Equilibrium and EOS Authority Implements REX Staking Functionality

July 05, 2019
Equilibrium and EOS Authority Implements REX Staking Functionality

The ability to stake Equilibrium’s EOS collateral into REX is a significant project milestone, and we’re pleased to announce it is officially live.

This means all of the 2.5 million (and growing) EOS stored as collateral will be staked to REX, allowing us to distribute REX rewards back to Equilibrium framework users. This feature is an exciting step in our roadmap because it allows for EOS tokens to be used in ways that go beyond collateral that backs EOSDT.

We are partnering with EOS Authority, the signature block producer that’s been instrumental in the REX system creation for the EOS blockchain, to make it happen. They are also helping us with a smooth integration, and will later add Equilibrium’s widget to their system so EOSDT and NUT can operate on the EOS Authority web wallet and EOS blockchain explorer.

REX staking within the Equilibrium framework works as follows:

Every five days, we send 10% of the total amount of EOS locked in Equilibrium to REX, gradually approaching 100% in total — this is currently about 2.5 million EOS. These 10% increments go toward REX staking. REX price increases when users borrow CPU/NET resources on the resource exchange, so herein lies the potential for making extra profit on Equilibrium collateral holdings. Equilibrium will ultimately get more EOS from the REX system than it’s put there if users lend resources there.

We calculate the profit from REX appreciation every five days. We don’t sell REX to fix the gain, but instead stake less EOS than required for the amount of current profit next time. Then we distribute 50% of the unstaked amount to the liquidator smart contract, where it can be bought with NUT tokens at a 6% discount from the current oracle price. The remaining 50% goes to collateral holders in proportion with their collateral amounts.

As you know, voting for EOS block producers (BPs) or a proxy is required to lend REX resources within the EOS platform. We are actively developing the functionality of on-chain voting for Native Utility Tokens (NUT) holders now. We believe that voting is important for the health of the EOS ecosystem and we’re in the process of developing fair, game-proof mechanics.

We’re currently conducting online voting to build a list of 30 BPs to be put into the Equilibrium proxy. Equilibrium has now collateralized about 2.5 million EOS, all of which will eventually be staked to the REX, and all that EOS will go toward voting for the 30 selected BPs.

We expect to complete the final on-chain voting algorithm by the end of Q3 2019. When it’s complete, NUT holders will have the ability to periodically re-elect the list of BPs for REX proxy voting.

The Equilibrium framework is a software service with a consensus based governance system. EOSDT and Native Utility Token (NUT) are not a security or a regulated instrument. The use of this site and the Equilibrium self-service gateway is subject to Terms and Conditions, by accessing this site you agree to these Terms.