❓FAQs

If you can't find an answer to your question here, please go to the learning section.

What is HEX?

HEX is the first high-interest Certificate of Deposit, which rewards investors who lock up or Stake their holdings for a period of time. When you start a new Stake you burn your HEX and receive Shares (called “T-Shares”) in return. Each day at midnight UTC, every single Share accrues interest in HEX. The more Shares you have the more interest you receive. When a stake ends, you are able to claim your principle investment + the interest earned.

What is Maxi?

Maximus DAO is a suite of immutable defi smart contracts focused on providing optimized staking pools and financial products for HEX holders. It allows users to stake their HEX tokens collectively in large pools to achieve better gas efficiency, higher yields, and other benefits compared to solo staking.

What is the difference between a pool token and solo staking?

Pool tokens are assets that represent a share in a Maximus staking pool. They offer liquidity and can be traded or redeemed for HEX at the end of the stake. Solo staking involves staking HEX directly, without the benefits of pooling or liquidity.

What are the Perpetuals?

They're like Maxi, but a bit different.

Key differences:

• Their lengths - they are all different lengths (10, 7, 3, 1 year HEX stakes)

• Hedron earned is distributed to TEAM holders

• 50% of the bigger pays better bonus is distributed to TEAM holders

• When the stake ends, the principle + yield is automatically re-staked for you allowing you to hold the tokens for decades without selling if you wish (Maxi has a hard end date).

Why was Maxi created?

Maxi was initially created to ensure the long-term health of the HEX ecosystem on Ethereum.

Due to certain changes in gas costs on the chain as well as how the HEX smart contract calculates rewards at the end of the stake, the gas needed to end a stake can be very expensive.

So high in fact that sometimes the stake itself may not be worth ending.

The creation of Maxi solved this problem by introducing a stake pooling smart contract built on top of HEX that allowed users to experience a 99%+ gas fee saving on ending stakes.

How is APY calculated for Maximus staking pools?

The APY for Maximus staking pools is calculated based on the total HEX staked, the staking duration, and the HEX yield generated by the pool.

The APY can vary depending on the market conditions and the staking behavior of HEX stakers.

What happened when MAXI & the Perpetuals launched?

i) Launch and Minting Phases

During the launch, users were given a specific minting period where they could deposit HEX in exchange for MAXI or Perpetual tokens. These tokens represent ownership in the collective staking pool and allow holders to participate in the staking rewards without needing to stake individually.

ii) Formation of Staking Pools:

The HEX collected during the minting phases was pooled together and staked as a single, large stake on the HEX network. This pooling mechanism provided significant advantages, such as reduced gas costs and access to bonus rewards from staking larger amounts.

iii) Liquidity and Flexibility

One of the major innovations was the introduction of liquidity through the tradability of MAXI and Perpetual tokens on decentralized exchanges. This allowed participants to trade their stake positions without having to wait for the staking period to end, adding a layer of flexibility that solo staking does not provide.

iv) Community Growth and Engagement:

The launch attracted a large number of HEX holders who were eager to benefit from the enhanced staking mechanics. It also fostered a strong community around Maximus DAO, as participants could collectively engage in discussions and strategies related to their pooled stakes.

v) Establishment of Reload and Redemption Cycles:

The Perpetual tokens introduced cycles of staking and redemption, where at the end of each staking period, participants could either redeem their HEX and yield or opt into a new staking cycle. This established an ongoing, cyclical opportunity for participation and reinvestment.

What are the benefits of using Maxi?

Staking with Maximus DAO offers several benefits, including:

• 99%+ end-stake gas fee savings

• Increased APY performance (Market price mechanics)

• Maximise BPB stake bonus (+20%)

• Fungible & transferable HEX stakes (Own fractions of a stake & move between wallets)

• Instant liquidity (Buy or sell at any time)

How do I participate in a stake?

i) To participate in a Maximus staking pool, you need to mint pool tokens during the minting phase using your HEX. These tokens represent your share in the staking pool and can be redeemed for HEX and accumulated interest once the stake ends. ii) You simply buy the token for the length of stake you wish to join. Buy here.

What happens when the stake ends?

i) Redemption Phase Begins: The redemption phase is initiated, allowing participants who hold pool tokens to redeem them for their share of the HEX principal plus the accrued interest.

ii) Claiming Your Share: You can claim your share by redeeming your pool tokens directly on the Maximus platform. The amount you receive will be based on the amount of pool tokens you hold relative to the total supply of pool tokens in the staking pool.

iii) Reload Phase (if applicable): In some cases, there might be a reload phase where users can choose to reinvest their HEX into a new staking pool or mint new pool tokens for the next cycle.

iv) Gas Fees: During the redemption process, gas fees will be required to complete the transaction on the blockchain. However, due to the pooled nature of the stake, these fees are generally much lower compared to ending a solo stake.

v) Optional Participation in Future Stakes: After redemption, you have the option to participate in future stakes by minting new pool tokens during the next minting phase if you wish to continue staking.

