Maximus

Maximus: Trustless Pooling for HEX Staking

Maximus is a smart contract designed for the trustless pooling of a max-length HEX stake. By leveraging blockchain technology, Maximus enables users to combine their HEX tokens into a single, large stake, maximizing the benefits of HEX's unique staking mechanisms.

What is a Smart Contract?

Definition and Functionality

Smart contracts are self-executing programs stored on a blockchain that run when predetermined conditions are met. They automate the execution of agreements, ensuring that all participants can be immediately certain of the outcome without involving intermediaries. This automation can also trigger subsequent actions when conditions are fulfilled.

Trustless Nature

One of the key advantages of smart contracts is their trustless nature. Participants do not need to rely on a third party, such as a bank or an individual, to execute transactions or functions. The contract operates autonomously, based on the code's predefined rules.

Understanding Gas Fees

What are Gas Fees?

Gas fees are charges users must pay to perform any function on the blockchain. For HEX, this includes starting and ending a stake. Gas fees cover the computational effort required to process and validate transactions on the network.

Impact on HEX Transactions

Due to increased demand, gas prices have risen significantly. Additionally, a recent security upgrade to the Ethereum network has made HEX and many other smart contracts 160% more expensive to execute in terms of gas fees.

What is HEX?

High-Interest Certificate of Deposit

HEX is the first blockchain-based high-interest Certificate of Deposit, rewarding investors who lock up or stake their holdings for a specified period. When starting a new stake, users burn their HEX and receive shares (called T-Shares) in return.

Earning Interest

Each day at midnight UTC, every T-Share accrues interest in HEX. The amount of interest earned depends on the number of T-Shares held. Upon stake completion, users can claim their principal investment plus the interest earned during the staking period.

HEX Bonuses

Bigger Pays Better

The Bigger Pays Better bonus incentivizes users to stake more HEX by providing a bonus of up to 10% for stakes of 150 million HEX or more. This bonus structure encourages larger stakes, enhancing the overall staking rewards.

Longer Pays Better

The Longer Pays Better bonus rewards users who stake their HEX for longer periods. Investors can earn up to a 20% bonus per year for stakes lasting up to 10 years. This bonus encourages long-term investment, increasing the potential returns for committed stakers.

Share Price Mechanism

Ensuring Fair Returns

To ensure that longer and larger stakes yield better returns over time, HEX employs a share price mechanism. Each time a stake ends, the gains are calculated as a share price, which future stakers must pay to convert their HEX into shares.

Heart to HEX Conversion

HEX's base unit is the Heart, with 100,000,000 Hearts per HEX. At launch, the share price was 1 share per Heart. The share price adjusts based on the return on investment for stakes. For example, if a stake ends with a 20% gain, the share price might increase to 1.2 Hearts per share.

Emergency End Stake

Early Termination Penalties

HEX users can terminate their stakes early, but they must pay a penalty. The contract calculates the payout for half (rounded up) of the committed days, subtracting this from the returned funds. A minimum penalty of 90 days always applies. For instance, if a user stakes for 52 weeks but terminates after 266 days, the payout for the first 182 days is deducted as a penalty.

Impact on Principal

If a user terminates their stake before serving half the committed days or if their stake is fewer than 179 days due to the 90-day minimum penalty, the penalty can reduce the principal amount.

Max Length HEX Stake

Maximum Staking Duration

The maximum staking period for HEX is 5555 days, or approximately 15.2 years. Staking for the maximum duration maximizes the number of T-Shares received due to the Longer Pays Better bonus and allows the user to earn yield for an extended period. However, this long-term commitment locks the funds until the stake ends.

Maximus DAO

Facilitating Trustless Pooling

Maximus DAO is a smart contract that facilitates the trustless pooling of max-length HEX stakes. By pooling their HEX tokens, users can collectively benefit from the enhanced staking rewards provided by HEX's bonus structures. Maximus DAO ensures a transparent and secure way for users to maximize their staking potential without relying on intermediaries.

Conclusion

Maximus offers a powerful solution for HEX holders looking to optimize their staking returns. By utilizing smart contracts, it provides a trustless, automated way to pool HEX stakes, benefiting from the Bigger Pays Better and Longer Pays Better bonuses. Maximus's approach ensures that participants can maximize their rewards while maintaining control over their investments.

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