Decentralized Forex Created: Waves.Exchange rolls out a full-scale DeFo trading ecosystem with 6 new stablecoins
LONDON, Sept. 29, 2020 /PRNewswire/ -- On September 29, 2020 Waves.Exchange launches DeFo, or decentralized Forex – a new stablecoin-based framework that combines elements of the traditional Forex market, staking, and decentralized market-making protocols, such as Uniswap. DeFo users will be able to earn 12-15% a year staking their assets, plus up to 20% when providing liquidity to new stablecoin pools.
The DeFo ecosystem will be set in motion with 6 new stable assets, based on the Neutrino protocol: EURN, JPYN, CNYN, RUBN, UAHN, and NGNN. These coins won the recent community vote. Each of them will be stakeable and yield up to 15% a year in the stablecoin's own currency.
DeFo users can freely swap the new stablecoins for each other and for USDN (Neutrino USD) in any combinations and amounts. The size of each trade is limited only by the liquidity deposited in the contract. A special rebalancing algorithm will ensure that pools don't run out of liquidity and that each stablecoin is properly collateralized.
A network of secure oracles will constantly supply up-to-date currency prices from fiat Forex exchanges. For example, the EURN/CNYN exchange rate will always equal the real-world EURN/CNYN rate. This makes DeFo on Waves.Exchange very different from Uniswap, where the price can fluctuate wildly depending on the size of a swap.
Users can create and join liquidity pools to earn a percentage of the trading fees collected by the pool. Each trade will be subject to a 0.2% fee, and liquidity providers will be able to earn 10-20%, depending on a pool's trading volume. Unlike on Uniswap, where liquidity providers have to deposit equivalent amounts in both currencies, DeFo pools allow users to deposit both currencies in different amounts or just one of them.
In addition to swapping the stablecoins via the smart contract, users can trade them on Waves.Exchange. In this case, instead of the 0.2% swap fee, they will have to pay only the standard 0.003 WAVES trading fee (circa $0.01).
The number of available DeFo stablecoins will keep growing: the holders of NSBT governance tokens will even be able to vote to add their own, as long as they can provide the necessary initial liquidity for a pool.
To explore and join DeFo, see the official page: https://waves.exchange/defo.
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