Liquidity Options: If you prefer not to redeem immediately, you can also trade your pool tokens on supported decentralized exchanges, allowing you to access liquidity without directly redeeming the stake.

Who pays for the end stake gas?

The end-stake function is a "public function", meaning it can be called by anyone.

If you are not the one that decides to run this function then you don't have to pay any of the gas for ending the stake.

One of the largest holders will likely pay the gas fee.

A voluntary donation contract may be set up at some point to help partially or fully reimburse that individual for their service.

Note: You will still have to pay a small transaction fee to claim all your rewards, but it should be considerably less than the fee to end the stake.

What happens if I don't redeem during the 'Reload Phase'?

Nothing bad happens. Your staked HEX principle + interest is re-staked and you will continue earning yield.

💡 Note: Just be aware that if you miss the Reload Phase, you will miss your chance to redeem your pool tokens for HEX. You may not be able to sell your tokens on the market for the price that you wish or if liquidity will be available to buy or sell. More info here.

What is the 'Reload Phase'?

This is a 1-2 week period of time after a pool token stake finishes where you have the opportunity to do 1 of 3 things:

1) Redeem your HEX principle + yield by giving up your pool tokens

2) Mint pool tokens at the new redemption rate by inputting HEX

3) Do nothing. If you already hold pool tokens they will be auto-restaked for you.

Note: This does not apply to Maxi, just the perpetual pool tokens.

What is the stake 'Redemption Rate'?

The stake 'Redemption Rate' refers to the amount of HEX (including the original principal and accrued interest) that a participant receives when redeeming their pool tokens at the end of a stake.

It is essentially the value of one pool token at the time of redemption, expressed in HEX.

i) Calculation of Redemption Rate

The Redemption Rate is calculated based on the total HEX staked, plus the yield generated during the staking period, divided by the total number of pool tokens in circulation.

Redemption Rate = Total HEX (Principal + Yield) / Total Pool Tokens

This simple mechanism allows users to claim their fair share of the HEX principle + Yield at the end of the stake in a trustless way.

ii) Tracking Stake Value

It directly affects the value participants receive when redeeming their pool tokens, making it a critical metric for assessing the performance of the staking pool.

The Redemption Rate can influence the market value of pool tokens on decentralized exchanges, as it reflects the underlying value of each token based on the completed stake.

iii) Usage in Redemption and Reload Phases

During the redemption phase, the Redemption Rate determines the exact amount of HEX each pool token can be redeemed for.

If a reload phase is available, participants can use the redemption rate to decide whether to redeem their HEX or continue participating by minting new pool tokens for the next staking cycle.

Can I trade my pool tokens before the stake ends?

Yes, pool tokens can be traded on decentralized exchanges, providing liquidity and allowing you to exit your position before the stake ends.

The value of pool tokens may fluctuate based on market conditions and the expected value of the stake.

I can't find liquidity for the token I want

Liquidity for these tokens is provided by your peers on DEXs. There is no guarantee that there will be liquidity for you exactly when you want it.

Check here for the most liquidity when buying.

When does Maxi (or any other stake pool) end?

All dates here.

What are the mint & backing discount metrics?

These are explained more in the data quality section of the docs.

Why does a stake token very in price from HEX & it's stake backing so much?

Maximus stake pools have 2 prices:

i) Backing value ii) Market price The Backing Value of the stake tracks what you will receive when the stake ends. The Market Price reflects what you can sell the asset for based on current market conditions (liquidity, supply/demand, etc.)

Is the price fixed to the backing value?

No. The market price of the stake pool tokens may differ significantly from the underlying value of the HEX principle + yield in the stake until redemption.

Am I guaranteed to receive my HEX back when the stake ends?

Maximus stake pools are immutable smart contracts with no admin keys. This allows users to experience a trustless staking experience where the HEX they are guaranteed to receive the HEX they are entitled to at the end of the stake period.

Are there any risks associated with Maximus staking pools?

While Maximus DAO is designed to optimize staking returns and minimize costs, risks include market volatility, changes in HEX yield rates, and an additional layer of smart contract risk in addition to the HEX smart contract. It's important to do your own research and understand the risks before participating.