REX has arrived and will bring benefits to all EOS users
After almost 9 months of awaiting, EOS Block Producers have finally implemented the REX (Resources Exchange) and users can now stake their EOS, vote and get rewards from the REX pool. The excitement of the EOS community has no limits.
Daniel Larimer came up with the first version of the proposal for resource renting and resources distribution in August 2018. The idea behind it was not only to give the users a passive income from their EOS tokens by renting, but also a solution for separating speculation price from resource price. REX is an elegant solution not only for EOS holders but also for EOS DApps as they gain easy access to EOS resources.
Heavy network users like traders, game players or social media users will benefit greatly from REX as lending resources from REX will significantly lower the cost of network usage giving them constant availability of the resources and no exposure to EOS price volatility.
Many EOS holders don’t use their tokens but now they will be able to get a passive income from holding their tokens. Leasing out EOS doesn’t bring any risk for the owner as they can never lose tokens only earn more, also the token remains in their control for the whole period of lending. On the other hand, developers have the possibility to lease CPU and NET resources for a low price without any limitation on the quantity which depends solely on the offer and demand of the tokens and with the possibility to set an automatic monthly lease renewal for the same payment amount.
A return on leasing out EOS tokens depends on the quantity of fees that are added to the eosio.rex account. They will come from account name bids, ram fees and payments to lease the tokens, but at this time the pool is empty and P2P renting without funds distribution will apply.
When lending out to REX, the users are required to vote for at least 21 Block Producers or to delegate their voting power to one of the proxies. The voting requirement doesn’t apply to those who lease tokens. It is expected that this system will engage users into voting for BPs and for referendum proposals.
Using REX comes with some liquidity limitation which is normally disregarded by many hodlers. They usually hold their tokens for long periods of time without ever touching them. With REX they have the possibility to get the rewards without any risk of losing the capital.
“There is a 4 day maturity period. When you convert your EOS tokens to REX, the system enforces a 4 day wait period before you are able to convert them back into EOS tokens. After this 4 day wait period, your tokens can be converted instantly to EOS tokens. There is a potential 30 day wait in case of a liquidity crunch” write EOS Authority on their website.
How REX works
EOS holder lends her tokens to the Resource Exchange and receives in change REX tokens at the current book value determined by the bancor algorithm and at a ratio of 1:1. REX tokens are non-transferable and merely an “accounting artefact”. The duration of each loan is 30 days.
eosrex.io has created a tutorial on how to use rex where they explain how to lend and borrow resources on their REX platform.
Borrowing CPU and NET is also very simple. The borrower of these resources pays the rent in EOS to the renter. Rent received is added to the lendable EOS pool. The amount of rent due is determined by the bancor algorithm which uses the number of “unlent EOS” and “rent received” as connector data points. The receiver account is then delegated the CPU/NET in exchange for rent.
Selling REX tokens for EOS to receive a share of the pool cannot be completed until 4 days have passed from the purchase date. After 4 days, a user can then sell back REX to the pool to receive back the EOS sent plus the reward. If no unlent EOS is liquid (all rented), the sell order is placed into a queue and filled upon availability.
How to access REX
There are many platforms which you can use to get access to REX
EOS Authority https://eosauthority.com/rex
EOSDAQ : https://eosdaq.com
EOSREX : https://eosrex.io
Bloks.io : https://bloks.io/rex
Chintai : https://eos.chintai.io/
TokenPocket : https://rex.tokenpocket.pro/#
EOS Titan : https://eostitan.com/rex
EOS Inbox : https://eosinbox.io/
How to choose a proxy
In order to use REX you need to meet voting requirements for at least 21 BPs or to delegate your voting power to a proxy. You can choose mine eosnetworkxx or you can use one proxy from the list of proxies.
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