The Nexus Token
ABOUT NEXUS
How Does The Nexus Token Work?
The Nexus token utilizes a built in contract exchange system that renounces the need for a traditional liquidity pool. Rather than a liquidity pool pair of the backing asset to the token using a traditional market maker method for exchange and price calculation, both assets are stored within the contract itself.
Each consumer purchase interacts directly with the contract to buy the tokens with SmartChain BNB (BEP20). These contracts are more commonly referred to as “Swapper” Contracts. The SmartChain is routed to the contract address from the holder’s wallet, mitigating the need for a Decentralized Exchange (DEx) or Centralized Exchange (CEx). When the contract receives SmartChain BNB (BEP20), the SmartChain is swapped for the backing asset, and the price value equivalent of new tokens are minted to increase the total supply. These tokens are then sent to the user’s wallet address. Selling has the opposing effect of decreasing the total supply and supplying the backing asset to the seller.
How Does the Engineering Affect the Value?
The price is not set by the standard market maker protocol. Through the power of mathematics, the developer has found and used a different equation for determining the price and its movement.
Our price is determined by two factors:
- Volatility of the Backing Asset in the Contract
- Nexus Price Value Equation (Price = Backing Asset in the Contract รท Token Total Supply)
Our exchange system is entirely unique from other tokens currently on the market. For this reason, we have coined specific terms by which this exchange system can be referred:
The Liquidity pairing is designed as a SwapPair Liquidity (SWPL) System, in which a swapper contract is employed to perform an autonomous swap to the backing asset using the chain’s native coin. In our case, SmartChain BNB (BEP20).
The price action algorithm is described as a Price-Increase Tax Ratio (PTR). This algorithm allocates the tax on purchases and sales to shift the ratio between the Backing Asset and the dynamic Total Supply of the token more in favor of the backing asset. PTR maintains a consistent increase in token value to the backing asset regardless of the type of transaction executed.
PTR Contract Buy
There is a set % tax for both buys and sells. On a buy, new tokens are minted into the total supply.
Let’s use 6% as an example. The Total Supply of Tokens increases and the buyer will receive:
X_Nexus - (X_Nexus * .06)
94%
of the tokens purchased at current value
100%
of the BNB used for purchase is swapped for the value equivalent of the backing asset.
The backing asset is then routed to the contract pool.
Therefore, in this scenario, if the Asset and Nexus quantities were both equal before this transaction, PTR would cause a shift in favor of the backing asset, triggering an increase in the price value of the token.
PTR Contract Sell
When tokens are sold back to the contract, the seller pays the same set % tax on the asset they receive. 100% of the tokens sold are then destroyed and completely removed from the total supply. As a result, the Total Supply of Nexus decreases, and the seller receives:
X_Nexus - (X_Nexus * .06)
94%
of the Asset is received from the total worth from Tokens sold
So after a sell, the ratio shifts further in favor of the asset in the contract, as more is left in the contract and the token supply decreases. The variant tokens price value is increased further as a result.
The Benefits of Nexus Tokens
With the Nexus Token equation and tax system employed, the variant contracts are programmed to only increase the value of the token to the backing asset in the contract. In the case of non-volatile assets, the price value per token can never decrease, only ever increase as transactions are made. In the case of more volatile assets, volatility may affect the price trend in a downward direction or relent to more upward pressure in a bull run of the backing asset. That being said, the trading of the token may provide a buffer or resistance to negative volatility depending on the degree of increased volume.
The exchange functions employed by these token variants make it so that Nexus Tokens are entirely decentralized. There are no Liquidity Pool Pairings that need to be locked or controlled by a centralized entity or owner address. The design schematic is engineered in such a way as to improve overall functionality, return on investment, and security of investment for the end user.
All owner functions within the contracts are negated with the exception of those that may be used to securely crossover between PCS bridges (v2 > v3). These functions are necessary to protect the longevity of the project in the event the current server becomes obsolete. No callable owner functions exist that can negatively affect the contract functionality or value of assets.
Let’s build a future together