Etherex
About
Etherex is a concentrated liquidity decentralized exchange built on the Linea network, implementing the x(3,3) metaDEX methodology. The protocol offers swapping, liquidity provision, and yield farming with dynamic fee algorithms and vote-based emission direction. It is designed to align incentives among traders, liquidity providers, and governance participants without requiring forced token lock-ups.
Where Does Yield Come From?
Yield is generated through several connected methods:
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Trading fees: When people swap tokens, they pay a fee that changes automatically (between 0.05% and 5%) based on trading activity and price swings. If a liquidity pool has a gauge system, 100% of these fees go to people who stake xREX tokens. For pools without gauges, 95% goes to liquidity providers and 5% stays with the protocol.
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Vote incentives: External projects can offer extra tokens to attract attention. These rewards are paid in one lump sum to xREX holders who vote, at the end of each voting period.
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Exit rebase: If someone exits their xREX stake early (by exchanging it for REX tokens with a 50% penalty), the tokens they give up are gradually distributed to the remaining xREX stakers. This protects them from dilution and provides extra yield.
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REX token rewards: Each week, xREX voters decide which liquidity pools receive new REX token rewards. People who provide liquidity to those pools earn these rewards steadily over the week.
To earn these rewards, xREX holders must actively stake their tokens and vote during each voting period. If they don’t, they won’t receive fees, vote incentives, or exit rebases.
A special liquid staking token called REX33 automates voting and reward compounding. It sells vote incentive tokens for more REX, which increases the REX33-to-xREX ratio, benefiting holders.
Fee splits can be customized per gauge. For example, a meme coin pool might allocate 80% of fees to xREX stakers, 15% to the token creator, and 5% to liquidity providers.
This creates a self-reinforcing cycle: Pools that generate higher fees attract more REX token rewards, which deepens liquidity, leading to even more fee revenue.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Spearbit26-08-2025 - 14-10-2025 |
| The audit revealed only low-risk and informational issues, with the majority already fixed, indicating a relatively secure codebase post-remediation. No critical or high-severity vulnerabilities were found during the engagement period. |
Cantina24-12-2024 - 28-12-2024 |
| The audit identified one high-risk issue that was fixed, along with several medium and low severity findings, most of which were resolved or acknowledged, indicating a generally secure codebase after remediation. |
Consensys01-07-2024 - 30-09-2024 |
| The audit revealed a critical accounting bug and several major issues, all of which have been addressed or acknowledged by the team. However, due to the system's complexity and insufficient test coverage, thorough testing and fuzzing are strongly recommended before production deployment. |
Code4rena08-10-2024 - 29-10-2024 |
| The audit uncovered two medium‑severity bugs that could distort reward distribution and reduce protocol fee revenue, along with a suite of lower‑risk findings; the team addressed the critical logic errors and reviewed mitigations, leaving the system with residual low‑risk operational concerns. |
Backers
The tokenomics distribution allocates 87,500,000 REX tokens (25% of total supply) to "Linea/Consensys", indicating backing from Linea and Consensys. The protocol's partners page lists Electric Capital and Anthos Capital as partners, though no specific investment rounds, amounts, or dates are disclosed.
Legal
Status and notes
No legal entity or jurisdiction disclosed on official sources. Documentation includes a general risk disclaimer and BUSL-1.1 license for core contracts.