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Polkadot DeFi is about to start, Zenlink's liquidity capture method

PolkaWorld

2021-03-10 11:12 (UTC+8)

本文约2637字，阅读全文需要约11分钟

As a major event in 2021, the progress of the Polkadot parachain auction has entered the warm-up stage. At that time, Zenlink's products will also be launched online for user testing.

As a major event in 2021,Polkadot parachain auctionThe progress has entered the warm-up stage.

Up to now, 11 parachain projects, including system parachains, have successfully connected to the Rococo V1 testnet.Zenlink、Bifrost、ChainX Other projects will also be connected soon. Following the steps of the parachain auction launch, after all approved projects have been connected to the Rococo V1 test network and run stably, the next step is to launch the parachain slot auction on the Kusama Pioneer Network.

For Polkadot, the slot auction is undoubtedly a milestone event, and it is also an important step in the implementation of the application.After the slot auction is launched, it will greatly enrich the landing scenarios of the entire Polkadot ecological application, thus truly opening a new chapter in the Polkadot DeFi ecosystem for users to participate and experience.

At that time, Zenlink's products will also be launched and accepted by users. Before that, we are obliged to popularize to all community members as the leading Polkadot cross-chain DEX protocol, how Zenlink will capture the huge liquidity of the entire Polkadot DeFi ecosystem in the future.

"Plug and unplug" Zenlink DEX Module

For a long time, many new community members have the wrong perception that Polkadot ecological projects that will participate in parachain slot auctions are high-quality projects without sufficient understanding. In fact, not all projects in the Polkadot ecosystem are parachain projects, and there is no need to bid for slots.

Zenlink itself is not a parachain project. Its positioning is to solve the asset circulation problem between parachains. It belongs to the protocol layer/application layer project, so Zenlink will not participate in the parachain slot auction.The access to Rococo V1 this time is just to better test the product in the test network before the product is officially launched.

One of the cores of solving the asset circulation problem between parallel chains lies inZenlink DEX Module, Zenlink DEX Module is aSimple, highly versatile, pluggableDEX module, by integrating this DEX module into each parachain, Zenlink can achieve"Send DEX with one click", so that the parachain quickly has DEX functions, such as Swap, creating transaction peers, etc., and can communicate with other parachainsshared liquidity。

More importantly, Zenlink DEX Module isplug and unplugYes, the parallel chains on the Polkadot network can quickly realize the DEX on the parallel chains by means of integrated modules, whileNo need for repeated development, and can access a wider Zenlink DEX network. As a result, while the tokens on the parachain inject liquidity into Zenlink DEX, they also obtain freer value flow, that is, exchange value with other parachains and DOT.

In the future, after the parachain auction is officially launched, a large number of applications will be built based on different parachains, which also means that liquidity will be dispersed on different parachains.And Zenlink will act as the DEX hub of these liquidity, relying on the deployment of Zenlink DEX Module on different parallel chains, so that all parallel chains can share liquidity, thus breaking the liquidity "island" state, and finally converged into a huge Liquid network.

This also means that the Zenlink DEX network will be able to capture the liquidity of the entire Polkadot ecosystem to the greatest extent, so that users can obtain a fast and low-slip trading experience regardless of which chain they are trading on.

Currently, Zenlink is waiting for access Rococo V1 Testnet for Zenlink DEX ModuleIntegration testing and cross-chain testing. At the same time, it has also established cooperative relationships with high-quality projects such as ChainX, Bifrost, Plasm, Phala, and Darwinia, and will conduct technical joint debugging with these partners in the Rococo V1 environment.

It is worth mentioning that, previously,Bifrost announced on its official Twitter that it has successfully integrated the Zenlink DEX cross-chain module and achieved cross-chain asset transfer between parachains based on the Rococo V1 local test network, and was also retweeted by Polkadot co-founder Gavin Wood.

A Zenlink DEX aggregator that "sees the big picture"

Compared with many other Polkadot-based DEXs, Zenlink is very different in product and technical implementation. Most Polkadot DEXs are built based on their own parachains, while Zenlink directly uses Modules to access the entire Polkadot network, which will make Zenlinkmore flexibleMeanwhile alsomore lightweight。

Each parachain on Polkadot is essentially a collection of completely independent and freely programmable Runtime Modules, which also allows all parachains to be easily integratedZenlink DEX Module based on SubstratecombinationcombinationGet up and form a decentralized cross-chain DEX network. Based on this, Zenlink has a natural advantage in liquidity capture.

In addition, Zenlink will also createZenlink DEX Aggregator(Aggregator) is used to connect all DEXs on Polkadot and DEXs on other chains with one click. At present, there are several DEXs in the Polkadot ecosystem, including Zenlink, Homa (Acala), PolkaSwap, HydraDX, Polkadex, etc.

As we all know, although DEX has greatly surpassed CEX since Uniswap, there are still some defects in DEX transactions. Under the AMM mechanism, when the liquidity provided by LP (liquidity provider) is insufficient, the transaction will cause a large slippage. points, and with the emergence of more and more DEXs, these liquidity is further dispersed. Therefore, in order to solve the problems of high slippage and cumbersome operation, the emergence of DEX aggregators is very popular in the market. 1inch is a typical representative of DEX aggregators on Ethereum.

Similarly, the same problem will arise in the Polkadot ecology in the future. The emergence of multiple DEXs will still split liquidity, so it is very necessary to build a DEX aggregator on Polkadot. Zenlink took this into consideration at the beginning of the project, and put forward the goal of building a Zenlink DEX aggregator in the project white paper.

The Zenlink DEX aggregator is not only a major goal of Zenlink but also an integral part of the future Polkadot DeFi ecosystem.Decentralized protocols, various types of DEX, and separate transaction currencies can all be provided to users through the Zenlink DEX aggregator. Specifically, the Zenlink DEX aggregator will integrate the liquidity and pricing of various DEXs, compare the best prices in different trading agreements, and provide users with the best transactions and the smallest slippage.

On Ethereum, due to the high cost of Gas, DEX aggregators such as 1inch need to take Gas optimization into consideration when designing products. It is often difficult to balance Gas optimization and complex path calculations, which may even cause users to need Pay more Gas. The Zenlink DEX aggregator based on Polkadot does not have to be troubled by this problem, and we can focus more on improving the performance of intelligent routing orders.

In summary, as more and more parallel links enter the Rococo V1 testnet and run stably, the slot auction is close at hand, and the Polkadot DeFi ecological landscape is gradually emerging.As a Polkadot-based cross-chain DEX protocol, Zenlink will be critical to capture the liquidity of the entire Polkadot ecosystem, and the combination of Zenlink DEX Module + Zenlink DEX Aggregator will be able to maximize Zenlink’s capture of liquidity, and then provide users with better transaction depth and lower transaction slippage, and strive to become the preferred Polkadot cross-chain DEX for users.

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Polkadot DeFi is about to start, Zenlink&#39;s liquidity capture method

"Plug and unplug" Zenlink DEX Module

A Zenlink DEX aggregator that "sees the big picture"

Polkadot DeFi is about to start, Zenlink's liquidity capture method