$WRX Entering Into DeFi
India’s Largest CryptoCurrency Exchange is going to enter into Decentralized Finance (DeFi) Sector with it’s own $WRX Token.
There are two major things that are scheduled.
1.WazirX is launching an Automated Market Maker (AMM) Protocol
2.We’re partnering with Matic Network to launch the Protocol
What is Matic Network?
Matic Network is a Layer 2 scaling solution that achieves scale by utilizing sidechains for off-chain computation while ensuring asset security using the Plasma framework and a decentralized network of Proof-of-Stake (PoS) validators.
What is Amm Protocol?
In AMM Protocol instead of using a traditional buy/sell order book, both sides of trades are pre-funded by on-chain liquidity pools. Liquidity pools allow users to seamlessly switch between tokens on-chain in a completely decentralized and non-custodial manner. Liquidity providers earn passive income via trading fees based on the percentage of their contribution to the pool.
Benefits of AMM :
- No Order For Buy/Sell.
- Liquidity is provided by Users.
- Fully Decentralized.
- Users earn part of fees for providing liquidity.
Examples of AMM :
What $WRX will be used for?
WRX will play a vital role in DeFi. It will be used as a governance token to power power the network.
Benefits for WRX Holders :
- Major WazirX AMM Protocol decision like new features, fees, etc will be determined by WRX Holders.
Why Matic Network?
Matic’s Ethereum Layer2 provides high level security and decentralisation while providing high scalability and throughput.
Current high gas costs on Ethereum make it unviable for any meaningful DEX to be used by large scale userbase. Matic offers low cost gas fees, their reddit POC showed 3 Million transactions at a cost of mere $4. The sidechains have also shown throughput of 7200 TPS which is very promising for the scale WazirX wants to achieve with its AMM based DEX.
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Information Sources :