What Kinds of DeFi do We Have on IC?
On Internet Computer, DeFi will achieve key milestones in 2022. At the level of technology development of DFINITY foundation, we can see the following exciting progress:
- The direct cryptography integration of IC < > BTC and IC < > ETH will enable the assets of BTC and ETH to flow seamlessly on IC, which is an unprecedented seamless cross-chain experience;
- IC’s smart contract has been able to accept ICP and DeFi has been started;
- IC token standards are promoted and unified;
- Fiat Money and Stablecoin are integrated;
- DFINITY foundation is developing components and basic settings for DeFi, including atomic transactions, code verification, NNS pledge transparency, etc;
- SNS system is launched to provide a comprehensive solution for token governance, distribution, fund-raising and account book for third-party dapp.
ICPSwap
Type: decentralized exchange
Features: regional market making similar to Uniswap V3, integrates social attributes for transactions
ICPSwap provides full-stack financial, market, and Dao services for IC. As for the basic functions of swap, in its demo version, it can quickly and without programming create tokens on the IC, and test token swap for WICP, ICST, etc. The transaction confirmation delay is about 4 ~ 5 seconds, which is similar to other swaps.
Its swap algorithm is a regional liquidity synthesis curve similar to Uniswap V3, including market making in optional intervals. This is also the only decentralized exchange based on the optional interval market-making curve in the whole encryption field, except Uniswap V3 on Ethereum.
Because the canister was not allowed to accept ICP in the early stage of IC, ICPSwap designed a personal wallet in swap for security problems. Users manage mnemonics and private keys themselves, which is also a general expedient for Defi in the early stage of IC. Plans are underway to access other wallets.
While reducing development costs for DFINITY developers, ICPSwap also tries to combine the social attributes of applications on IC. Openchat and other social functions have been integrated in its demo version, which can establish a Web3 community for a token; This has launched decentralized advertising driven by ICS token and plans to launch Dao plug-ins for the future, trying to further reduce the cost of developers in operation, token distribution, community, and governance, which is indeed the main demand in the early stage of the project.
Official website: https://3pbcj-viaaa-aaaah-qaajq-cai.raw.ic0.app/
Demo： https://rv6ki-dyaaa-aaaah-aaa5q-cai.raw.ic0.app/
Sonic
Type: decentralized exchange
Features: supported by Feet, compatible with WICP and XTC, the IC token standard DIP20 is launched
Sonic can be seen as the original Dfinance, launched a test version in August 2021, and was renamed Sonic after cooperating with Fleet in November. Sonic also provides standard functions such as rapid issuance of token assets, swap of assets, and adding liquidity. Its trading engine is also similar to Uniswap V2.
Sonic also plans to launch mining, initial token issuance, launchpad, governance, and other functions. The early test version has been closed, but V1 has not been launched.
Sonic has done a lot of research on the token standard of IC and launched the DIP20 standard, but it has not been verified by the community. At present, the issuance of most token assets still needs to wait for the launch of official SNS services (token issuance, governance and fund-raising infrastructure dedicated to service projects).
Sonic also integrates more WICP and XTC launched by Fleet (WICP is the ICP token suitable for DAPP after packaging, and XTC is the cycles token after packaging) and plug wallet. These paradigms are still relatively early, and community adoption needs to be improved.
Official website: https://sonic.ooo/
V1: not available yet
InfinitySwap
Type: decentralized exchange
Features: develop cross-chain bridge, introduce Ethereum assets and try to develop SocialFi
InfinitySwap will build a decentralized exchange similar to Uniswap V2. Many of its technologies have been transplanted to Rust and deployed on the IC. At the same time, InfinitySwap will also establish a cross-link bridge between Ethereum and IC as a supplementary scheme for the direct integration of IC < > ETH through cryptography, allowing users to trade Ethereum assets on IC at a lower cost.
InfinitySwap also plans to develop a Metamask-style wallet application to access token assets. The wallet has certain SocialFi functions, such as sharing your portfolio, trading strategies, etc.
InfinitySwap also plans to introduce cryptographic integration of IC < > BTC and BTC assets. But in fact, the cryptographic integration of IC < > BTC is completed by Dfinity foundation. It will be used as a public service and can be called by any application. Native integration with other chains will be the basic feature of Defi on IC.
The founder of Infinityswap Graduated from Cambridge and Oxford, was invested by beacon fund under Polychain and Dfinity and the top investment in Silicon Valley, and also obtained the investment of 9YARDS, which once invested in Robin Hood. The current demo and wallet are pure interface previews, and there is no available version.
Official website: https://infinityswap.one/
Demo： https://app.infinityswap.one/
Wallet: https://chrome.google.com/webstore/detail/infinity-wallet/jnldfbidonfeldmalbflbmlebbipcnle/related
Deland Labs
Type: decentralized exchange
Features: integrate order book and swap, and double matching engine on and off the chain
Deland lab aims to establish a decentralized exchange based on IC and Open Order Protocol. Deland labs will combine the trading methods of 0x and AMM to build a decentralized exchange on IC.
