xProject — Inception of safety in DeFi
Tags: Defi, Insurance, Crypto

Since the inception of the decentralized space, safety has been a major concern for everyone. Enormous risks are taken with every trade that traders undergo on a daily basis. Contracts that are said to be smart often run away with all your money; and such a scenario is very common in the decentralized crypto space. Losses are huge and in the end, there is no way out except blaming yourself for the trading decision that you made.

But, is there a way that can help us minimize these losses?

What if you could insure your trades? What if you could know beforehand if a contract was malicious?

That’s exactly the reason why, we are launching xProject, a Decentralized ecosystem, which will help traders who have suffered from major losses in the DeFi space due to “rug pulls” and other malicious attacks. This will be done by insuring every trade, helping you- the trader, to detect malicious contracts, and on top of that earn passive income through farming in a unique way!

xInsure — Insure your trades today

The easiest way to insure a trade is to hold xProject’s SXT token. Once you start holding a minimum amount of SXT tokens, you automatically become eligible to claim an insurance if you face a situation where a project’s stakeholder(s) have removed the value of the asset or abandoned the project.

The minimum amount of SXT token that a user needs to be holding to be eligible for claim is 10.

The percentage of claims in the below table indicates the percentage of LP tokens that a user will be given which directly depends on the amount of funds lost.

Every person eligible for a claim will be paid in SXT tokens. Claimers will be allocated LP tokens equal to their claim percentage and xInsure contract will stake LP tokens on their behalf. However, a claimer can only claim the rewards and will have no access to the LP tokens.

Each rewards cycle is of 12 days, first one being the locking period, which means that rewards will be distributed after a minimum of 12 days. Within each cycle, if the claim amount is reached, one can claim the rewards immediately after the completion of the cycle without any penalty. In case, one chooses to claim the rewards in the middle of a cycle, a 4% penalty will be charged. Penalty will be reduced by 1% every 12 days till it reaches 1%. The penalty will be used to reward more claimers.

It is very important to note that xProject considers a person to be a claimer who holds a token whose valuable assets have got removed by 90% or more by the malicious development team of that token. The contract of the token needs to be audited to be eligible for a claim. Presales are not covered under xInsure.

xGauge — Validate before you buy

Have you ever validated a trade decision before buying? If you have, what did you do? Did you actually go in and read the entire codebase? Or did you just follow your guts?

Time to be gutsy and at the same time be educated enough about a project’s codebase through xGauge, which will be an AI contract validator that can scan through smart contracts and detect a set of functions in the code that has a potential risk attached to it. In the end you get a report card for every project you are investing in, that way you can be rest assured of your money being in safe hands. Below are the functions that xGauge will be evaluate.

Contract Creator Address — is an address which has created the contract.

Tornado Cash History — verifies if the contract creator has a link to Tornado Cash, an Etherium mixer used to hide source of funds.

Previous scams (if any) — Shall spot any previous scams by the contract creator.

Same pattern as other scams

Source code (If forked) — Forked is a term used to signify a copy of a different codebase. This necessarily do not mean a scam, it is just a parameter to judge if a project is being developed from scratch.

Mint function — signifies if the contract owner can generate more tokens. This might not necessarily be malicious, but can be used to scam people if the token is not supposed to generate new ones.

Rebase function — This function allows the supply of a token to increase or decrease. Some projects can have “secret” rebases that increase token holdings for a particular wallet, which would allow for a massive dump similar to minting.

Cannot sell function — This prevents the user from selling the token.

setGovernance function — Lets its owner call any function in the name of the contract, ultimately draining your entire token balance.

Time Lock function — Timelocking is a way to protect token holders from potentially harmful actions from the team or contract creator.

xForum — Discuss and make defi a safer place

xForum is your one stop platform where you can discuss everything related to trades in the defi space. Here, you can share your ideas and can listen to the some of the best brains trading out there and what they think about a particular project. Discussions will always be data driven to reach conclusions in an effective manner. Such discussions will help every user understand projects better and be aware of potential scams before investing into one. Below are the two major categories of discussion in which you can participate.

1. Potential scams — Users can share solid evidences to prove illegitimacy of any DeFi project and make the public aware of teams behind such projects.

2. Investigation — xProject ecosystem users can post their own private investigation details and gather information. Once every bit of information is gathered and verified with solid evidences leading to a person responsible, the information will be compiled by the admins and published in the doxxed section.

xScore — how LONG is your score?

We have come up with a very unique concept called the xScore, which is a parameter that measures the timespan a user holds the SXT token.

xScore will be measured on a scale of 0 to 5 units, where each unit consists of 12 consecutive days.

A user would need to have a minimum of 1 xScore to be eligible to use xGauge for scanning through the contracts and a minimum of 2 xScore to become eligible for insurance coverage.

The highest score achievable is 5 which provides users with extra perks such as beta testing, early announcements and highest insurance coverage.

To better understand xScore, please refer to the table below.

Why Farm SXT?

The concept of yield farming in xProject’s ecosystem is here for a reason, it actually has a use case in the overall development of the xProject.

There will be a 2% tax on each and every transaction which will be directly rewarded only to the liquidity providers.

Liquidity providers will also be able to stake SXT-wETH LP tokens on the platform to earn SXT tokens in the higher amount.

Once staked, the SXT-wETH LP tokens will be locked for the initial 12 days which will disable stakers to unstake or claim rewards during that period. After 12 days, users will be able to claim their rewards or completely exit the pool, however, a 4% penalty will be charged on both unstaking and claiming which will directly go into the insurance pool. Unstaking and claiming penalty will reduce by 1% every 12 days until 1% penalty charges are reached.

The sole purpose of introducing yield farming concept into the ecosystem is collecting SXT-wETH LP tokens in the insurance pool and helping people earn a passive income.

The LP tokens collected in the insurance pool via unstaking and claiming penalty will help to kickstart xInsure.

External Resources