Source Protocol – an up-and-coming smartchain and interoperable DeFi ecosystem – has set out to lower the barriers of entry to this new financial landscape through its suite of products and automated protocols that allows users from all walks of life to easily participate in DeFi. In this pursuit, Source is preparing to launch its first utility-based reward token, Source Token (SRCX); a smart contract token that enables users to passively participate in DeFi markets.
SRCX Yield Echoes and the Dynamic Compound Liquidity Pool (DCLP)
Launching on Binance Smart Chain, the world’s largest crypto network by volume, Source Token utilizes a built-in automation fee that sends a percentage of every transaction to Source’s Dynamic Compound Liquidity Pool (DCLP), a basket of stablecoin liquidity positions within Source’s decentralized money market, Source Marketplace, where users can lend, borrow, stake, and yield farm with their crypto assets. Rewards, called “Yield Echoes,” derived from these interest-bearing liquidity positions are then automatically redistributed to Source Token holders and network participants, enabling them to reap all of DeFi’s benefits without having to participate themselves.
SRCX Loyalty Echoes
In addition to Yield Echoes, SRCX holders and users also benefit from “Loyalty Echoes,” which are generated block-by-block, with every transaction that takes place on the Source Token network. Enabled by the same automation fee, a percentage of each transaction is redistributed directly to all SRCX holders and network participants with every buy, sell or transfer that takes place on the network. The higher the transactional volume, the more Loyalty Echoes are generated for all holders. Loyalty Echoes are designed to incentivize long term participation with SRCX and its Source ecosystem counterparts, and also help compensate the holder for the automation fee.
SRCX Burn Feature
To offset any inflationary measures caused by Loyalty Echoes and Yield Echoes, SRCX contains a large burn wallet that will be deployed at genesis. The burn wallet is a “black hole” wallet address with no private keys, and tokens sent to it are gone forever. Since this wallet is the largest holder on the network, it receives the largest portion of Loyalty Echoes and is blacklisted from receiving Yielding Echoes. Incentive programs will be launched where this wallet will occasionally be blacklisted during promotional periods, which will increase rewards for all SRCX holders and participants. As the network grows, it is also possible for the burn wallet to be blacklisted indefinitely. This creates a balanced network and promotes long term sustainability of the protocol, which benefits all.
Importantly, SRCX’s passive automation fee will be reduced as adoption and transaction volume increases over time. It’s also worth noting that all of the above is accomplished non-custodially and with peer-to-peer initiated smart contracts, so there are no middlemen involved, and users have full independence with their SRCX holdings.
Looking to the Future
With its upcoming launch of SRCX, Source Protocol will soon become a leader in the DeFi space by executing its vision of making blockchain and web3-based financial services more easily accessible, less complicated and more efficient, empowering Source users to have complete ownership and control over their finances.
Source Token – SRCX – will be one of the main factors driving this growth and development, helping users regardless of their experience with cryptocurrency gain access to all DeFi has to offer via one token. SRCX is going to assist in breaking through the barrier of entry to DeFi for retail and enterprise users alike, and will open the floodgates for anyone, regardless of technical know-how, to easily participate. With its dual-reward Echoes structure, SRCX is also an excellent alternative to PoW (proof-of-work) mining networks, without having to afford the necessary hardware and resources required to mine cryptocurrencies.
Launch dates of the Source Token SRCX will be announced soon. To stay up to date on Source Protocol and their plans, visit the website and follow the project on Twitter and Instagram. For a chance to be entered into the whitelist for the SRCX launch, please join Source’s Discord channel. For more detailed information about Source Token (SRCX), visit Source Protocol’s documentation.