What is Xfinance? A Full-Stack DeFi Protocol

What is xFinance? A DeFi full stack on Ethereum

Xfinance is busy developing a whole range of DeFi products, powered by XFI token, built by the centralized exchange NowEx. The aim is to easily blend DeFi together with CeFi, enabling a smoother onboarding experience for crypto novices. XFI token holders will enjoy trading fee discounts, much how BNB works on Binance exchange. NowEx plans to use 30% of the platform’s monthly trading fees to buyback and burn XFI tokens. Given the total supply is only 50,000 XFI – the tokenomics will push the price up quickly. 

What is a full-stack DeFi protocol?

The quick answer is every popular decentralized finance product under one platform. With SushiSwap liquidity farming became popular. With Yearn Finance yield aggregators and vault products were born. Rarible made the crypto-collectibles and crypto art scene explode. MEME started a trend of non-fungible token (NFTs) mining. We find bZx Protocol for decentralized margin trading and perpetual contracts. And with xFinance, you find all of these crowd favorite products under one protocol.

What is Xfinance?

XFI is a combination of DeFi development on Ethereum, where the team will not limit themselves to any product. The idea is that the ecosystem’s value will be captured by XFI token. Consequently, profits will generate continuous buyback and burning. In fact, the team states on their website the aim is to keep burning until just one token is left. 

The DeFi Products

  • Staking: to incentivize long term holding. Users can stake XFI tokens to earn more XFI tokens at a daily APR of 0.2 to 0.3%. These tokens come from the ecosystem’s reward allocation, so will run out at some point. The catch is that there are 2.5% fees when you stake or unstake that a distributed among XFI stakers. As a result, we could compare the features of XFI staking to being a pyramid dApp. 
  • Swaps & Liquidity Mining: Users can find instant token swaps available through xSwap. The protocol’s automated market maker (AMM), which is governed by XFI holders. Liquidity providers on xSwap can earn additional rewards by staking their LP tokens to farm XSP tokens.
  • XSP Token: To keep farming operations sustainable XSP token has a much larger total supply of 2 billion. However, it has its own unique use case as you can stake XSP tokens to earn trading fees from xSwap. Every trade incurs a 0.3% trading fee. It is split as follows: 0.05% goes to XSP stakers, 0.2% to LPs, and 0.05% is used to buyback and burn XSP.
  • Perpetual contracts: In the future, the protocol will also have decentralized perpetual contracts for leverage trading called xPerp. Similar to flamingo finance, the team has said these will be powered by the AMM for high liquidity.  
  • Vaults: A now common product on DeFi platforms, the xVault is a yield aggregator. It will automatically move the user’s deposits to generate the highest possible returns. However, xVault will have withdrawal fees which will buyback and burn XFI.
  • Collectibles: A decentralized marketplace xNFT for trading non-fungible tokens. The team also announced that XFI stakers are going to receive additional rewards in unique NFT collectibles. Meaning the protocol will feature NFT mining also.

Looking to the future

As we can see Xfinance is busy building numerous DeFi products, and no doubt they will add more in the future. If you add in that the protocol is by NowEx with direct integrations into a centralized platform to bridge DeFi with CeFi. Suddenly, the growth potential of adoption looks tremendous. Keep your eyes on XFI!