Shaping a new DeFi era on Elrond,MultiversX
In Oct 2022, AshSwap was selected to become the 4th project to be launched on Maiar Launchpad. Our launch was very successful with a significant result, and after that, at the beginning of November, Ashswap flew from Asia to Europe to join the Elrond X Day event in the heart of Paris as a Gold Sponsor.
First of all, the most significant milestone we need to remember is that Elrond is now MultiversX — a new name, a new branding, a new beginning, a new vision; and Ashswap is proud to be a part of that new journey.
1/ X Day Paris was electrifying.
— Beniamin Mincu | MultiversX.com 🔥 (@beniaminmincu) November 10, 2022
It was fresh, and memorable.
The emotion, the people, the progress.
So, now -- what is #MultiversX ?
And why is it -- perhaps -- remarkable, as an evolution to @ElrondNetwork ?
A thread. On blockchain, Web3, the Metaverse 🧵 pic.twitter.com/NzbUV9I8P7
Our CEO, Neil Nguyen, took the stage to tell the world about the journey of Ashswap, how we chose to build a DeFi Dapp, how we chose MultiversX, and how we were able to come here — X Day Event — with many other projects in the MultiversX blockchain.
Read below to learn more about what we brought to X Day.
Today, about 2 billion people have no access to formal financial services. That’s no access at all. We need a better system where all transactions are open, free, and transparent, where an average person can exchange his money anywhere at a low cost. People would not be denied access simply because of where they were born.
Buying into the vision of a free, permissionless, and decentralized economy, we at AshSwap set out to build a DeFi product.
Then the question arose, where to build?
To turn that vision into reality, we need infrastructure that is Secure, Scalable, and Decentralized.
When choosing a blockchain on which to build AshSwap, we looked for those exact criteria, and MultiversX appears to meet all of them. You have a sharded proof-of-stake blockchain with fast transaction finality and cheap fees. The decentralization aspect is ensured with the current number of nodes being 3,200.
Those are the prerequisites, we need more.
Right now, one of the biggest challenges of DeFi, in my opinion, is ADOPTION. This means DeFi is still a small and closed ecosystem with little impact on the day-to-day life of people. We have this same amount of money going back and forth between DeFi applications. We need to bring more users into the blockchain space and bring the DeFi use cases to the real world.
And to achieve the goal of mass adoption, we cannot expect a normal user, someone like a mother to know all the knowledge of how blockchain and crypto work just to get a simple loan. Internet banking is hard enough for her, let alone all that big-brain cryptography and backend infrastructure, so a breakthrough in user experience is inevitably needed.
At AshSwap, we care a lot about UI/UX and we aim to become the most user-friendly DeFi platform out there.
Fortunately, MultiversX has this vision of the next billion users and they do pay attention to user experience. For that, we chose MultiversX to be the home court of AshSwap.
AshSwap is the second decentralized exchange, or DEX, on MultiversX. Why would you need another DEX when the Maiar Exchange already exists? It’s because we serve a different need and complement Maiar.
AshSwap brings the stable-swap model onto the MultiversX where people can trade between similarly priced assets with low slippage and small fees and do so with significantly less locked liquidity. AshSwap is a much more suitable destination for this type of trade. Our simulations show with certain configurations, AshSwap can achieve the same price with 10% of the liquidity needed on the Maiar Exchange. This means the other 90% can be utilized for other purposes, thereby increasing liquidity and maximizing the efficiency of capital on the network as a whole.
We started AshSwap a year ago, and last month, we were honored to be the 4th project launched on the Maiar Launchpad and is the only DeFi project among the four. The results were staggering, given this tough time of the bear market. We would like to thank all our private investors and the community for such incredible support. Now it’s done, it’s time to go back to #build.
AshSwap at the moment is already live on Devnet and fully functional with all the core features including Swap, Liquidity Provision, Liquidity Staking, Governance Staking, and Yield Boosting.
We have held two Battle of Yields events in May and October, attracting tens of thousands of registrations, and have received very positive feedback from the participants.
We are ready for the launch on Mainnet, it’s just a matter of time until more stablecoins and stable assets come to the ecosystem, opening a whole new era for DeFi on MultiversX.
AshSwap is not Just a simple exchange.
It’s a DeFi primitive that can enable a lot more products to be built in the MultiversX DeFi ecosystem. It allows applications to issue digital assets that are pegged to one another and create decentralized and effective markets for those tokens. On MultiversX Mainnet, there’s the Maiar Exchange, but we need the other pieces to complete the DeFi puzzle.
Stablecoins are undoubtedly an essential element. Right now we have USDC on the MultiversX, which is an asset-backed stablecoin similar to USDT, but there are a lot more types of stablecoins that can be developed. Crypto-backed stablecoins like DAI, FRAX, or MIM. Algorithmic stablecoins like UST or Djed.
We also need lending/ borrowing applications like Aave and Compound on Ethereum, and on MultiversX there comes Hatom Protocol. These applications oftentimes issue their own version of assets that are pegged to the underlying asset, which is ideal to list on AshSwap. The same holds true for liquid staking applications and derivative products such as synthetics and options.
Those are the needed parts in the MultiversX DeFi ecosystem. But it’s very hard to start these initiatives without effective markets, by effective I mean it doesn’t put huge stress on projects to bootstrap excessive initial liquidity. With AshSwap, this changes completely, and the MultiversX ecosystem is now prepared for the next wave of development.
Let’s bring in that one billion users, we are here to serve them.
We want to end with a story about the team behind AshSwap. We are a bunch of young guys, highly motivated to build a financial application but didn’t have a prior connection and excessive funding to start with.
Outside of blockchain and crypto, there’s no way we can have the chance to do the things that we are doing. Legal requirements and bureaucracy would shut down our ambition in its crib. Blockchain and web3 have removed the high entry barriers so that everyone can practice ownership over their finance and decisions.
We want to join forces, open discourse, and build meaningful products to help steer the wheel of the industry toward the direction, we believe, is better for everyone.
The Internet has decentralized knowledge and information, now blockchain and web3 are decentralizing talents, so we, together, can build that future.
Other Language
- GER: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-de/
- VIE: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-vie
- FR: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-fr
- ES: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-es
- ID: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-id
- TUR: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-tur
- RO: https://blog.ashswap.io/ashswap-presentation-at-x-day-event-ro
