DeFiChain project launches DEX and liquidity mining today
By Inkarias - 2020-11-30
In recent months, DeFi projects have taken a large place or even first place in terms of volumes placed in staking/farming or even traded on the various platforms to provide liquidity. The DeFiChain project, meanwhile, has worked on launching a new project within its ecosystem scheduled for today: the launch of DeFiChain DEX and Liquidity Mining. This novelty is a definite innovation because it is historically the first decentralized exchange to be built on top of the Bitcoin protocol.
DeFiChain DEX and its advantages for the community
Like any decentralized exchange, that of the DeFiChain project will be no exception and will continue to guarantee complete anonymity for those wishing to do so by not requesting the passage of the KYC procedure needed on many other exchanges. The code is completely open-source, non-turing-complete and fully built on Bitcoin code protocol, ensuring a sufficient degree of quality and safety for the different users. In addition, the exchange works on the principle of liquidity pools that we presented in a previous article and which allow both optimal decentralization by this model but also a simple and intuitive way to generate passive income. Thanks to the decentralization of the system and unlike CEXs, DEXs like that of DeFiChain do not have a central entity to control day-to-day operations and are therefore not able to control listing of tokens. This is both a good point for a wide accessibility but also a point of failure allowing scammers to issue fake tokens like on Uniswap. Likewise, the entire solution offered is censorship-resistant and offers many benefits for the investors.
By mining liquidity, DFI investors can enjoy a 300% APY reward by helping the project to grow overtime and take advantage of long-term valuation of the projects. However, it is important to keep in mind that the liquidity provision is not without risk and that a potential flaw in a smart contract or the incessant volatility with IL (impermanent loss) can be a source of a strong change in the value of the assets originally deposited.
All the details about the launch can be read at https://defichain.com/