16. What is EOSREX?
It is a decentralized marketplace, offering different products from those we have come to know so far. With EOS, users share processor, network, and memory with other people. And of course – they earn a lot of money from it. The creator of EOSREX is the Block.one company. It is also behind the development of the EOS system. It is certainly more scalable and functional than, for example, the Ethereum ecosystem. Therefore, in the crypto world, EOSREX is often defined as an advanced DeFi. Let’s take a closer look at this issue ☺
The genesis of EOSREX
EOSREX stands for “EOS Resource EXchange” or “EOS Resource Exchange”. As you can see, it is the same name, differing by one letter. A proposal to develop this system was presented on August 2, 2018 by Dan Larimer on the official Block.one blog. He wanted to create a marketplace for leasing resources, i.e., processors, memory, and networks for EOS users.
How does this work in practice? Network users own their EOS or some of its memory/network/processor resources. They store them on the market and offer them to other users on credit. In this way, other network users gain access to them, in return for paying a fee. Thanks to this solution, we have access to many resources, which at the same time generate profit for their holders. And it all works, solving one of the most serious problems of the EOS system: network congestion. Thus, on 13 December 2018, the first version of EOSREX was released, becoming the first EOS DeFi platform since then.
Before EOSREX came along, the EOS system had serious issues with congestion. They prevented it from functioning properly. Transactions or interactions with Dapps were virtually impossible. All because the network resources were not sufficient for the demand. So, it was necessary to find a way to encourage, especially large owners of resources, to rent them. This is how EOSREX came about. At the time the platform was launched, over 40% of the unused network resources had been taken up. This can be considered a complete success of the initiative.
EOSREX is a DeFi system where we don’t have a pool of assets, but a pool of resources. As a user, you rent them whenever you want. What’s more, if you own CPU / network or memory resources and rent them out, you get extra profits for marketing the above resources and offering them for rent. In this system, we have the advantage that we can always withdraw them – practically whenever we want, and regain full control over them.
EOSREX – how does it work?
The whole mechanism from the inside works very simply. Being an EOS user, we need a processor, memory, and network to perform some operation. The processor is used to process information about the transaction or operation we are performing. Memory is necessary for us to store the information that the operation needs to perform in the EOS virtual machine. The network, on the other hand, allows us to send and receive responses from the network, which is part of the EOS. As you can see, the whole system works completely differently from other DeFi platforms, or even Bitcoin and its commissions. We find some similarities in Ethereum, where, like this ecosystem, EOSREX works by relying on smart contracts.
You already know how the complete mechanism works. So, you’ve probably guessed what the purpose of the complete system is. EOSREX is supposed to be a marketplace where users with a lot of CPU, memory, and network resources will rent them. As a system explorer, not having enough resources (CPU, memory, network) you sublet them and do further operations. Users who place their resources or EOS in EOSREX earn a percentage based on their share of the system. It is also fed with interest from any loan the system itself makes.
The REX token is a key component of the system. It is the unit of internal stability. Literally – it represents the business claims of the REX group. As a user, you have to take care of your privileges, such as voting rights or keeping your EOS. And that’s what REX is for. By downloading resources within EOSREX or the EOS system, you also acquire REX.
What is very fascinating is that we can only sell REX tokens after four days of acquiring it. The smart contract that manages this token takes meticulous care of this. All this to avoid excessive market manipulation with its use. By staking REX, you receive dividends that are later reflected in EOS. This is very beneficial, especially for those who are staking short-term. How else do you make money? The price of the token increases with the demand for resources and any additional fees. So, you can sell it at any most profitable time.
EOSREX – benefits and summary
The first, which is the most prominent, is to allow users or DApps who do not have the resources to perform operations on the network to rent this inventory for a low price. The second advantage is the ability to rent EOS tokens on their accounts or CPU or network resources, in exchange for passive income. Moreover, – EOS tokens can be converted into REX tokens and then used in transactions.
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