DEXes Drive the Integrated Growth of the DeFi 2.0 Ecosystem: A Recap of OneSwap’s Innovative Value
In the latter half of 2021, more DeFi players have shared their views on DeFi 2.0. Fundamentally, DeFi 2.0 might herald the diversified growth of ecosystems. DeFi 1.0’s shift towards DeFi 2.0 has already started in DeFi segments such as DEX, derivatives, etc. In other words, through infrastructure updates in terms of the DeFi ecosystem, DeFi 2.0 would offer faster transaction, enhanced trade security, and better trading experiences.
As public chains improve their performance, DEX, an important emerging infrastructure in the DeFi world, has demonstrated its strong momentum in 2021. In the future, DEX updates will be an unstoppable trend, triggering the DeFi 2.0 revolution.
The growing DEX sector: The next crypto opportunity of this era
Although DeFi has presented promising growth records, it still faces a number of problems in terms of network performance, risk control, capital efficiency, liquidity, etc. As such, people gradually shifted their focus to the DEX, hoping that it could offer the breakthrough needed for the development of DeFi 2.0.
OneSwap is an innovative DEX and a leading application in the CoinEx ecosystem. It has received strong support from CoinEx in terms of resources and technology. OneSwap has made profound changes and adopted a development model that differs from peers, especially with regard to the underlying mechanism and matching protocol.
Fully decentralized transaction protocols based on smart contracts
Compared to most of the semi-centralized DEXes out there, OneSwap has adopted a fully decentralized transaction protocol. On OneSwap, all interactions are executed through smart contracts, which keeps transactions secure and stable. This also avoids trade manipulations, which frequently occur in the crypto space, and allows Decentralized Finance to stay open and transparent.
The AMM-based on-chain order book model
OneSwap introduces an on-chain order book model based on AMM. With such a model, users can initiate a market order or a limit order, set buy and sell orders according to the target price, and have them automatically executed.
The integration of AMM and the order book enhances the liquidity of users’ digital assets while addressing the liquidity challenge faced by DeFi. It functions as a major driving force for DeFi 2.0.
An extremely deflated economic model
As a result of their excessively rapid growth, many DEXes suffer from high volatility. This means that if their token price plummets due to bad market conditions, panic selling would lead to additional losses.
To avoid such problems, OneSwap has tapped into an extremely deflated model in terms of the token economy. On the one hand, the model allows the ecosystem to grow steadily while offering lasting returns. On the other hand, it will stimulate price growth in the secondary market, providing sound growth expectations for users.
Lowered frictional costs
OneSwap has conducted intensive optimization of its smart contracts and adopted a flexible data structure to minimize users’ GAS payments on the DEX and offer lower transaction fees.
OneSwap’s answers to the DeFi 2.0 mission
With varying development processes, all crypto applications will pursue innovation and upgrades in a new field once it gains a stable foothold in a field.
DeFi finds itself in such a development stage. Having disrupted conventional finance, DeFi 1.0 has become a crypto rockstar. However, the appearance of diversified financial needs has revealed the many deficiencies of DeFi 1.0, covering insufficient liquidity, low capital efficiency, lack of an economic model that stays stable over the long run, etc. These problems triggered the advent of DeFi 2.0, which has presented a great opportunity for innovative applications such as OneSwap.
OneSwap has responded to the DeFi 2.0 mission with innovation.
In terms of the product, OneSwap aims at minimalist design and ease of use to improve user experiences and offer a simple, intuitive DEX ecosystem. Concerning applications, relying on the increased product diversity, OneSwap has made progress on many fronts, including liquidity, security, and transaction capability, which is conducive to building a DeFi 2.0 ecosystem. With regards to resources, OneSwap is backed by CSC’s strong expertise in conventional finance, blockchain, and corporate management.
OneSwap’s attempts in decentralization have been extremely inspiring for every DEX. These innovations have also shown the way ahead for the development of DeFi 2.0 and created a DeFi ecosystem with overall prosperity.
