, the CET token should benefit and will certainly gain in use cases.
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About the author : Clement Wardzala
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Editor of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I strive to share qualitative content so that the sector is democratized to all.
All articles by Clement Wardzala.