Crypto Explainer Video
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EnglishVoice Age
Young Adult (18-35)Accents
North American (General)Transcript
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What is EOS Rex and how does it work? Brought to you by EOS racks dot io to first provide some contacts. Let's note that by design, the Eos Blockchain requires users that have CPU and network bandwidth resource is allocated to their account in order to interact with the network. The EOS Blockchain divides the available bandwidth evenly among all staked EOS tokens, which are effectively locked up. This meant that someone in need of CPU and network resource is needed to purchase Eos tokens and stake them in order to get access to network. Resource is. This led to an exposure risk from token price volatility and potentially expensive capital costs. On August 2nd 2018 Dan Larmer announced EOS REX short for EOS Resource Exchange As a solution for lowering the capital cost of acquiring CPU and network resource is needed to interact with the network. This solution essentially gives those in need of network Resource is the ability to borrow CPU and network bandwidth for periods of 30 days by paying rent as an alternative toe, having to buy tokens, and it gives token holders Theobald City to earn fees by lending their tokens unused resource is further to help increase the networks. Voter participation the rex requires. Those wanting to lend Eos toe have voted for a proxy or at least 21 block producers and EOS lent into the pool still count towards the voting weight of the token owner. So how does EOS rex work? EOS REX is a system level smart contract allowing EOS token holders toe lend their tokens into a pool of Len doble. EOS as Eos tokens. Air deposited Rex tokens are automatically minted by the smart contract at any amount necessary to maintain the current ratio of Eos to Rex, in this example, a 1 to 1 ratio. Similarly, when users withdraw from the pool, REX is burned by the smart contract, maintaining the existing ratio. In other words, lending in and out of the pool does not affect the ratio of Eos to Rex. One important thing to note is that even though rex tokens can be owned by specific users, they're technically not tokens. Since Rex will not allow them to be withdrawn or transferred out of the resource exchange, they merely serve as a convenient unit of account inside of the Rex. Now, since lending Eos into the pool mints rex tokens owned by a specific user it is referred to as buying Rex. Similarly, withdrawing or UNL ending Eos from the pool burns own Drax and is referred to as selling Rex. So how do lenders make a profit? Suppose you lent one Eos into the pool at a ratio of 1 to 1, meaning you bought Rex when one EOS was equal to one rex as the Eos in the Lend Herbal Pool lends its allocated CPU and network resource is to those in need. Rental income is generated and deposited into the pool of Len doble EOS, thereby increasing the ratio of Eos to Rex. In addition to rent, other sources of network income, such as RAM trading fees and premium name auctions known as name bids can be added to the pool by referendum vote, further increasing the ratio of Eos to Rex no sooner than four days from purchase, known as the maturity date. You may withdraw Eos from the pool by selling Rex at the current higher ratio of 1.5 to 1. In this example, you would sell Rex when 1.5 EOS was equal toe one REX, thereby making a profit of 10.5 EOS. Note that these are hypothetical numbers and actual numbers depend on the amount of rent and other fees deposited into the pool, as well as the amount of Eos in the pool sharing those profits. Remember to do your own research before participating in racks. For more information, visit EOS rex dot io.