Yield (Security) Mining on AdEx Network

I don’t know how familiar you are with AdEx Network but the project recently introduced Staking initiative for ADX holders with up to 400% APY and built-in flash loans feature, so it might be interesting for DeFi-ers.

AdEx Network is a decentralized ad network that connects publishers and advertisers without intermediaries and introduces transparency and honesty in display advertising, recording information about ad impressions on the Ethereum Network.

The native token ADX is used to stake on the AdEx Platform against the reputation and uptime of validators, which process micropayments from advertisers to publishers. In 2020, AdEx rolled out a staking portal where everyone can stake ADX tokens and earn money by receiving a proportional share of the total transaction fees in DAI on the network.

Two weeks ago the AdEx team introduced new token economics for ADX to encourage staking by “security mining” – getting additional ADX yield while staking their tokens. 7M new ADX will be minted and distributed to active (bonded) stakers by the end of 2020 – 1M will be distributed between early birds who already staked their ADX before August 10th and the rest 6M will be distributed between all stakers until the end of the year.

How to stake ADX tokens on AdEx Network?

  1. You need ADX to stake them on the AdEx staking portal. The ADX token was introduced in 2017 and is present on all reputable exchanges like Binance, Huobi, Kraken, etc. and on DEXs such as 1inch.exchange and Uniswap.

  2. Go to staking.adex.network where you can see the current total staked ADX.

  3. Click on “Stake Your ADX” and connect w. Metamask. The platform will open a window to create your bond. You can specify the ADX amount you are willing to stake and the Validator Pool on which you are staking. Currently the only pool available is Tom Validator Pool, but soon more will be added.

  4. Have in mind that once your ADX are locked up (bonded), you will not be able to withdraw them for at least 30 days. When you request that your tokens are released (“request unbond”), you will not receive rewards for that 30 day wait period.

  5. After you have staked your ADX, you can monitor what reward you’ve accumulated and what is your current APY. At the moment of writing this post I did a screenshot - I staked 40,000 ADX on August 8th and so far I have gained 3406 ADX (~ $663). Current APY for my bond is 276%.

  6. There’s more. When staking ADX you gain not only ADX, but also DAI from platform fees, meaning that the more ads are run on the platform, the more DAI you will get. Here are some formulas for calculating rewards:

DAI rewards:

annualValidatorVolume * validatorFee (distributed proportionally between pool stakers every 5 minutes)

Approximate annual yield for DAI rewards:

annualValidatorVolume * validatorFee / totalADXStakedInUSD

ADX rewards:

6 million ADX distributed proportionally between pool stakers every second

Approximate annual percentage yield for ADX rewards:

remainingADXToBeDistributed / totalADXStaked * (365/remainingDaysOfTheYear)

  1. Happy Security Mining guys!