Wrapped XEP Token: Avoid Wrong Conclusions

On 2022-01-14 the liquidity pool was locked.

As an open source and decentralised non ICO project, the Electra Protocol team created the BSC 1:1 pegged wrapped XEP for the users who will want to trade through the BSC network. Decentralized exchanges need liquidity pools (LPs) and for this reason, the team injected a portion through owned funds. At the beginning, the team LP was unlocked. The reason behind was to re-inject and increase the LP in time. As we have seen several concerns and doubts coming from several users about the unlocked LP, the team decided to lock it as of Jan 14th. In the future, in case of additional LP increase, the team will create separate wallets and support the LP.

Wrapped XEPs tokens on the Binance Smart Chain are pegged 1:1 to XEP coins on the Electra Protocol blockchain. This means that users can always swap XEP tokens to XEP coins and vice versa using Txbit, even in the unlikely event of a total liquidity removal.

Original article, now partly deprecated:

Electra Protocol is an innovative layer-1 blockchain which launched its MainNet in January 2021. During 2022, its smart contracts platform will be launched. The blockchain is open-source and driven by a worldwide community of volunteers, just like Bitcoin. In comparison to almost all other layer-1 blockchains, the XEP cryptoproject did not conduct any public funding.

The native currency of Electra Protocol is called XEP and it is running on its own blockchain. 

As Electra Protocol has not received any public funding, the community is unwilling to pay excessive listing fees desired by most cryptoexchanges. As a result, XEP can yet only be bought on a limited number of exchanges. Also the listing process is longer compared to tokens running on existing blockchains, since technical developments have to be done by exchanges for connecting to the Electra Protocol blockchain.

In order to make XEP coins available to a larger audience, a Wrapped XEP token (called “XEP” on BSC) was created in October 2021 which is running on the BNB Chain. This is the token which you see when you use analytical tools made for the BSC chain.

Unusual Token Charateristics

Sometimes people perform research about XEP on platforms like PooCoin, in order to analyze the characteristics of a token. When analzying the XEP token on the BNB Chain, users are presented information that could lead to wrong conclusions, since you see the tokenomics of Wrapped XEP tokens and not tokenomics of the native XEP coins.

Some people may not know that XEP on the BNB Chain is just a wrapped version of the native XEP coin running on the Electra Protocol network. This situation is comparable to any wrapped token on other blockchains, for example WETH (BNB Chain) is a wrapped token version of ETH (Ethereum) and nothing is unusual about this. Common messages on BSC research sites are, when analyzing Wrapped XEP tokens:

Message: "An unlocked wallet is holding 83.35% of the XEP/BUSD LP."

The XEP liquidity provided to the BNB Chain was injected by the Electra Protocol community in order to provide liquidity for trading. The XEP tokens originate from the BNB Smart Chain collateral and were originally part of the community premine. This is not a problem, but an intended situation.

Message: "0% burn and 0% of tokens are locked."

PancakeSwap is used as an alternative trading method for Electra Protocol where a small portion of the premined coins is allocated on the BNB Chain. This allocation is also labelled through the wallet address by the team. The liquidity pair (LP) at PancakeSwap is unlocked on purpose, compared to other projects. The main reason is that from time to time the Electra Foundation tries to cautiously sell (wrapped) XEP tokens and put it back into the liquidity pool to increase the LP. In order to feed this liquidity back in, the wallet must be unlocked. Transactions and order book details can be tracked via the BSC Explorer for more transparency.

The World's Fastest Decentralized Blockchain

Electra Protocol is a layer-1 platform for near real-time transactions at almost no cost. Upcoming features include multicurrency payments and smart contracts that will empower anyone to create their own tokens. The possibilities are endless: payments, DeFi, NFTs, and more.

decentralized blockchain decentralized blockchain near realtime transactions near realtime transactions almost no gas fees almost no gas fees staking rewards staking rewards 55 smart contracts smart contracts