What makes a successful DeFi ecosystem? I believe that everything starts with technology. Developers attracted to the technology fundraise through launchpads and start building Dapps which attract users in turn and the cycle goes on. Everscale OS, which is able to scale almost infinitely, has set the world record of 64000 TPS in a real world decentralized environment. You could read more about Everscale here. There is a misconception that there are many promising layer 1s but I personally don’t know many that can linearly scale. Everscale enjoys wide adoption with dozens of projects already live and operating and dozens more are being built. Everscale also has one of the most active developer communities in the space.
Everscale DeFi development has been in incubation until recently and now it’s quickly ramping up for a full-fledged ecosystem. For DeFi to operate well you need bridges to other ecosystems, a native stablecoin, borrowing and lending markets, options, perpetual futures, spot and margin trading and more.
Let’s look at the quickly expanding Everscale DeFi landscape.
The new Broxus bridge allows one to move liquidity to and from any EVM supported blockchain as well as Cardano and Tezos; there is tonswap.io with various AMM pools–which are the main source of liquidity for the ecosystem right now–as well as a new borrowing and lending market on the horizon. The team will be introducing a launchpad which has over 14 projects already on the waitlist to be listed.
In parallel, Everscale has some very exciting announcements coming which will be soon shared with the community. The only thing that I can share at this point is that these announcements will be related to big well known names in crypto. The conclusion is that we are going to see more native assets on Everscale, more wrapped assets from other ecosystems, more projects listing, more trading, more lending and borrowing and much more DeFi activity in general in various shapes and forms–not to mention the native Everscale stablecoin will be minted.
Exchanges are powerful crypto engines. They are the real motors of the crypto economy. And decentralized exchanges or DEXs are the future. Bad design of most layer ones resulting at very low transactional speed has prevented creation of order books on DEXs. The ones that have created order books are running into various issues and limitations. Serum built on Solana was one of the first ones. Aside from Solana runtime limitations (btw, linear scalability and speed are two different things) there are multiple issues with Serum cross chain trades and its arbitration contracts which are written in ethereum.
Other DEXes like IDEX have tried creating an orderbook off chain however this design also has multiple issues: slow trade execution, high gas fees and network congestion. Avalanche also attempted to create its own DEX with an onchain limit order book. With 15K USD (at the time of writing) 24 hour volume we can judge the success of this project.
“Flex doesn’t have a matching engine at all, the matching is happening on the client side and the trade is immediately executed on chain.”
Flex, with its extremely fast on chain order book, is not going to suffer from any of these issues. With only 15 workchains it’s going to match the speed of centralized Binance. With 50 workchains it’s going to be as fast as BATs exchange. This is unheard of in crypto DEXs. Due to effective DeBots based design all the heavy processing is outsourced to the client. Flex doesn’t have a matching engine at all, the matching is happening on the client side and the trade is immediately executed on chain. In Everscale, on which Flex is built, every single address has a smart contract deployed to it. This allows for maximum parallelization. In Ethereum for example there is just one Ethereum RunTime in the entire network and while one smart contract is being executed nothing else can be done. In Everscale there are as many RunTimes as there are threads. There could be up to 256 threads in each workchain. Therefore multiple smart contracts can execute at the same time by different threads. This makes a crucial difference in DeFi which is smart contract intensive.
Flex has its own launchpad called Killer Whale Podcast which has already attracted 62 million EVERs of user funds for future projects to be listed on it. Holders of KWT tokens can vote for a project they like during a live podcast. Their vote essentially means their investment in the project.
In terms of performance we can expect from Flex 0.08 sec execution time for 80K trading pairs with 128 threads per 1 one shardchain. Basic trading functionality of Flex is already working and it’s in the testing phase. First version includes spot trading, trading view charting support, maker and taker order types, AMM pools support. Flex has also implemented an advanced form of user authentication which allows you to authenticate once and then just trade like with any centralized exchange without the need to separately authenticate each transaction.
In Q1-Q2 we will see limit order types, stop loss orders, margin trading and DAO voting capabilities. In the second half of the year perpetual futures, options, prediction markets, true NFT derivatives, volatility based products and other exotic derivatives are going to be implemented.
Flex DEX is set to take the central stage in the soon to be flourishing Everscale DeFi ecosystem. Just like with Serum various DEXes, lending and borrowing markets, options and perpetual futures platforms can be built on it utilizing its orderbook for liquidity. Developers interested in building on Flex can contact the team already to learn how to build products on top of Flex. Flex DEX business development team is working on securing partnerships with market makers and other liquidity providers.
See you on the other side — Ilia Frankstein
