Entity: Enhancing the MultiversX DeFi Ecosystem
Decentralized finance (DeFi) leverages the power of Web3 to make investing more decentralized, transparent and secure. With projects like AshSwap and Hatom about to release their DeFi protocols on the MultiversX mainnet, learn how Entity will create synergies and help grow the DeFi ecosystem in 2023.
A new age of investing
DeFi has become a huge topic in the blockchain world. Essentially, DeFi is a range of Web3 applications where users can earn yields while maintaining control over their assets. DeFi’s use of transparent smart contracts enables a range of next-level financial applications without the need for trusting a bank or a centralized crypto exchange.
DeFi consists of different protocols, which investors can use individually or in conjunction to get the most out of their assets. Together, these separate building blocks can work in harmony to empower users and create a lively ecosystem like the growing MultiversX DeFi space.
AshSwap: a key DeFi building block
Last year, the MultiversX team demonstrated their enthusiasm for DeFi by selecting AshSwap as the fourth xLaunchpad (formerly Maiar Launchpad) project. As the first stable-swap exchange on MultiversX, AshSwap users can swap stablecoins at maximum efficiency. This specialized DEX will create synergies throughout the DeFi ecosystem and help investors avoid volatility by offering swaps with minimal fees and slippage.
In addition to their Swap module, AshSwap is also building a range of features like Liquidity and Governance Staking that support the platform and the broader ecosystem. AshSwap held two successful public testing rounds with their Battle of Yields events and are now preparing for their mainnet launch on February 17th.
Hatom Protocol: supercharging MultiversX DeFi
After the AshSwap launch, MultiversX doubled down on their commitment to DeFi by choosing Hatom Protocol as the first-ever xLaunchpad startup. The Hatom Team is developing solutions for a key DeFi building block: Lending & Borrowing. This will benefit the ecosystem in several ways, as lenders will have new opportunities to earn passive income while borrowers can leverage their assets in new ways.
By creating new liquidity flows, Hatom’s lending protocol will elevate the rest of the MultiversX ecosystem. And Hatom’s Liquid Staking solution will also be a game-changer for MultiversX DeFi through empowering delegators to utilize their staked EGLD in a variety of ways. These tools are only the beginning for Hatom, who have a range of other innovative solutions in the works such as their Hatom Labs DeFi incubator.
xExchange: ready for the next wave
Beyond launching high quality DeFi projects, MultiversX has also built some of their own decentralized tools for Web3 investors. xExchange (formerly the Maiar Exchange) is a DEX where users can swap assets and earn attractive yields. Before DEXs, the only way to exchange crypto assets was through order books on centralized exchanges such as Binance. Now, traders can easily swap tokens while retaining full custody of their assets.
DEXs like xExchange also allow users to earn yields by joining liquidity pools. Investors provide a pair of tokens and then can start earning a percentage of trading fees between those tokens as passive income. This is just the tip of the iceberg for xExchange, which also hosts a range of other modules such as Metastaking and Metabonding. And with bonus rewards from the new Energy feature, xExchange has strong incentives in place to encourage long-term growth.
How Entity will enhance the whole ecosystem
It is clear that the MultiversX Team believes DeFi is an excellent use case for their powerful blockchain. But a truly vibrant ecosystem requires other key players to step up and provide the utilities and infrastructure that the community needs.
That’s why Entity is committed to kickstarting the MultiversX DeFi space. As a community-driven platform for DeFi builders and investors, Entity will help grow high-quality projects while contributing its own features that enhance the ecosystem.
- As an incubator and DeFi hub, Entity will launch blockchain startups that provide deep value to the ecosystem and boost adoption of MultiversX. Entity will encourage this growth through modules such as the Entity Launchpad and Launch Pool.
- As an innovator and DeFi platform, Entity will provide opportunities for users and projects alike to enhance their liquidity and grow their assets. Entity will achieve this through modules such as the Liquidity Diversification Marketplace (LDM), Staking Farms, and DeFi & Analytics, with many more exciting features to follow.
Overall, Entity will enhance MultiversX DeFi by developing our own innovative modules and launching DeFi projects that fill gaps in the ecosystem.
The future is bright
Each of the DeFi primitives mentioned above are useful on their own, but together they form a powerful system that is stronger than the sum of its parts.
The MultiversX Team has a long-term vision to cultivate a vibrant DeFi ecosystem, and Entity will support every step of this growth. And since this article covers only a small sample of the DeFi projects currently building on the network, the sky is truly the limit for the MultiversX DeFi community.
Stay tuned for what’s next
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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.
