One of the best tools we have in DEXTools and that differentiates us from other projects is the DEXT Score, we have noticed that despite having this tool, unfortunately, many people still fall into the typical scams that we see in DEXes every day and that could be avoided in many cases with a simple review of the DEXT Score and a little research.
Therefore, we would like to shed some light on HOW to use this tool to avoid most of the scams in the DEXes we have integrated at the moment, Uniswap, Sushi and Pancake.
THE DEXT SCORE
The DEXT Score is an algorithm created by DEXTools that measures all the information we get from the blockchain and some external information sources to measure the confidence of a project. The score obtained ranges from 99 (Maximum) to 1 (Minimum).
The parameters measured in the DEXT Score are among others: Social Information, Pair Liquidity, Number of Transactions, Number of Token Holders and Contract Creation.
FOR TEAMS: Social information is obtained from the Etherscan and Bscscan platforms, when it’s updated there it will automatically appear in DEXTools.
Description of the score ranges, (this estimate is approximate and may vary depending on the project).
High DEXT Score (80 or more)
These are the tokens that have a higher probability of being legitimate projects, most will have all or most of the social information in order and a good amount of the other parameters, transactions, holders and liquidity. You should be able to invest and buy and sell without a problem, however, always do your research, as the DEXT Score does not measure the quality of the project.
Average DEXT Score (from 50 to 80)
These are usually tokens that fail in some of the parameters described above, they may lack social information, have a low creation score or low liquidity, it is up to you to investigate why, in some cases they are new projects that have not had time to update and in others they are simply more elaborate scams.
Some scams can have up to 200 ETH of liquidity, but still scams.
Low DEXT Score (Less than 50)
A token with a score of less than 50 is usually a new token on the market that fails in many of the parameters described above. This is where the gems and scams are usually found in equal parts, many of the projects that end up with a higher score start here. There are many opportunities in low Score, but invest only if you are willing to take a very high risk.
TIP: Check always the tx history to see if there are sales, if you only see buys, it’s very likely that is a scam and you won’t be able to sell after buying.
Minimum DEXT Score ( Less than 10)
The projects with a score of 1, are in 99% of the cases scams, and lack all the parameters described above, usually have little or no liquidity, in many cases have already made a rug pull, and have no social information, a quality contract or transactions. Please avoid investing in this type of projects or you will lose all your money in a very high percentage of cases.
THE SCORE IS DYNAMIC
Now that we have described the scoring system and the main cases of scores that a project can receive, we must add the characteristic of dynamism. The Score score tends to adapt very quickly to market conditions, and in those quality projects that have all the information updated, it usually reaches a consolidated score in the first 24 hours after listing.
In those cases where information is missing, it will be updated as soon as the information is available.
The opposite case may also occur, projects that previously had a good score and usually due to TEAM actions (Teams selling, Rug Pulls in large projects) may lower their score, even going from 99 to 1 in case of scam. The Score cannot predict the future, that’s why it is always DYOR.
After this little explanation, we hope that your trading with DEXTools will be much safer.
If you have more questions or info you can reach us in our Telegram group: