See the development history of EOS DeFi through Defibox
Editor's Note: This article comes fromAhua Blockchain (ID: ahua-blockchain), reprinted by Odaily with authorization.
Editor's Note: This article comes from
, reprinted by Odaily with authorization.
In this year's cryptocurrency market, DeFi is undoubtedly one of the biggest hotspots. Compound issued the governance token COMP and opened the loan mining mode, which completely detonated the DeFi market. Flash transaction mining and market making have become encrypted A new way of managing money for currency holders.
Driven by popular projects such as Compound, the lock-up volume of DeFi projects has skyrocketed, and the tokens of DeFi projects have skyrocketed. Of course, the popularity of DeFi has also spread from Ethereum to public chains such as EOS and TRON.
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1. What is DeFi
The full name of DeFi is Decentralized Finance, that is, decentralized finance or distributed finance.
Decentralized finance is the opposite of traditional centralized finance. It refers to the application of various financial fields based on blockchain technology and encryption technology and established in an open decentralized network. The goal of decentralized finance is to recreate and improve the existing financial system. Blockchain + finance, this is also most people's understanding of DeFi.
To understand DeFi, we can compare it with centralized finance, and refer to the summary of Mr. Cai Kailong.
There are many functions in centralized finance. for example:
(1) Legal affairs, compliance, KYC, AML, accountants, law firms;
(2) Exchanges, China Securities Regulatory Commission, and China Banking Regulatory Commission supervise exchanges. What the exchange and the China Securities Regulatory Commission do is to match transactions and review transactions, settlement and supervision;
(3) Banks and securities firms. Do custody, payment, lending;
(4) The central bank, which provides currency.
1) For example, the central bank may not be used in DeFi, because it has its own digital currency, and Bitcoin, Ethereum, EOS, USDT, and USDC can all be used as the underlying means of payment;
2) Defi has smart contracts. In Ethereum, code is law. So we don't need legal affairs and judges, as long as there is a smart contract, we can judge which contract can be executed; we don't need a contract, we only need to write the smart contract, and it will be automatically executed when it expires, without contract disputes; because it is established in the district On the block chain, the contract will not be tampered with, and the contract does not need to be kept in a notary office or a safe; all transactions can be traced, transparent and fair; DeFi is inherently borderless and deintermediary.
These characteristics of DeFi can make up for the shortcomings of centralized finance. For example, it is difficult for centralized finance to be inclusive. Its transaction costs are very high, the transaction is complicated, and the speed is slow. Moreover, there are intermediaries such as banks, exchanges, brokers, accountants, and lawyers, and they all charge service fees.
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2. The Inevitability of DeFi Explosion
Why is DeFi breaking out? In fact, there is a certain inevitability.
In essence, DeFi is nothing more than the exchange between digital currencies, mortgage lending, circulation, etc. It is based on the variety and liquidity of tokens.
Why do users want to exchange between tokens and mortgage loans? In fact, it is mainly due to the needs of financial management. Traditional financial products can be used for financial management. Of course, digital currency can also be used for financial management, and the rate of return is not low, especially in a bear market. It is a big need to use the existing digital currency in your hand to conduct financial management.
When more and more people use digital currency for financial management, transactions such as flash swaps and mortgage loans between tokens will become more frequent, coupled with the continuous improvement of the DeFi infrastructure on Ethereum, the combination of the two It will inevitably lead to the outbreak of DeFi.
In fact, DeFi on ETH started in the last wave of bull market, and now the star DeFi projects on Ethereum have been laid out since then, and the funds required for the development of some projects were raised during the last wave of ICO , after two or three years of hard work in the bear market, DeFi finally broke out first on ETH.
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3. What are the main DeFi protocols currently on the market?
In order to better understand DeFi, we roughly classify the main DeFi protocols currently on the market:
1. Flash swap
As the name suggests, flash exchange means lightning exchange. It is different from the order matching mode of traditional exchanges. There are buyers and sellers in the matching mode. The exchange actually acts as an intermediary, which matches the orders of buyers and sellers.
Flash swap is a man-machine transaction based on a liquidity pool. The counterparty of flash swap is not another user, but a pool of funds. Therefore, flash swap is equivalent to a human-machine transaction.
Since Flash Exchange is a man-machine transaction based on a fund pool, its transaction depth can be understood as unlimited. As long as you trade, the fund pool will correspond to a price, and the transaction can be completed quickly.
In flash exchange, users can also earn income by providing liquidity for the instant exchange fund pool.
2. Mint stable coins
Many current DeFi products, especially EOS DeFi products, have the function of minting stable coins. For example, there is stable currency USDE in PIZZA, stable currency USN in Defibox, etc.
The principle of minting stable coins is actually the process of over-collateralizing the basic digital currency and then minting stable coins. For example, the process of minting USN on Defibox is the process of mortgaging EOS to generate USN. Since the price of digital currency fluctuates too much, in order to ensure sufficient value of collateral, it is generally necessary to over-collateralize.
3. Mortgage loan
The process of mortgaging and lending is actually similar to the process of minting stablecoins, except that the underlying objects generated after staking are different. For example, EOS can be mortgaged to borrow USDT.
Mortgage lending is also a major business of EOS DeFi. For example, PIZZA has a mortgage lending function, and the market does have demand for digital currency mortgage lending. By borrowing, you can make full use of the existing digital currency in your hand to maximize your income.
When we carry out mortgage lending, we must pay attention to setting a reasonable mortgage rate to avoid liquidation.
A synthetic asset is a financial instrument that mimics other instruments. In other words, the risk/return profile of any financial instrument can be simulated by a combination of other financial instruments.
Synthetix on Ethereum is for synthetic assets, and it is the leader in the field of synthetic assets. Cryptocurrency assets such as BTC and ETH can be synthesized through Synthetix. Of course, off-chain assets such as gold and stocks can also be synthesized. Users can purchase these synthetic assets to enjoy the benefits generated by the fluctuation of the original assets.
In addition to Synthetix, Organix on the EOS chain is also a synthetic asset. According to the suitable scope of the synthetic asset agreement, the synthetic asset has unlimited imagination.
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4. The development and changes of DeFi
The popularity of DeFi started from ETH. The reason why DeFi started to explode from ETH is mainly due to the following reasons.
First of all, the ETH ecological infrastructure is relatively complete. After all, the ETH public chain is the pioneer of smart contracts, and the ecological development time of the Ethereum public chain is longer than that of other public chains. Of course, the layout of ETH DeFi is also relatively early. Many ETH DeFi was born. It is earlier than other public chain mainnets.
Secondly, a large number of excellent developers have gathered in the Ethereum developer community, and the Ethereum Foundation has also given great support to excellent projects, including not only technical support, but also a large amount of financial support. More support can be found in the workshop.
Finally, among all the public chains, the tokens issued on the ETH public chain are the most. As we mentioned earlier, DeFi is nothing more than the exchange, mortgage, circulation, etc. between tokens. The ETH public chain has the most types of tokens And the liquidity is also the best, so the demand for transactions between ETH tokens is the greatest.
Under the influence of the above factors, DeFi finally broke out on the ETH public chain. However, the performance of the ETH public chain is flawed. Its scalability has always been an important factor restricting the ecological development of ETH. For example, the transaction confirmation speed is slow, the network is often congested, and the transfer transaction initiated in the morning may not arrive in the afternoon. Moreover, its gas fee is very high. In many ETH DeFi, the transaction fee is sometimes as high as tens or hundreds of dollars, which discourages many new DeFi users.
It is precisely because of the many disadvantages of the ETH public chain, and most of the ETH DeFi projects are developed by foreign teams, the user interface is not very friendly to our people, which just gives other public chains a good opportunity to develop DeFi, ETH DeFi Some of the users and funds in the blockchain have begun to spill over to other public chains, including EOS and TRON.
Among the three major public chains, ETH is the leader of DeFi, while TRON and EOS are the chasers. At present, EOS DeFi and TRON DeFi have reached a certain scale.
The development strategies of TRON DeFi and EOS DeFi are also different. For TRON DeFi, it is promoted from top to bottom. Many influential TRON DeFi are directly promoted by TRON officials and even Boss Sun himself. The official support is relatively strong. With the support of the boss, the development of TRON DeFi in the ecology will be smoother.
If ETH is the first echelon of DeFi, then EOS and TRON are the second echelon. In addition to these three public chains, IOST, ADA and other public chains are also deploying DeFi. At present, basically all public chains are actively deploying DeFi track.
Not only the public chain is actively deploying DeFi, but exchanges and large capitals have also invested in the wave of DeFi. DeFi has fully blossomed. For example, the three major exchanges have also begun to take action in DeFi recently. DeFi has grown from a niche industry increasingly mainstream.
However, what DeFi is still facing is a sea of stars, and everything is just beginning.
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5. The development history of EOS DeFi
Earlier we reviewed the development and changes of DeFi, now let’s talk about the development of EOS DeFi.
EOSDT, VIGOR and PIZZA were the earliest projects to deploy EOS DeFi, the first two of which were developed by foreign teams. EOSDT and VIGOR are relatively well-known in foreign EOS communities. For example, VIGOR often appears in BB's Twitter information. PIZZA was developed by a Chinese team.
In addition, there is also Chintai, an early EOS DeFi project, which started from EOS resource leasing. It started earlier than EOS REX. At present, Chintai's business scope is already very wide.
However, most of these early EOS DeFi projects did not have much influence, and it may be related to the timing of their emergence, and there is little publicity from the project side.
The outbreak of EOS DeFi started from Dafengshou Defis-network and Dabao Defibox. These two projects have been launched not long ago, and it has only been more than a month since they were launched. And they are all developed by a Chinese team. The interface is practical and simple, and the user experience is amazing. At least in terms of user experience, it crushes many ETH DeFi projects.
Dabao and Dafengshou have only launched the functions of flash exchange and stable coin casting, and mortgage lending and synthetic assets have not yet been launched. The development speed of the two projects is very fast, especially Dabao Defibox, which is almost at an astonishing speed. Develop Defibox's liquidity pool funds to a market value of 10 million EOS locked positions.
In fact, in addition to the above EOS DeFi, there are many built-in DeFi products in the EOS ecosystem itself. Such as RAM, REX, etc., the consciousness of BM is indeed advanced sometimes.
RAM is the storage resource of EOS. EOS RAM resources need to be purchased through EOS, and the price of RAM resources is also priced according to the ratio of EOS in the RAM fund pool to the amount of RAM funds, mainly using the Bancor algorithm. RAM was once hyped when it was first launched, and then a mild expansion method was adopted to solve the problem of excessive fluctuations in RAM prices.
REX is the CPU/NET resource leasing system of EOS, which gathers the idle EOS resources in the hands of users and provides them to those who demand those resources. EOS holders can transfer temporarily idle EOS to the REX fund pool to earn resource leasing income, while demanders of EOS resources can lease the required CPU/NET resources at a lower cost in the REX market. The pricing of CPU/NET in REX also adopts the Bancor algorithm, and the EOS REX system solves the supply and demand problem of EOS CPU/NET resources very well.
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6. The impact of EOS DeFi on the development of EOS ecology
The goal of EOS is to realize the large-scale application of blockchain technology. Since the main network was launched in June 2018, the EOS ecosystem has gone through more than two years. EOS, like other public chains, has been exploring its own path.
1. DeFi is an important development direction of the EOS public chain
After the EOS mainnet was launched in June 2018, gambling DAPPs were once very popular on EOS, and even gave birth to the EOS resource rental market and later the EOS REX system. However, spinach DAPPs are always too marginal applications, and it is difficult to go mainstream.
Then, more and more blockchain games are built on the EOS public chain. After all, the performance of the EOS public chain is the highest. Not only does the transfer have no handling fee, but it can also achieve second-level confirmation speed, which has relatively high real-time requirements Blockchain games can only be built on the EOS public chain. But at present, the scale of blockchain games on the EOS public chain is still relatively small.
The EOS public chain is also actively deploying the social track. For example, the social application Voice launched by Block.one is currently in the public beta period, and the official version will be launched in the first quarter of next year.
Whether it is gambling, games, or even social applications, the exploration of the EOS public chain continues. Until the outbreak of Ethereum DeFi in 2020, the EOS public chain seems to see a more suitable path, that is, decentralized financial DeFi .
Therefore, DeFi has found a more suitable direction for EOS. It has a broader development prospect. EOS can play a greater advantage in the DeFi track, and compared with gambling applications, DeFi will become more and more mainstream. circle crowd.
2. DeFi promotes the additional issuance of EOS version USDT
With the efforts of EOS DeFi projects led by projects such as Dabao, Dafengshou, and Diamond, it has also forced multiple additional issuances of the EOS version of USDT. At present, there are more than 90 million EOS versions of USDT. Most of these EOS versions of USDT are It has flowed into the EOS+USDT fund pool of Defibox and Defis-network. It is believed that Tether will continue to issue EOS-USDT in a few days.
In addition to the EOS DeFi project absorbing USDT, more and more second-tier exchanges have begun to support the EOS version of USDT, such as matcha, gate, etc. I believe that the three major exchanges will also support EOS-USDT in a short time.
When the circulation of EOS-USDT is increasing, it is conducive to the circulation of tokens in the EOS ecology and can promote the development of the EOS ecology.
3. Grab the pricing power of EOS
With the continuous development of the EOS DeFi project, the impact and impact on the centralized exchange is also relatively large. The EOS DeFi project referred to here is mainly the SWAP function of the DeFi branch, which is the DEX based on the capital pool.
EOS DEX based on human-machine transactions of capital pools, such as Defibox, is based on smart contracts, and all operations take place on the chain, which is open and transparent. All transaction data can be queried on the chain, using the AMM mechanism, which can It is understood as unlimited trading depth, and there is no waiting time for matching.
Moreover, based on the EOS DEX of the human-machine trading of the fund pool, users can not only conduct flash transactions, but also obtain income by providing liquidity for the fund pool, which is commonly referred to as a market maker.
As Defibox's swap pool grows larger, it will become increasingly difficult for centralized exchanges to manipulate prices. If the exchange pins, there will be arbitrageurs immediately arbitrage between the centralized exchange and the DEX based on the capital pool, so as to smooth out the price difference between the two,
For example, when there was a sharp drop on the night of September 2, a large number of users appeared to buy EOS on Huobi, and then went to Defibox to sell EOS for arbitrage, which stabilized the normal liquidity to a certain extent. The price of EOS will become more and more market-oriented, and the phenomenon of centralized exchanges operating in the dark will become less and less.
As Super Jun mentioned, the DEX based on the AMM mechanism seems to be regaining the transaction pricing power by virtue of its deep liquidity.
secondary titlehttps://defibox.io7. Why the number of addresses held by Defibox token BOX ranks first among EOS DeFi projects
Let’s first briefly introduce the introduction of Defibox:
According to the white paper: Defibox (
) is a professional one-stop DeFi application platform on EOS, initiated and managed by the Defibox Foundation, and funded and supported by Newdex. The project was launched on July 21, 2020, and is committed to becoming the most widely used DeFi application platform for EOS users. At present, Defibox has launched two protocols, namely Swap and USN stable currency (formerly Danchor project), and will launch more protocols in the future, such as: decentralized lending, synthetic assets, etc.
An important indicator to measure the development of a DeFi project is TVL, or Total Value Locked. At present, the locked amount of Defibox's SWAP fund pool has reached a market value of more than 10 million EOS. Moreover, the number of addresses held by the token BOX has reached 11,835, which is the largest number of addresses held by all EOS Defi platform coins. Defibox is already an excellent DeFi project in the entire DeFi track.
The development speed of Defibox is very fast, and it has reached such a height in just over a month, and the amount of locked positions in the fund pool is still growing. There are also reasons behind this achievement in such a short period of time. Let's briefly sort it out below.
1. Behind it is Newdex, which continues to cultivate the EOS ecology
Defibox is a DeFi project funded and promoted by Newdex, and Newdex has been deeply involved in the EOS ecosystem for a long time. It started from the EOS decentralized exchange and developed together with the EOS mainnet.
Many tracks in the EOS ecology Newdex have layouts:
1) Newdex has established the EOS mining pool Newpool. Users do not need to transfer EOS to the Newpool mining pool account. They only need to entrust the EOS voting rights to the Newpool proxy voting account. EOS is always in their own wallets. For users In other words, the security of EOS funds is guaranteed, and voting for the Newpool mining pool will still be profitable, with daily settlement.
2) With the blessing of the Newpool mining pool, Newdex has also become a super node of the EOS main network, and most of the node revenue is distributed to users who voted for the Newdex node.
3) Newdex is the most decentralized EOS decentralized exchange. It does not need to be registered. It can be traded by using the wallet connection. After the transaction is completed, the corresponding Token will be automatically transferred to the user's EOS wallet, and the user's currency is not in the transaction. It is hosted, and the matching of orders is also carried out on the EOS chain.
Newdex has developed the concept of decentralization to the extreme. It is the EOS decentralized exchange with the highest degree of decentralization and the smoothest experience.
It is precisely because Newdex has continued to cultivate the EOS ecology, so Newdex is still very familiar with the EOS ecology, and has also accumulated a large amount of ecological resources, which must have a great resource advantage for Newdex to start a new EOS project. It is against this background that Defibox emerged.
For Defibox, it has the blessing and endorsement of Newdex from the very beginning, which of course has a great resource advantage. The brand effect accumulated by Newdex for a long time can add points to the Defibox platform. It can be said that compared with other projects, It can be said that Defibox won at the starting line from the beginning.
2. The time for Defibox to cut in is good
The popularity of DeFi started from Ethereum, but the performance of the ETH public chain is insufficient, the network is often congested, and the gas fee is very high. The threshold for many users to participate in ETH DeFi is too high, which inevitably leads to the overflow of some users and funds to other On the public chain, the EOS public chain is one of the beneficiaries.
Compared with ETH, EOS transfers are free and transactions are confirmed in seconds, which is an excellent soil suitable for the development of DeFi.
However, the EOS public chain is relatively late in the deployment of the DeFi track, and there are still relatively few EOS DeFi projects. Even the EOS DeFi projects that were deployed in the early stage basically do not have much influence and cannot afford to be the leader of EOS DeFi. At this time, Defibox appeared and developed very rapidly. It took more than a month to reach the EOS DeFi project that ranked first in the number of token holding addresses.
In short, Defibox not only catches some users overflowed by ETH DeFi due to performance reasons, but also attracts existing users in the EOS ecosystem.
3. Defibox operates well
Although Defibox has received strong support from Newdex, and the timing of the cut-in is good, occupying the first-mover advantage, but if the Defibox team does not operate well, it will not be able to do it, and of course there will be no achievements today. The success of Defibox is inseparable from the operation of the team.
1) The interface is simple and practical
The interface of Defibox is simple and practical, and the experience is very smooth. If you compare ETH DeFi products on the market, experience ETH DeFi and then come to experience Defibox, the feeling will be very different. If ETH DeFi is Nokia, then Defibox is the representative EOS DeFi is the iPhone.
Defibox has inherited the style of Newdex. Newdex has basically been cultivating since the launch of the EOS mainnet. It is not radical, one step at a time, and each step is very solid. Like Newdex, Defibox is step-by-step and not radical."EOS+USDT"and"EOS+KEY"When Defibox was first launched, it did not start flash trading mining. It was market maker mining first. When the transaction depth became stronger, flash trading mining was started. To a certain extent, it also reflects the Defibox I plan to continue to cultivate and position a long-term style.
Moreover, when strengthening the depth of trading, it is basically a targeted strategy of only doing one trading pair at a time. When one trading pair is strengthened, it is targeted to do the next one. Currently, the capital pool of Defibox
and
It has become the fund pool with the best trading depth in the market.
In order to promote the stability of USN prices, the foundation has launched proposals to adjust the annualized fee rate many times, so as to achieve an optimal annualized fee rate value.
In short, the Defibox team is still doing things relatively steadily, taking one step at a time and running in small steps.
3) BOX mortgage
Defibox has also opened the BOX mortgage dividend function. Mortgage BOX can participate in income dividends, which are settled every hour. BOX mortgage is equivalent to holding currency to earn interest. As long as BOX is mortgaged in Defibox, you can receive income. It is also a financial management method for holding BOX.
4) Decentralized governance BOX DAO
In order to practice decentralized governance, Defibox has also set up a decentralized autonomous community BOX DAO, which is mainly composed of Defibox token BOX holders. Through proposals and voting governance, it maintains project operation and promotes project development. The ultimate goal of the development of BOX DAO is to dissolve the Defibox Foundation and achieve a more thorough decentralized autonomy.
Before voting, you need to mortgage BOX first, which is similar to EOS node voting. Mortgage BOX can get governance votes, 1BOX=1 vote, the more BOX you hold, of course, the more governance votes you will get. Unlike EOS, it takes 3 days to unstake EOS, but it only takes 1 day to unstake BOX.
As long as users hold BOX and stake it, they can participate in governance by participating in proposal voting. Currently, Defibox has initiated 12 proposals.
4. Defibox Security Policy
For DeFi, the security of the contract account is basically the most important. It affects the amount of funds in the liquidity pool. If the security is not guaranteed, users dare not deposit funds.
Recently, in EOS DeFi, we have also seen the emerald project run away, and the coral contract has loopholes, etc., which have had a great impact on EOS DeFi. Security is the cornerstone of EOS DeFi. In fact, certain security precautions can be avoided. Many unnecessary losses.
In order to ensure the security of funds in the contract account, Defibox has done a lot of work in terms of security, which can be regarded as the industry benchmark.
1) Security Audit
The essence of a smart contract is a piece of code running in the blockchain network, which fulfills the functional requirements submitted by users. However, programs written by humans will inevitably have loopholes and defects. Through a comprehensive inspection of the smart contract, the security audit company reviews the potential security risks of the contract and provides improvement plans to ensure the security of the smart contract code of the online project.
Defibox's smart contract has passed the security audits of the well-known blockchain security companies Paidun and SlowMist, providing an important guarantee for the security of the code.
Moreover, every time the contract code is updated, Defibox will release the version after the security audit of Paidun and SlowMist in advance to ensure the security of the code.
Defibox is escorted by a professional security company at the code level, which increases the trust of users, and Defibox's liquidity pool continues to grow.
2) The contract account opens the multi-signature function"1+3"For Defibox, the assets in the flash exchange fund pool are stored in the swap.defi account, which stores the assets of users for market making. The USN stablecoin smart contract account of Defibox is danchorsmart, which stores the EOS assets mortgaged by users to generate stablecoin USN.
The private keys of these two EOS accounts are kept by the Defibox project party. If the project party transfers the assets inside and runs away, users basically have no way to recover them. In order to eliminate the worries of users, Defibox has also enabled the multi-signature function for the above two accounts, which means that when the code of the contract account changes or the project party wants to transfer the assets inside, Defibox cannot unilaterally complete it, it needs other The nodes participating in the signature must sign together to execute the relevant transaction.
As can be seen from the above figure, Defibox multi-signature adopts
mode, that is, whether it is to change the code or transfer the assets in the contract, Defibox cannot complete it alone, because the weight of the defibox account used for signing is only 20, which cannot reach the threshold of 23. If you want to perform related operations, you need Defibox and Defibox It is only valid if any other 3 nodes sign at the same time.
Among the nodes participating in Defibox's multi-signature, there are EOS super nodes, security companies, and well-known wallets. Through multi-signature, the decentralized management of core assets is realized, and the user's assets are more secure.
3) Bounty Program
According to Defibox, the bounty program is a useful attempt to encourage "ethical hackers" to actively participate in the ecological construction of the project. Through the release of the "Bounty Program", "problems" or "defects" are found in the way of pre-rewards, thereby strengthening early warning and project security. If you submit a contract security vulnerability affecting Defibox, and keep such vulnerability confidential until our engineers solve the vulnerability, you will be rewarded with the corresponding vulnerability level.
4) Code open source
According to the official statement of the Defibox project, the Defibox Foundation is already planning to fully open source the contract code.
In the future, the contract code will be audited by the security company and the account multi-signature function will be enabled, which will become a standard configuration of an EOS DeFi project. Some project parties will also open source the code and launch a bounty program to improve the security of the contract account .
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8. 14 Suggestions for Defibox
Based on my own experience, I dare to offer some suggestions. Of course, due to my limited level, some suggestions may be just an idea, and I don’t know how to implement them. I try to put forward some useful ideas from the user’s point of view. I hope it can be used as a reference for the project side.
1. Single currency market making
It is recommended to enable single-currency market making, which can facilitate users to make markets and lower the threshold for market making.
For example, a user only has one currency, EOS, but wants to use the EOS in his hand to make a market to earn income. Defibox can replace half of the EOS with the currency specified by the user, such as USDT, so that EOS + can be activated. The USDT trading pair is making market to earn profits. If you want to quit the market making, you can exchange USDT back to EOS according to the user's needs.
Whether it is single currency market making or exit market making, I hope it can be completed with one click, the simpler the better. For example, you can start with the USDT/USN stable currency.
2. Solve impermanent loss
The impermanent loss has always been an important factor affecting the user's market-making rate of return, and it has also affected the size of the liquidity pool of the DeFi project party. If the problem of impermanence loss can be solved, the number of users will increase greatly, and the liquidity pool of the project party will also become larger and larger.
At present, some projects in the ETH DeFi ecosystem have solved the problem of impermanent loss, such as Bancor V2.
Bancor V2 broke the traditional AMM and introduced the oracle machine to feed the price of AMM. From then on, the value of the tokens on both sides of the AMM does not have to be equal. V2 uses the oracle machine to feed the price to adjust the weights on both sides of the token, that is, the number of A tokens * A price does not have to be equal to the number of B tokens * B price, and the arbitrage opportunity is smoothed out by the oracle.
Defibox can learn from the idea of Bancor V2 to try to solve the problem of impermanent loss.
3. Pending orders automatically complete transactions
In centralized exchanges or DEXs based on order matching mechanisms, users can either choose to trade immediately at the market price, or choose pending orders to trade at a specified price.
In the DEX based on the AMM (automatic market maker) mechanism, users cannot choose the transaction price by themselves, or even know the current price, and the prices of different transaction volumes are different. For users, It is basically passive. Can Defibox develop a function similar to automatic pending order transactions, so that users can specify the transaction price? It can be used as a supplement to flash exchange transactions, which is convenient for users to control costs.
For example, for EOS/USDT flash swap, the user can place an order at a price of 3.2 USDT, and when the corresponding trading pair in the fund pool meets this price, the transaction will be executed automatically (of course, the user needs to choose a price floating range). In this way, for those friends who do short-term arbitrage, they don't have to watch the price on Defibox all the time, and the transaction will be done automatically after reaching the price specified by them.
4. Display currency exchange price K-line chart
It is recommended to display the K-line chart of the historical price of the currency on the flash exchange.
For example, for the EOS/USDT trading pair, you can display the historical K-line chart of EOS denominated in the stable currency USDT, so that when performing the exchange operation, you can use the historical price as one of the reference factors, which is convenient for users to make decisions, and there is no historical price as a reference factor. For reference, I always feel that I have bought high or sold low.
5. Defibox matches users to make orders and make markets
When we are a market maker in Defibox, we generally need to deposit two digital assets in a certain proportion. If there is no corresponding two types of tokens in hand, market making cannot be carried out. Can Defibox consider matching assets in the hands of different users to complete the market making of single orders? It can be considered to introduce the order matching function in e-commerce into DEX, so that the threshold of market making can be lowered.
For example, user A has EOS assets in his hands, and user B has USDT assets in his hands, so can Defibox match users A and B to make the market? In this way, the coins in the hands of different people can be matched to make the market, thereby strengthening the transaction depth of the Defibox capital pool. Of course, how to distribute profits or bear losses between user A and user B can be further discussed in detail.
6. Cross-chain exchange and market making
Due to the limitation of EOS ecological development, there are not many types of tokens on the EOS public chain, and the liquidity is not good, so before Defibox introduces the synthetic asset protocol, can we consider using a cross-chain method to integrate BTC, ETH, etc. These high-quality assets with relatively large trading volume are mapped to the EOS chain, and then the corresponding flash transactions are opened in Defibox. The benefits of doing this are:
Firstly, it can expand the transaction volume of Defibox; secondly, it is also convenient for users to exchange assets on different chains, such as the exchange between EOS and ETH; Market making of assets, such as using EOS/ETH (here ETH refers to ETH on the EOS chain) to make a market to earn income and activate assets on different chains in the hands of users.
7. Open the financial management section
It is recommended that Defibox open the wealth management section. Users can receive interest even if they deposit a single currency. For this part of assets, Defibox can be used to make markets or match different users to make markets. It can also be used to vote for EOS nodes, etc.
At present, there is a BOX mortgage function on Defibox. In addition to BOX, whether it is possible to consider opening more asset management functions.
8. Display currency RMB price
Since we are used to the exchange currency being displayed in RMB prices, users are more sensitive to the RMB price of the currency. It is recommended that the RMB price of the currency can also be displayed in the flash exchange.
For example, in the EOS/USDT exchange interface shown above, the real-time RMB price of EOS can be displayed to facilitate transactions for users.
9. Introduction to online currencies
For the currencies listed in Defibox, the currency introduction can be displayed.
For example, in the screenshot above, it can be set to: when the mouse is clicked, a brief introduction of the currency is displayed, such as its contract account and other information. This is mainly to prevent fake tokens."X"10. The notifications displayed in Defibox should be displayed in this app as much as possible
For the notifications in Defibox, try to complete the display in this application instead of letting it jump to the notification interface of Newdex, which can be displayed in the form of BOX DAO.
If Defibox is set up like this now, when you click on the corresponding notification, you will jump to the notification interface of Newdex. Not only will it be slow to open Newdex, but you will often accidentally click on it when you exit the notification page after reading the notification.
The interface closes the entire application, and Defibox needs to be reopened to perform subsequent related operations.
11. Contract account (anti-counterfeit token)
For how to judge the authenticity of tokens, the most important criterion for judging is the contract account. Therefore, whether the contract account under the Defibox currency can be bolded or displayed in red to remind users.
12. Enable EOS resource payment
As the EOS ecology becomes more and more active, the daily transaction volume increases, and the corresponding resource costs become more and more expensive. This is a threshold for some new users to use EOS resources.
It is recommended that Defibox enable the EOS resource payment function for users, or refer to the function of Newdex, the first 10 times can use free resources for free, which can facilitate users to conduct flash transactions.
13. Display flash transaction records
