DeFi or decentralized finance is happening mainly on Ethereum but many other blockchains are catching up. EOS is one blockchain where DeFi related development is happening with sheer speed. EOS currently has 22 live DeFi projects and some are really doing well. Defibox is one project which caught the crypto community attention recently. The project was launched on July 21, 2020. Defibox is basically the Uniswap on EOS. You can swap any EOS token on Defibox with lightning speed and ease. The project is initiated by Defibox Foundation. A big investor to Defibox is Newdex, a multi-chain DEX and the most popular EOS DEX. Defibox is built on the simple concept whereby liquidity for exchange transactions is provided in the form of on-chain pools. Trades are executed against these on-chain pools and an automated market-making (AMM) protocol ensures easy execution of the order.
Defibox swap screen
Every project starts in a centralized manner. Decentralization takes place phase-wise if the motto is to obtain decentralization. Since its inception, blockchain has promised to achieve decentralization. But it is really not so easy to obtain complete decentralization. The way people act and the way governance is formed may create contradictions and confusions. Achieving consensus is never frictionless and different opinions exist in all democratic governance models. Defibox is trying to move close to the road of true decentralization. Let’s see what they have done till now:
Trade without any intermediary
It is an AMM based platform. There is no intermediary while you transact. Every transaction is peer-to-peer. The transaction happens in real-time with full transparency. You hold your keys while you hold your coins and transact.
On-chain transactions
All the transactions on Defibox are manipulation-free. Everything happens on blockchain and the transactions are viewable by the public in a transparent manner. There is no possibility of a fake volume. Real-time checkability is a key feature of Defibox.
Permissionless listing
Anybody can list any EOS token on Defibox. Yes, the listing is free. You just need to create a trading pair and provide on-chain liquidity. You also earn trading fees when you provide liquidity.
Managed & driven by community
Defibox is managed and driven by the community. BOX is the governance token of Defibox. BOX holders vote for the governance of the platform and take part in important decision making. BOX holders only decide the future roadmap of the project. The users can earn BOX by providing liquidity on Defibox. Defibox Foundation is the initiator of the project but they are a participant of the project only and not the controlling authority. The aim of community DAO is to dissolve the foundation slowly and achieve more decentralization.
On-chain oracles
Defibox has recently released the on-chain oracles. It helps the swap mining contract to obtain EOS price for performing all calculations. It’ll soon support the on-chain price feeding of USN stable coin contract too. The contract has been audited by SlowMist. On-chain price discovery will be an important way forward towards true decentralization.
Defibox has grown tremendously within a short time period. The top three markets of Defibox have more than 700K+ daily EOS volume and daily new markets are being added by the users. Liquidity will be key to the success of such platforms and the success of Uniswap has proved that people are ready to try decentralized instant trading. Ethereum’s arbitrary gas fee is a big problem for normal traders. Everybody isn’t a whale to burn gas. Defibox comes with a practical solution. Feeless transactions on EOS can allure tokenization of many popular cryptocurrencies as EOS wrapped tokens. Defibox also will have scopes to grow leaps and bounds. They’ve already started to adopt true decentralization step by step. The transition will be watch-worthy.
Cheers!
[paragism]