Deflationary token, inflationary APR: $CHANGE tokenomics, Leveraged Staking, and burn mechanism

The possibilities to truly get crypto to work for you have become numerous, if not overwhelming, with countless tools that serve to empower users. And, while they do, many are hard to set up and even harder to get up to full speed, leaving Proof-of-Stake (PoS) assets severely underpowered and with tons of unfulfilled potential. The $CHANGE token will redefine exactly this, leveraging the PoS economy inside the Changex app to unlock new possibilities. Let’s explore how it will achieve this.

CHANGE is the native token of the Changex app and it has a unique utility of facilitating and empowering the DeFi tools that come as in-app functionalities. CHANGE will have its economy based on an HRC20 token (HydraChain) and will aim to bring not only powerful synergy for the HYDRA ecosystem, but also to enable an attractive product to other PoS chains.

The launchpad for the project will be HYDRA (~55% APR) and CAKE (~45% APR), and the team will work to onboard additional PoS assets into the platform in the future in order to facilitate widespread DeFi adoption.

Deflationary token, providing inflationary APR

A deflationary token in its own right, the CHANGE token will benefit from several mechanisms that will serve to reduce its supply and push the token price upwards.

Despite CHANGE’s deflationary nature, the token will be able to offer unprecedented APRs that are characteristic of PoS inflationary assets, by serving as the meeting point for all such staked assets in the app.

The Changex app will utilize the power of flexible staking pools that generate high APRs and allow for immediate staking and redeeming of tokens, without harming revenue.

A flexible staking pool service always charges a fee (%) on the gross income it generates. If, for example, you decide to stake HYDRA and CAKE inside the Changex app, the income generated by these two assets will be taxed with a commission (e.g. 5% for HYDRA). By holding CHANGE, which will serve as a bridge between these assets and the end user, this inflationary income will be airdropped to CHANGE token holders.

As per the proposed economy, this means that by holding CHANGE you will be receiving the fees that the flexible pools generate from all staked assets. The more staked assets in the app, the more CHANGE’s price will grow and the bigger the rewards you as a staker will receive.

Thus, a mere 5% commission puts Changex in a very competitive position, allowing for a consistent and strong income stream from several assets that bundle together for a much higher APR.

There are two ways to distribute the rewards from the staked assets: they will either be paid out in their respective tokens, or they will be paid out entirely in CHANGE tokens. The latter scenario is the preferred one, because it would allow for auto-compounding, it would create additional demand for CHANGE, and your holdings would be much easier to handle (paying out rewards in several tokens would result in a lot of dust).

This mechanism essentially builds a bridge between the staked inflationary assets in the app and the deflationary economy of CHANGE, with you, the end user, being on the receiving end of a highly-profitable DeFi economic model.

First-ever Leveraged Staking

CHANGE will power a first-of-its-kind Leveraged Staking product, designed specifically for PoS and inflationary assets in order to magnify the APR impact. This will be achieved through specialized collateralized staking pools, configurable with a leverage factor between 1.2x and 2x (or no leverage at all) and borrowed against an open stablecoin market.

The accounts used for Leveraged Staking that do the borrowing will also result in an attractive APR for the stablecoin lenders themselves. In a successful scenario, and if demand for leveraged staking is high, that on its end would drive the demand for sustainable lending, creating a profitable loop for everyone.

The Leveraged Staking product is what makes Changex an attractive partner to any PoS chain. Changex will utilize the appeal of its product to grow the number and significance of partnerships and to onboard communities and capital under its hood, offering more and more opportunities to maximize passive income.

The more CHANGE is used, the more CHANGE is burned

By now we’ve seen that CHANGE will not only provide unprecedented APRs thanks to its “communication” with PoS assets, but will also grow in price because staking will actually cause more demand for CHANGE, while maintaining its fixed supply.

CHANGE’s price action will also be pushed further upwards by an intricate buy and burn mechanism, where 30% of all fees from crypto-to-crypto swaps in the app will be used to buy CHANGE and then burn it, theoretically increasing its price due to increased scarcity.

This results in some truly groundbreaking tokenomics and will serve to empower an app with the potential to change how crypto works in its entirety.

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The Changex team

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