AdEx DeFi Platform: Earn generous rewards with staking

Updated on: February 12th, 2021
This content has been Fact-Checked.
AdEx Staking Guide

AdEx is a decentralized advertising network that aims to make the advertisement space more ethical. The native token of the platform is ADX that’s used to incentivize validator uptime and ensure the smooth running of all the ad campaigns running on the platform. By staking the ADX tokens via the AdEx staking portal, stakers can participate in a real-world ad network and earn both DAI and ADX as rewards.

AdEx Project Background

Ivo Georgiev and Dimo Stoyanov founded AdEx Network. Both Georgiev and Stoyanov had previously worked on Stremio, a video entertainment platform. Georgiev has been serving as the CEO of Stremio since 2013, and Stoyanov – as a COO.

AdEx conducted their ICO or initial coin offering in mid-2017 and raised a total of 40,000 ETH (around $12 million back then) in less than 8 hours. Having reached their hardcap, they concluded their ICO in less than one working day.

Why do we need AdEx?

There are three major issues with advertisements as we know them today:

  • The platform is censorship-resistant and doesn’t impose minimum traffic requirements, minimum withdrawal amounts, etc.
  • No middlemen and extra fees – all AdEx charges is validator fees and Ethereum network fees. This brings in additional transparency as it minimizes the incentive for fraudulent reporting.
  • Privacy-focused ads: AdEx doesn’t collect any data about end users; instead, they use contextual targeting.

The AdEx Ecosystem

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There are four critical components to the AdEx ecosystem – publishers, advertisers, end users, and Validators.

 

Publishers

The publishers are one of the most critical cogs in the AdEx wheel. Not only do they own the websites that the users are visiting, but they also broadcast advertisements and get paid for those ads without having any minimum traffic requirement. There are three ways in which AdEx helps its publishers:

  • Control over ads: Publishers have full control over the kind of ads they want to display on their site. They can maximize the revenue they generate from their ads while minimizing negative user experience.
  • Monetization: Each impression and click on the ad is verified to ensure an authentic impression. This is generally bad for malicious publishers, but it is beneficial to the ecosystem as a whole. Falsely generated clicks are punishable, which it helps legit publishers make more money.
  • Direct contact with Advertisers: As things stand, direct conversation isn’t possible between Publishers and Advertisers since intermediaries mostly handle it. AdEx takes the middlemen out of this equation completely.
  • Full custody over funds: AdEx publishers have full custody of their earnings/funds which isn’t the case with other ad networks.


Advertisers

Advertisers can run their ads on multiple websites daily. The AdEx platform gives them the following advantages:

  • Lesser Fees: The overall fees charged for running ads is significantly lesser than other platforms. This enables advertisers to gain higher ROI than other advertising companies.
  • Advertising Flexibility: Contrary to centralized platforms AdEx allows you to advertise more sensitive products and services, as long as they are ethical and legal.
  • No Ad Fraud: With impression and click verification, AdEx plans to reduce or eliminate fraudulent activity from a malicious publisher. This could result in a higher ROI for advertisers.


End users

The final component of the AdEx ecosystem are the end users themselves. AdEx respects the privacy of its end users by not collecting any data about them.

Validators

Validators get appointed to each advertising campaign taking place on the platform. Campaigns are regarded as valid only if ⅔ of the validators have signed the reported traffic generated on the publisher’s platform. As such, they are majorly responsible for processing micropayments between publishers and advertisers through layer-2 payment channels.

What is the ADX token?

The native token of AdEx Network is ADX. The token’s main utility is to incentivize validator uptime and ensure the smooth functioning of advertising campaigns. The more tokens staked in the network, the stronger the reliability guarantees of the validator network.

The ADX token recently went through a significant upgrade that integrates with the DeFi and the yield farming ecosystem. Due to this upgrade, ADX:

  • Became the first ERC-20 token with built-in flash loans.
  • Reduces gas costs.
  • Helps update the existing rewards distribution model and introduce rewards not only in DAI but also in ADX.

How does staking in AdEx work?

Along with “DeFi”, “staking” is probably the hottest term in the crypto space right now. The idea behind staking is pretty simple. Lock up your tokens in a platform, and earn rewards. It is a simple way of earning passive income and making your crypto work for you. ADX holders can vouch for a particular validator by staking into their pool.

