Why a reflection token?

The age old challenge of reflection tokens is volume. You need volume in order for reflections to work. And this is precisely what arbitrage elegantly solves.

Reason 1: Arbitrage

Since we have pools on multiple chains, the prices of those pools will be out of balance at times. In those instances, arbitrage can and will happen in order to realise risk free gains. This can be done manually by users to pocket these gains or later on by bots. Irrespective of WHO does the arbitrage, the volume is there.

I've myself started out in Web3 with Sniping & Sandwich bots years ago and saw the space get more and more competitive over time, so I'm certain that risk free profits WILL be arbitraged by someone, always.

These arbitrage opportunities don't even just rely on price differences of ScaleX between chains but are also created through price differences of tokens that ScaleX is paired against.

Please note that the give chains function as an example here and are NOT the chains we are initially launching on.

For example, if there is

• a S/WETH pool on main net and

• a S/WMATIC pool on Polygon and

• a S/WBNB pool on BSC

then price movements in ANY of S, ETH, MATIC and BNB will create an arbitrage opportunity for users. Meaning if any of the following pairs moves on any chain, there will be arbitrage:

• S/WETH

• S/WMATIC

• S/BNB

• WETH/WMATIC

• WETH/WBNB

• WMATIC/WBNB

This list grows exponentially as we add more chains to our belt in the future (see Fees & what they are used for).

Reason 2: Cashflow/passive income

In addition to all the airdrop farming opportunites, all the holders of ScaleX's token profit from the fees that are generated by arbitrageurs and airdrop farmers. This happens through reflections (seeWhat are reflections?& Omnichain reflections).

More tokens at a higher price!

The basic idea is that if someone transfers 10 tokens, 1 of them is taken and split between all holders, increasing their holdings. This process can be realised without changing the total supply, or increasing or decreasing it, creating inflation or deflation respectively.

In ScaleX, we opted for the latter using our custom reflection formula. So not only does the balance of every holder increase upon every transfer, the total supply is also reduced, creating deflationaty pressure and a value increase of the tokens at the same time. For more info on what we are doing exactly, please check Custom reflections formula.

Key factors driving value appreciation of our token:

• ScaleX is a powerful tool to farm multiple airdrops at once while at the same time generating income

• cross chain arbitrage creates volume and therefore reflections, which are emitted to all holders

• our custom reflection formula creates deflationary pressure, reducing the total amount of tokens in circulation

• a secret additional component soon to be revealed!