If "AMM is the most successful DEX solution in the DeFi world", so that more ordinary users can participate, what SakeSwap has to do now is to use ILO to directly create AMM liquidity pools for projects and investors, in the field of decentralization Capture more valuable projects in the medium, and use the platform's own forward-looking market trends to open up the era of differentiated competition for DEX.
In the field of decentralization, the differentiated competition for traffic has never stopped, and the most familiar thing is the competition between Uniswap and SushiSwap, which will rise strongly in 2020.
Prior to this, AMM represented by Uniswap had achieved great success, so there was a long time ago that the project party provided incentives to users who made markets on Uniswap. This behavior was actually earlier than the liquidity mining started by Compound. , And Compound mining is generally considered to be a precedent for DeFi liquid mining. But despite this, Uniswap and Commpound used the innovation and differentiation in their models to literally obtain huge traffic, and even the total transaction amount once exceeded that of centralized giant trading platforms such as Coinbase.
As the popularity of Uniswap diminished, SushiSwap accurately cut into the market during the period when Uniswap ceased liquidity and seized the wave of liquidity released by UNI, making SUSHI's increase in an instant more than 100%. With the continuous growth of volume, the transaction The slippage has been balanced, and SushiSwap has successfully become the new darling of liquid mining and completed the most successful "copy" of Uniswao, which has been going on for a long time.
Although SushiSwap is a fork of Uniswap, the competition between them has never stopped. From a simple "copy/paste" model to two different development trends, the competition of DEX has gradually increased. Although there are still many projects that are also crazily exported between AMM and liquidity, no matter from which party's perspective, a large amount of money will be invested to maintain liquidity incentives, the incentives are often unsustainable.
As a series of projects such as DeFi, NFT, and Polkadot have been verified by the market, their value is self-evident. How to take advantage of the vacuum period in the market to first discover and issue high-quality projects has become a point of contention for many DEXs in traffic differentiation competition; it has also become an important option for various giant whales and project parties to conduct investment evaluations.
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1. SakeSwap LIO
SakeSwap defines SakeSwap LIO as a decentralized liquidity crowdfunding platform, a new way of asset issuance. Similar to DODO's solution, it can easily solve the high crowdfunding threshold, lack of liquidity, and high slippage in the DeFi liquidity problem. Projects built on Ethereum and Polkadot will be able to easily complete the establishment of crowdfunding and liquidity pools, and quickly develop from 0 to 1.
For details, please refer to: https://app.sakeswap.finance/#/liquidity-offering
But the difference from DODO is that SakeSwap brings together DeFi, NFT, and DAO, which are currently popular in the blockchain market. It is also a decentralized exchange that forked from Sushiswap, and has the same community as Uniswap and SushiSwap. Uncut connections, but there are some key improvements in the mechanism. Sushiswap is different from Uniswap in that it brings users the AMM platform activated by SUSHI token. But SushiSwap has not improved the situation of impermanent losses. Inspired by Uniswap and SushiSwap, SakeSwap aims to improve AMM design through price curves and contributor rewards, and this also allows the platform to fully base itself in the competition in the DeFi liquidity field.
At present, the total market value of SAKE as a governance token is 5 million US dollars. The holder has great rights to control it, such as governance rights, and part of the fees paid to the agreement, and ultimately, the SAKE holder will own the agreement. SAKE allows liquidity providers and traders to continue to benefit from protocol development, which means that early adopters will become important stakeholders of SakeSwap.
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Two. Bounce Finance
Bounce Finance chose the decentralized crowdfunding track, which removed most of the unfair paths of traditional centralized crowdfunding platforms and solved certain market pain points. But unlike Uniswap protocols, it needs to set the upper limit and duration of each auction, and funds exceeding the upper limit will be bounced to users.
The total market value of its protocol governance token BOT is 60 million U.S. dollars, and it may add functions such as auction pools in the later period, and increase the repurchase and destruction mode.
However, the platform is too open, leading to any project can be launched for crowdfunding, and it does not perfectly solve the problems of DEX.
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Three.DODO
DODO is a next-generation on-chain liquidity solution based on the active market maker algorithm. By connecting to the oracle, it can provide a slippage ten times lower than Uniswap. Its characteristics include only needing to provide a single asset as a liquidity provider, thereby avoiding impermanent losses and holding risks, and supporting initial asset issuance and lightning exchange.
On the pain points of DEX liquidity, DODO has given the market an answer that the market is looking forward to, that is, DODO V2.0—Crowdpooling, a brand-new way of issuing liquidity. DODO promises to solve the problems of scientists running away, high buying cost, lack of liquidity, etc., and with the help of the flexibility of the PMM algorithm, to achieve lower cost, higher fairness and more sufficient liquidity than the current AMM asset issuance . Of course, the specific effects need to be verified by the market after the launch.
At the same time, as DODO's governance token, DODO Token has a total market value of nearly 2 billion US dollars, which greatly enhances DODO's competitive position in the field of decentralized liquidity solutions, and also allows people to see the value of innovative DEX.
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Four. Polkastarter
Polkastarter is Polkadot's decentralized exchange (Dex), similar to Ethereum Uniswap. Aiming at pain points such as transaction congestion and high handling fees.
On Polkastarter, there are two types of unlicensed, fixed swap pools: Standard Pools and Atomic Pools, that is, standard token pools and POLS exclusive pools. The platform uses the advantages of parachains to provide a cross-chain token pool, and supports crowdfunding through auctions in a decentralized and interoperable environment. After Polkastarter's first liquidity pool was launched, the two fixed exchange token pools were sold out in less than 30 seconds. At present, the total market value of its governance token POLS is 140 million U.S. dollars, and the circulation has reached more than 4,800. It also makes people once again feel that the innovative value of blockchain in the field of decentralized transactions is unlimited.
Of course, using Polkastarter, decentralized projects can raise and trade funds in a low-cost and fast way, but its drawbacks cannot be ignored. As a protocol for cross-chain token pools and auction transactions, Polkadot allows projects to be based on Raise funds in the Polkadot network and interoperable decentralized environment. Whether Polkadot cross-chain transactions can circumvent the inherent systemic risks brought about by DeFi portfolio transactions is still unknown.
SakeSwap's ambitions in the field of liquidity go far beyond this
In the September 2020 dialogue of the OKEx Intelligence Bureau on the development of DeFi, someone pointed out that there are 5 most promising liquidity projects, namely YFI, YFII, Swerve, SushiSwap, and SakeSwap. Up to now, only SakeSwap has not fully exerted its efforts. However, according to the current dynamic trend, whether it is the strategic upgrade of the platform or the creation of a liquid crowdfunding platform, it seems to herald the upcoming rise of SakeSwap.
Perhaps SakeSwap in 2021 will continue Sushiswap's "fork" tradition and inherit it, even surpassing the existence of "Creator" Uniswa, becoming the helm of the next DEX.