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Bringing DeFi To The Next Billion With Maiar Exchange

Introducing Maiar Exchange: The Scalable Financial Engine Of The New Internet Economy.

In the past few years, we have been witnessing the surge of decentralised financial products that enhance sovereignty and avoid the shortcomings of traditional finance. The growing appetite for a different financial system is showcased by the impressive rise of the DeFi market cap, which reached $100 billion in just three years since the first DeFi products were released. But the DeFi revolution is only in its infant stage and there is still a lot to be done before financial sovereignty is restored.

As a new leading decentralised application, Maiar Exchange is going to play an important role in the future of DeFi. Currently being tested on devnet, Maiar has shown to be a very user-friendly, high-performance and highly secure DEX. Its launch will help the Elrond ecosystem grow and will offer investors attractive opportunities to generate passive income.

Powered by Elrond scalable architecture, Maiar Exchange is well-positioned to be a game-changer. Its scalability, fastness and affordability, coupled with user-friendliness, will help remove the entry barrier for DeFi trading platforms and inaugurate the era of financial sovereignty for the next billion people.

What is Maiar Exchange?

Maiar Exchange is a liquidity pool based DEX powered by Elrond that allows its users to become market makers by providing liquidity to a pair or pool of assets. By depositing their assets, users become liquidity providers and start earning a fee (MEX) for each swap transaction performed by that particular pool.

With Maiar Exchange, users can access all the core functionality of an exchange platform without middlemen. Through their wallets they store and fully control their assets and get access to high return investments.

Built on the powerful Elrond architecture, users benefit from high bandwidth, low latency, and extremely cheap transactions, which translates into inexpensive, automatic, and global instant swapping.

Maiar Exchange Special Features

1) Built On Elrond Scalable Architecture

Built on Elrond, the Maiar Exchange allows the same key elements of other DEXs in the market with the added benefit of getting access to Elrond architecture to perform global, near-instant, inexpensive transactions.

Elrond is the first blockchain network in the market in which state, network, and transactions sharding have all been implemented. The network runs on over 3200 validator nodes split into four shards, delivering 5,400 transactions per second each, and one coordinated shard called the Metachain. Its sharding architecture is adaptive, meaning that it can easily scale by adding additional shards when necessary, making Elrond the most scalable solution currently available.

2) Usability and Privacy

You can access Maiar Exchange by logging into Elrond’s Maiar app and conveniently sign transactions from your mobile phone. The application is very intuitive and easy to use. Through it, you can automatically and securely create a wallet in just seconds by only using your phone number. However, the phone number will not be recorded anywhere- only a hash of it will be used one time for the wallet creation so your privacy is fully respected.

3) Semi-Fungible Token Specs Liquidity Provider Tokens

SFTs are tokens that can be both fungible and non-fungible during their lifecycle. Initially, SFTs act like regular fungible tokens in that they can be traded like-for-like with other identical SFTs. Once they are redeemed, however, they lose exchangeable value, turning them into Non-Fungible Tokens. This system unlocks a new value and utility. For instance, it allows liquidity providers to receive tradeable LPs tokens and to use them as collateral when taking a loan or to provide liquidity and then sell their position.

4) MEX: Maiar Exchange Token

MEX is the native Maiar Exchange token owned by the community. Its primary function is to incentivise users to provide liquidity to the exchange. Through its broad distribution and compelling economics it will capture value in a positively reinforcing feedback loop and attract users in its ecosystem.

Additionally, MEX will power the DEX governance processes acting as fuel for the continuous decision-making processes necessary to keep Maiar exchange innovative and to create a sustainable value cycle for its stakeholders.

What Can I Do With Maiar Exchange?

There are three main self-sustaining components within Maiar exchange that offer users the possibility of performing exchange of digital assets, earn rewards, get access to liquidity or provide liquidity.

  1. Swapping

Swapping consists of exchanging one digital asset for another for a given price. In Maiar Exchange this mechanism is made very simple. Assets are swapped against Liquidity Pools (pots of tokens given by liquidity providers) and not directly with other market participants.

Currently, there are three digital assets that can be traded on Maiar exchange: EGLD (Elrond’s native token), MEX (Maiar Exchange token) and BUSD (Binance USD stable coin), and soon will include more.

The mentioned tokens are batched in two trading pairs (EGLD/MEX and EGLD/BUSD) and are going to be available on the launch of the Exchange. Users will be able to engage in exchange by using the swap feature and buy or sell directly at any given price.

2. Liquidity Pools

As previously mentioned, liquidity pools are token reserves that sit on DEX’s smart contracts and are available for users to exchange the tokens with. These tokens are provided by liquidity pool providers that the users of the platform can trade against. To be incentivised to provide liquidity, liquidity providers can earn rewards (MEX tokens) from the swaps that take place in their pool. But liquidity providers at any time can view and withdraw their liquidity even if the prices and overall liquidity fluctuate.

3. Farming

Farming is an extra incentive mechanism for liquidity providers that creates a positive feedback loop. Farmers can lock their liquidity in and “farm” the rewards on the trading platform. On Maiar Exchange farming is rewarded with MEX, thus farmers can get access to decision-making on the future of the financial services offered on the platform.

What Else Should I Know Before Getting Started?

Something that everyone using an AMM should keep in mind is the concept of Impermanent Loss (IL). IL describes the temporary loss of funds that can be experienced by liquidity providers due to volatility in a trading pair and it is more likely to occur when an asset is more susceptible to high volatility.

IL occurs when an AMM algorithmically driven token rebalancing formula creates an imbalance between the price of an asset within a liquidity pool and the price of that asset outside of the liquidity pool. So, what the liquidity provider should keep in mind is that if the price of the deposited assets changes since they first deposited them, the LP could be exposed to impermanent loss. The loss experienced only becomes apparent once one operates a withdrawal from the LP and at that point becomes permanent. However, the fees that one is able to earn might be able to compensate for the loss.

What’s Next?

Maiar DEX is a next-generation AMM built on the powerful and scalable Elrond blockchain. Compared to other DEXs, Maiar has the advantage of providing faster and cheaper transactions, as well as a seamless user experience. These characteristics are going to open the gates of DeFi to a wider public and allow for a proliferation of new use cases.

On the 12th of August, Maiar DEX opened for “chaos test”, the most effective way to empirically validate functionality and remove bugs. The team has spent the following weeks working on addressing all the issues that the 5000 users have pointed out and are now very close to the end date of the testing phase.

On the 14 of September Elrond Team has started the Battle of Yields.
Battle of Yields is an incentivized DEX stress-testing event, where security researchers, DeFi experts, and eager participants can share in a prize pool of $100,000 USD, that will be awarded for Maiar Exchange-related security findings, tool development, guides, documentation, and strategies.
The Battle of Yields event has three main components:
Security — $50,000 USD
Contribution — $25,000 USD
Yield competition — $25,000 USD

For more details about the competition have a look at the Elrond Network blogpost.

To keep posted on the Maiar Exchange launch, visit Maiar Exchange Website, Twitter, and join the Telegram announcement group.

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Everstake is a leading staking service platform providing secure and reliable solutions to token holders and institutional investors looking to profit off their digital assets. With the running top Validators on the PoS and DPoS markets, Everstake became trusted technical partner

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