Important information: This is a sponsored story. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances
The traditional financial world uses credit on a number of days that both benefit lenders and borrowers. One of those ways are certificates of deposit (CDs) which are savings products that allow savers to earn interest on a lump sum for a specific period.
While savings accounts allow clients to manage their funds freely, CDs differ by having the money untouched for the entirety of the firm. If someone wants to withdraw the funds earlier, they risk penalty fees or lost interest.
The lost liquidity means CDs have a higher interest rate than regular savings accounts. While almost all traditional financial institutions offer CDs, in the crypto world, they have been left almost unexplored.
One project bringing CDs onto the blockchain is REX, a BNB Chain BEP-20 token that allows users to earn interest on their cryptocurrency holdings through premium interest rates in exchange for staking.
What Is REX?
As mentioned above, REX is a cryptocurrency designed to be a blockchain-based certificate of deposit, similar to a well-known token known as HEX. REX offers a higher return than traditional Certificates of Deposit and immense flexibility by bringing in a plethora of new functions.
With REX, users can rename their stakes to keep track of their purpose, for example naming a stake “new car” to keep track of their goal. In case investors need funds, they are able to scrape off interest from immature stakes to avoid penalties, or split a stake in two to maintain some of the funds in the CD.
REX allows investors to earn an annual percentage rate (APR) of up to 50%. Moreover, REX achieves a fair token distribution through a mechanism called Daily Auctions. That mechanism means REX are being auctioned for a certain period of time, and anyone may participate in these auctions and reserve a portion by sacrificing the values of specific tokens.
When a user enters these daily auctions and stakes the received REX, they become eligible to receive Personal Random Big Pay Days (BPDs), who send users their sacrificed values back, or even more. To date, $4 million have been paid out in BUSD through this mechanism while allowing users to get REX for free.
REX has put a heavy focus on security. The project is triple-audited with three security audits, 13 testnets, one bug bounty program that rewards white hat hackers who find vulnerabilities, and with tests conducted by Solidity.Finance and Certik.
The REX ecosystem consists of several smart contracts on the BNB Chain, so it offers the security and immutability of one of the largest blockchain networks in the world. REX, when compared to HEX, allows for an early entrance – but there’s more to compare.
REX vs. HEX
REX has been dubbed an “improved version of HEX” as its auction lasts for 222 days instead of HEX’s 351. Big paydays occur every day on the REX ecosystem, while HEX has a massive payday only.
On HEX, the maximum length of a CD is 15 years, while on REX that length is shortened to 10 years. On HEX it’s impossible to split stakes, rename them, or transfer them to someone else. On REX, all of this is possible as flexibility is significantly improved.
Selling stakes on HEX isn’t possible, while on REX, after 111 days, the stake can be cashed out. Shares increase on REX through MREX, which provides 10% more REX in auctions, and with TREX, which provides 25% more shares.
HEX does not have a maximum supply, just like REX. Other REX ecosystem tokens, however, do have a maximum supply as MREX is limited to 10,000 while TREX is limited to 40,000 tokens,
Because HEX is based on the Ethereum blockchain, it has higher transaction fees than REX, which is based on the lower-fee BNB Chain. BNB Chain, it’s worth noting, is also compatible with the Ethereum Virtual Machine.
Visit REX.io to find out more about the project and whether it’s right for you.