There are two more things that you need to know about AdEx staking:

  • You need to lock up a certain amount of tokens and create an ADX bond in the AdEX staking portal in order to earn rewards.
  • While bonds don’t have a time limit, there is an unbonding period of 30 days for which no rewards are earned. So, if you request an unbond, you stop earning rewards but you can’t take your tokens back to your wallet for 30 days. This is applicable only to the Validator Tom pool. The Loyalty pools earn lower rewards, but they don’t have an unbonding period (more on these two pools in a bit).
  • Stakers can earn both DAI and ADX rewards.

Where do the staking rewards come from?

  • DAI rewards come from validator fees that are taken from processed ad impression payments.
  • Each advertising campaign on AdEx is subject to 7% validator fees.
  • ADX rewards come from a 20 million newly minted ADX reward pool that was decided by the AdEx community on a governance vote in 2020.

As of now, 58,299,853.04 ADX have already been staked in the platform, and AdEx has already generated rewards worth 7,059,961.43 ADX or $2,861,762.42. They even have a cool little tool that can tell you exactly how much you can make if you invest X amount of ADX for Y months (keep in mind that actual rewards depend on different factors and this is only an estimate).

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The current annual percentage yield or APY is around 59%. So, going by these rates, if you staked 10,000 ADX for 6 months, you would receive rewards a little over 2,940 ADX. Do keep in mind, though, that the APY is dynamically-adjusted. With more ADX staked, the rewards percentage will decrease. You can either claim rewards right away or re-stake for compounding interest.

How can I stake in AdEx?

Ensure that you have a good browser wallet pre-installed. We would recommend MetaMask, though you can use any wallet that’s supported by WalletConnect. If you use a hardware wallet like Trezor or Ledger, then you can connect it to your MetaMask. Your wallet must have some ADX tokens to stake and some ETH to pay for gas.

Now go to https://www.adex.network/staking/ and press on the “Stake Now” button.

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Now, you will see this window. Here you can easily connect your MetaMask to the staking portal.

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Validator Tom Pool vs Loyalty Pool

Now, you have the option to choose between two pools – “Validator Tom” and the Loyalty Pool.

The Tom pool is the standard staking pool that allows you to earn rewards. It currently gives an APY of a little less than 60%.

Participation in the Loyalty Pool, on the other hand, enables you to participate in AdEx governance. This means that pool participants can vote on various proposals related to the development of AdEx, both the underlying protocol and the ad network on top of it. Proposals will be submitted by the AdEx team and voted on by the community. Proposal voting outcomes are not binding unless explicitly marked as such.

The loyalty pool, unlike regular validator pools, is tokenized. the ADX staked gets wrapped into ADX-LOYALTY which can be transferred, traded,, or otherwise interacted with. The Loyalty pool doesn’t have any lock-up period.

Feel free to stake your ADX in either of the pools.

What is gasless staking?

Another interesting feature of the AdEx platform is gasless staking which, as the name suggests, allows ADX holders to stake for free. So, how can you do this? Follow these steps:

Firstly, go to the Gasless Staking page.

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If you have already connected your wallet, you will receive a unique address for your gasless staking account. To this account, you can send as many ADX tokens as you want from other addresses or exchange accounts. As soon as 10,000 ADX have been deposited to that unique gasless address, you can stake without incurring gas fees.

There are a few things that you must keep in mind about gasless staking:

  • If you are sending ADX from other Ethereum addresses, you will still pay gas fees for the transactions.
  • However, if you are just holding or buying your ADX tokens on an exchange, you won’t be paying fees for the transactions (just withdraw taxes on the exchange). This way, you can obtain ADX tokens and stake them without paying fees.
  • You can make one gasless stake every 12 hours.

AdEx vs other staking platforms

Finally, let’s check how AdEx compares to the other staking platforms.

Project Token Tokens Staked% Reward%
Tezos XTZ 78.86% 5.33%
Cardano ADA 71% 4.24%
Qtum QTUM 22.14% 6.21%
Cosmos ATOM 66.82% 9.38%
AdEx ADX 51.28% 59.05%

As you can see, AdEx staking provides exponentially higher rewards when compared to some of its immediate competitors, even though more than half of its circulating supply is staked. Plus, it’s also solving one of the most significant issues plaguing the world today – unethical advertising. We believe that this is an excellent project which will generate tremendous value for itself and its users in the long-term.

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Disclaimer: This is a sponsored guide. Blockgeeks does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in this article. 

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