The new year has only started, and there are already some massive developments in the cryptocurrency industry. These days, headlines are dominated by stories of Bitcoin hitting new all-time highs (ATHs) every few days. Meanwhile, central banks around the world are still rushing to develop their own native coins.
Even the DeFi sector — the biggest trend of 2020 — continues to grow. It added around $4 billion to its TVL (Total Value Locked) in the first few days of the year. Investors around the world are developing interest in DeFi, particularly in projects that allow them to earn a passive profit simply by holding their coins.
This is why revolutionary earning protocols, such as Axion, continue to grow rapidly.
What You Need to Know About Axion
Axion is a popular DeFi project that is actually only two months old. It is a network that offers users to earn rewards in exchange for staking their tokens for a specific amount of time.
Essentially, Axion users get to experience a crypto version of certificates of deposit (CDs) — an investment vehicle that provides a safe way to store tokens and earn rewards for keeping them locked up.
It is all very transparent and done with smart contracts. In other words, it is based on blockchain technology, completely immutable, and highly secure. Of course, Axion is not the only project that offers such a deal, but it is unique when it comes to the details.
Unlike its competitors from crypto or traditional finance — Axion offers an 8% yield — four times more than anything you can find in traditional finance. On top of that, it is actually based on a very simple concept.
Essentially, users agree to lock up their coins for a specific period of time. If they respect the conditions, they get a reward. If they try to withdraw too soon or too late, they get penalized. These penalties serve to maintain Axion’s ecosystem. The project collects some tokens from penalized users, and then sells them to its community in daily auctions, in exchange for Ethereum.
Axion then uses 80% of the ETH coins to buy back AXN tokens from exchanges, while 20% is used for investing in its own network — improvements, new developments, and alike.
In addition, the fact that users are obligated to keep their coins for a specific period prevents sudden sell-offs, so AXN price doesn’t suffer as strong volatility as the rest of the crypto industry.
Lastly, Axion is very safety-oriented. It does not take chances when it comes to security, and even the tiniest bits of code are being reviewed by entire teams before being implemented.
Axion Announced Three Major Developments
While Axion doesn’t even have two full months at the time of writing, the project has already made some major advancements when it comes to development.
The coin has made numerous announcements already, such as the one where it announced the arrival of its own credit card. Now, don’t mistake this with crypto debit cards that many other projects offer. Their crypto cards work by allowing you to store coins in an app, and then spend them with the card.
In other words, those are a true crypto debit card. Axion’s card is a credit card, where you use cryptocurrency as collateral, and get to keep it safe while you actually pay with credit. As long as you pay what you spent back in time, your coins will remain untouched, waiting for you to use them again, withdraw them, or use them for earning rewards.
Speaking of rewards, Axion also announced an update that will come in the next few weeks, and that will allow users to receive rewards in Wrapped Bitcoin, or another token. This second coin has yet to be voted by the community, but it is interesting to know that users will have a choice — a chance to select the token that they will receive.
Lastly, Axion also announced another product, known as the liquidity amplifier. Essentially, the project has been conducting research over the last several weeks, during the initial pre-development state, which led it to conclude that a product such as a liquidity amplifier would be extremely valuable to its ecosystem.
As the name suggests, the product will increase AXN liquidity by offering 5 billion AXN to liquidity providers, alongside rewards for providing liquidity on a real-time basis.
The AXN team believes that this is the way to go, and that it can secure some incredible numbers for the project’s liquidity pool.
Apart from this, the project already has a lot more planned for the year, including website redesign, new marketing initiatives, gas optimizations, venture auctions, and more.
