Entity DeFi: MultiversX Devnet Adventure Guide
DeFi Summer is upon us! While there are some great protocols already live on MultiversX mainnet, today we will take a look at some exciting upcoming features that are publicly available on the devnet. Join us for a deep dive into the ecosystem, potential synergies, and the future of DeFi.
Keep up with the evolution
You know that feeling when you discover a valuable new financial tool?
Expect to have that feeling again and again in the coming months on MultiversX. While this is a positive sign for the ecosystem, it can become a bit overwhelming if you’re not already a DeFi expert.
The more protocols and strategies available, the more research and planning you need to keep up with the opportunities. Reading threads and articles is a great way to build your knowledge, but there is no replacement for hands-on learning.
This is where devnet exploration comes into play.
Although the APRs and other figures might not represent what the real values will be on mainnet, practicing DeFi on the MultiversX devnet is an excellent low-risk method to learn firsthand and gain an insightful preview into the next wave of growth.
Did we mention there are some great airdrop rewards as well? Let’s dive in!
The future of DeFi is already live on MVX devnet
AshSwap: next-level aggregation and more
As the first stable-swap on MultiversX, AshSwap has already established itself as one of the leaders of this evolving DeFi ecosystem.
The AshSwap Team has continued working hard to continuously improve their protocol since their mainnet launch earlier this year. This includes AshSwap developing integrations with projects such as Hatom, JewelSwap, Autoscale, and SALSA- plus building some of their own new features.
For example, you can now try out AshSwap’s upcoming DEX aggregator.
DEX aggregators are important for a thriving DeFi ecosystem since they help find the most efficient way to swap tokens from several different exchanges. While there are already some existing aggregators on MultiversX such as JEXchange and Arda, these solutions use the static trade routing method that finds the single most efficient swap route.
AshSwap’s DEX aggregator, on the other hand, goes a step further by using dynamic trade routing. This means that AshSwap can leverage multiple routes at once for maximum efficiency. As seen in the graphic above, this approach can lead to some creative routes that function like mini arbitrage opportunities for swappers.
For low liquidity pairs, this can be especially helpful for achieving the best possible exchange rate without draining liquidity from a single pool. To see how this mechanism works in practice, head on over to the AshSwap devnet!
Autoscale: making DeFi more accessible
Have you heard of Autoscale? The team at Autoscale is building a powerful set of automated tools that are all about simplifying the Web3 investing experience.
Autoscale could become a highly valuable piece of the MultiversX ecosystem due to the way it empowers investors to easily capitalize on different DeFi opportunities. For example, users will be able to put their funds in vaults that automatically optimizes their yields over time.
Autoscale can also automatically compound investments at the optimal frequency instead of requiring users to constantly re-invest manually.
While Autoscale’s autocompound feature is still under development, you can already try out some of their features on MultiversX devnet.
Overall, this project shows that DeFi is not a zero-sum game, and that building tools on top of other protocols such as AshSwap or DX25 can produce additional value for all involved stakeholders.
DX25: next-generation concentrated liquidity
DX25 is a new DEX that will supercharge MultiversX DeFi with a range of powerful and innovative liquidity tools.
Although DX25 is building a full suite of exciting features such as on-chain derivatives and more, concentrated liquidity will be at the heart of their platform.
Improving on the Uniswap V3 model, DX25 allows users to laser-target their liquidity for supercharged yields. Instead of splitting fees with every other LP in a pool, you can experiment with precisely focusing your liquidity to earn several times more than on other exchanges.
Currently, you can check out their devnet site to practice swapping and adding liquidity. This is a great chance to get comfortable with the different options such as fine-tuning fee levels and price ranges, so you can operate with maximum precision once the DX25 mainnet launches on MVX.
And with $100,000 in $DX25 tokens in rewards for devnet users, there are certainly a lot of reasons to start checking out DX25 now.
Hatom: enhancing liquidity for all
Are you ready for Hatom?
Hatom is an emerging DeFi titan on MultiversX with a focus on secure, scalable tools like Liquid Staking and Lending & Borrowing.
While the project’s token launch on xLaunchpad and mainnet release are both coming up right around the corner, you can already test out their flagship features on devnet.
Both of Hatom’s core modules will open up exciting new liquidity flows for MultiversX DeFi. The Lending & Borrowing feature will function like a decentralized bank, where users can choose to take on loans for new investments or supply their assets and earn attractive interest rates.
On the other hand, Hatom’s advanced Liquid Staking solution will take a core function of MultiversX to the next level. 65% of all EGLD is currently staked and hard at work securing the network. With Hatom’s liquid staking, this liquidity can be unlocked, with a range of use cases for investors to make their staked EGLD work even harder for them.
Instead of having your staked funds just sitting with a validator, Hatom users will be able to tap into their liquidity and use it in other ways. For example, they can join pools on AshSwap or DX25, or buy NFTs on Xoxno.
