Waves.Exchange Announces Launch of DeFo Ecosystem — 6 New Stablecoins Up For Staking
As the market continues to grow and the opportunities for digital asset holders expand, we at Waves.Exchange are delighted to announce the launch of the DeFo ecosystem, which took place on September 29, 2020. DeFo, short for decentralized Forex, is a novel, stablecoin-based mechanism designed to combine all of the main constituents of traditional Forex markets and decentralized market instruments, such as staking.
The new platform will allow our users to earn 12 to 15% annually on asset staking, or up to 20% upon stablecoin liquidity pooling. Swapping and trading of the EURN, JPYN, CNYN, RUBN, UAHN, and NGNN stablecoins have been made available starting from September 29, 2020.
The New DeFo Assets
The new assets we are providing on the DeFo platform were selected on the basis of our community voting. The Neutrino protocol will be used to provide our users staking and swap opportunities with EURN, JPYN, CNYN, RUBN, UAHN, and NGNN. The most recent vote conducted by our community acted as the basis for the selection of the assets, allowing our platform to conduct the process in a fully decentralized manner using the NSBT governance token, which in themselves are inextricable elements of the Neutrino framework. The Neutrino protocol provided the necessary infrastructure for the creation of the DeFo ecosystem on the basis of the existing Waves architecture.
The new assets were added as a result of our decision to continue and expand the operation of the USDN (Neutrino USD) stablecoin — the first decentralized stablecoin on the Waves.Exchange platform. The success of the USDN asset is attributable to its ability to generate up to 12–15% in annual yields for stakers without volatility risks while maintaining dynamic interest rates. The same mechanism is being applied to all DeFo stablecoins.
The USDN will be used to back all of the new assets added on DeFo, making them available for staking with the average yield set for 15% annually in the asset’s original currency. Such an approach will allow investors operating on our platform to switch between trading pools based on market dynamics and adjust their portfolios to maintain profitability.
The DeFo mechanism will also allow our users to swap their assets for the newly added stablecoins or for other assets or USDN in any amounts. Consider the fact that the liquidity deposit will be acting as the only limitation for trade and exchange sizes with a specialized rebalancing algorithm ensuring the availability of liquidity and proper stablecoin collateralization.
Swapping is not the only function added by our team, as all of the newly added stablecoins can be traded. The main advantage is that the 0.2% swap fee will be replaced by the 0.003 WAVES trading fee, but with limited liquidity based on market supply.
Currency exchange rates will remain up to date based on data feeds from a secure network of independent oracles that will be receiving data from fiat Forex exchanges. By making the exchange rate update process in real-time, we believe that DeFo will be able to remain unique and different from the Uniswap mechanism, which is subject to price fluctuations based on swap sizes.
The new opportunities granted by DeFo and other mechanisms on the platform will allow our users to take full advantage of the features of the exchange and earn revenues by joining liquidity pools and taking a share of the trading fees. Given that each trade is subject to a 0.2% fee, the providers of liquidity can earn an estimated 10–15% annually based on the volumes of trade generated by the pool.
We have done our utmost to make the mechanism even more user-oriented by the fact that liquidity providers, unlike in the case of Uniswap, can deposit different amounts of both currencies, or one of them, depending on their choice.
We are determined to continue adding new assets to the platform and give holders of the NSBT governance token the chance to place their desired assets up for the vote, depending on the availability of initial necessary liquidity for forming a corresponding pool.
Stay tuned for more news and updates from Waves.Exchange. Visit the official page at https://waves.exchange/defo to learn more about the DeFo ecosystem and to join it as a member.
Feel free to approach the Waves.Exchange customer support service via our Telegram group. In the Waves.Exchange desktop and web apps, you can also contact customer support via the chat service in the bottom right corner.