One commonly overlooked area of decentralized finance? Decentralized advertising.
A decentralized advertising network that focuses on ethical and private ads, AdEx has been around for years but has recently doubled down on DeFi and new staking incentives. Let’s dive deeper into AdEx’s staking mechanics to see how this young project has built toward the DeFi market.
The Rise of AdEx Staking
In late 2018, the AdEx team first announced ADX staking. The system entailed validators, i.e. ADX depositors, backing ad campaigns and processing micropayments (now paid out in the Dai stablecoin and/or ADX) on the AdEx network.
Thus when ads on this network generate impressions, they earn fees into a staking pool that pays out on a pro-rata basis to ADX stakers. The validator fee per ad campaign is 7%, and there are ultimately set to be different staking pools with different compositional parameters.
Things picked up steam in December 2019 when AdEx first rolled out the ADX staking app, which offered users their first chance to start providing security for AdEx ad campaigns. The first staking rewards started being distributed in Q1 2020, which were “backdated” to cover stakers who had provided their services since the staking app opened.
The DeFi Revamp
DeFi lending project Compound sent the ecosystem abuzzing this summer when it launched the COMP governance token and started rewarding it to borrowers and lenders of the Compound protocol.
The move sent DeFi’s new “yield farming” phenomenon into high gear and caused more than a few projects in the space to pay close attention. One of those projects was AdEx. Accordingly, in July 2020 the AdEx team revealed an ADX token upgrade that would 1) optimize ADX for DeFi interactions, and 2) introduce a new token rewards system (a.k.a “security mining”) centered around…