Because of the high transaction cost of Ethereum, the order book transaction model of 0x is difficult to use. 0x can only reduce the cost through off-chain matching. Under the low transaction cost of IC, Deland lab tries to create a better order book DEX than 0x on the basis of decentralization, while retaining the liquidity incentive advantage of AMM and integrating the two transaction experiences. There is no beta version yet, but we can see some demo videos.
Deland Lab team has successfully developed centralized exchange based on actor model, so it has strong technical advantages in developing decentralized order book exchange on IC network which is also actor model. Meanwhile, Deland Lab team has also done a lot of research on token standards.
Facing the possible congestion and jam problems on the chain, Deland Lab will realize a dual-engine matching on and off the chain to ensure the user’s transaction experience. At the same time, in order to ensure decentralization, the offline matching engine will be run by multiple pledge nodes.
Official website: https://delandlabs.com/
CetoSwap
Type: decentralized exchange
Features: integrate OpenSea & Uniswap, allowing NFT fragmented transactions
CetoSwap provides the basic swap like Uniswap V2 and liquidity functions and tries to introduce NFT transactions, NFT fragmentation, and NFT fragment transactions into the platform, so as to realize the comprehensive platform of OpenSea & Uniswap. The test network just launched by CetoSwap includes a complete set of NFT casting, display, trading, and other functions, and also allows users to trade after fragmentation of NFT. At present, these attempts are still relatively early.
Official website: https://7pnex-saaaa-aaaai-qbhwa-cai.ic0.app/#/
Test network: https://7pnex-saaaa-aaaai-qbhwa-cai.ic0.app/#/fnft/Ceto ‘s%20collection
Terabethia
Type: Cross Chain Bridge
Features: quickly build Ethernet chain mapping assets on IC
Although Dfinity foundation is developing the native cryptography integration of IC < > ETH, Terabethia, a cross-chain bridge under fleet, will be an effective supplement to this integration to quickly generate the mirror token contract of ERC token on IC without providing verification for the mirror token contract, so as to realize the cross-chain asset mapping transfer without access.
Based on the message contract code of StarkWare, a message mechanism is abstracted to allow the communication between Eth and ICP, which will allow the contracts on the two blockchain networks to communicate with each other and allow the seamless movement of assets between the two networks. At present, the information forwarding mechanism still relies on the AWS server and will be completely decentralized after the completion of the native cryptography integration of IC < > eth.
Terabethia is also developing token standards DIP20, DIP72 and DIP1155 equivalent to ERC20, ERC721, and ERC1155 on IC. The fleet team behind Terabethia is also working with Dfinity foundation to promote the implementation of equivalent EVM on IC, so as to promote cross-chain development.
Official website: https://terabethia.ooo/
Test: https://docs.terabethia.ooo/
Dank
Type: Gas mobility
Features: IC native Defi, providing mobile packaged ICP and gas tokens
Dank is a collection of infrastructure layer protocols on ICP. It encapsulates cycles (XTC) and ICP (WICP), so that cycles and ICP have better liquidity and become a decentralized gas bank of IC.
WICP is the encapsulated version of IC native token ICP, which is the same as that of wETH.
XTC is encapsulated cycles. Cycles are the gas token of IC network. The price of cycles is stable to legal currency, and its stability is guaranteed by IC’s native algorithm. Cycles can only be held by smart contracts. XTC allows user accounts with non-smart contracts to hold cycles. XTC can also be combined in other DeFi like standardized tokens. Dank further optimizes the experience of IC developers when using gas. XTC has the same built-in developer features and functions as cycles wallet, which can be directly used to create and manage containers or pay transaction fees.
Because the generation of cycles on IC is related to ICP price and economic algorithm, dank’s attempt is the basis of IC native DeFi. For example, the implementation of XTC-based DeFi can cover the running gas cost of DAPP by generating interest, and can also be used as a payment means for calling interfaces between contracts, which may give birth to some very interesting IC native DeFi.
Official website: https://dank.ooo/
ICLight. house
Type: gas mobility
Features: IC native DeFi, allowing two-way exchange between ICP and Cycles
ICLight.house aims to realize a two-way exchange between Cycles and ICP through UniSwap v2. The handling fee will be used to encourage liquidity providers. It is IC’s native DeFi.
At present, IC can only exchange Cycles in one direction. In order to serve developers, cycles will maintain a stable legal currency. Therefore, the exchange ratio of ICP / Cycles is determined according to the ICP price of the exchange, and the gas demand in the IC network is not constant. Therefore, there will be an arbitrage cycle in time. ICLight.House’s two-way transaction between Cycles / ICP is an attempt to solve this problem.