There are even some powerful synergies within Hatom’s own product suite. For example, lenders can earn rewards from supplying liquidity and liquid staking at the same time. Or, stakers can lend part of their liquid EGLD and deposit some of it as collateral to borrow the same asset. This way, the increase of lending income can help offset increases in borrowing costs. Meanwhile, you can put your borrowed assets to work by farming on another protocol.
You can continue building your position as long as the ratio between your borrowed and supplied assets, known as your health factor, remains above a certain threshold to avoid liquidation. With the rewards of your additional farming or other strategies, it’s possible to pay back your loan- thus increasing your health factor and decreasing your risk.
While the amount of potential integrations is vast, you can already try out a number of them on the MVX devnet.
OneDex: powerful community tools
OneDex is another new protocol on MultiversX building a range decentralized tools for Web3 investors.
OneDex has already released their permissionless DEX and farms, as well as a launchpad that is open to ecosystem projects. They also made a splash recently by announcing an upcoming bridge to Solana that could bring some new liquidity to MultiversX.
But that’s not all!
Limit orders are a powerful financial tool, which are beloved by TradFi traders for their ability to execute orders with a high amount of precision. Using limit orders, investors are able to set up a swap that will only execute when an asset reaches a certain level.
OneDex is bringing this feature to MultiversX and have already made it available to try out on their devnet. This could drive additional liquidity and trade volume to the network by allowing users to automate buy orders at the bottom or sell orders at the top of a trading range.
Tools like this make OneDex an intriguing project to watch during MultiversX DeFi Summer and beyond.
Why a vibrant DeFi ecosystem matters
DeFi is all about improving on traditional finance and centralized Web3 platforms to deliver more transparency and greater yields.
However, there is no one-size-fits all strategy for DeFi investors. There are a range of different opportunities to suit different needs, and your approach may vary depending on factors such as your investment timeline and risk appetite.
Some users may farm, some may lend, and some may borrow. And this is just the tip of the iceberg! Beyond having just a few popular protocols, it’s valuable to have a range of DeFi tools, opportunities, and analytics to fit different needs and circumstances.
In a thriving DeFi ecosystem, users can even be creative and link together different protocols to create the most optimal investments possible based on their own personal criteria.
As a growth engine for Web3, Entity encourages further DeFi development to support these kind of innovative strategies and take the ecosystem to new heights.
More synergies, more growth
There are still a number of important gaps to fill despite recent progress in the MultiversX DeFi space.
Autoscale is bringing yield optimizers, DX25 is bringing derivatives, Hatom and AshSwap are bringing decentralized stablecoins, along with many more powerful tools from these projects and others.
In addition to the protocols mentioned above, there are several other innovative DeFi builders in the community such as JEXchange, Proteo, along with many more.
And other ecosystem projects such as Combased, Epunks, and Staking Agency have started building useful DeFi products such as lending, borrowing and leveraged yield farming on JewelSwap and liquid staking on SALSA.
Build your own DeFi strategy
Between all of these protocols, there will be more and more potential synergies and creative strategies for investors to piece together.
NFT collectors will soon be able borrow using their NFTs as collateral on JewelSwap to buy launchpad tickets, secure profits and then close their position after launch.
While there will be plenty of opportunities to increase your leverage for more risk and reward, there will also be new strategies for more cautious traders or investors with less time on their hands.
For example, investors will be able to put their tokens from other projects into an Autoscale vault to maximize their returns without needing any major time commitment to maintain their position.
Or, users will soon be able to act like their own hedge funds by using leveraged positions and opening up shorts on platforms like DX25 to reduce their portfolio risk and help ensure positive outcomes.
With some research, imagination, and first-hand practice, the sky is the limit for investors in this increasingly vibrant DeFi universe.
MultiversX DeFi: let’s build together
Throughout each of their Web3 journeys, we look forward to supporting these innovative protocols and helping make MultiversX a top DeFi chain.
For more information about these projects, check out the recordings of their Entity Project Dialogues Twitter Spaces:
The Entity Builders Forum on June 10 will also feature a deep-dive panel about DeFi, titled ‘DeFi, Payments & Data: Building a Decentralized Future’.
Get ready for Entity
Ok, brave pioneers! We are reaching the end of today’s adventure guide, but our MultiversX DeFi journey is only beginning.
In the meantime, make sure to follow Entity on Twitter and join our Telegram channel for all the latest news, contests and more!
Enhancing the MultiversX Ecosystem
Entity is a Launchpad and suite of cutting-edge tools for Web3 builders and investors. Entity is focused on catalyzing growth in key areas such as DeFi, GameFi, NFTs and real-world blockchain applications.
MultiversX is a highly scalable, secure and decentralized blockchain network created to enable radically new applications, for users, businesses, society, and the new metaverse frontier.
