The Mumbai-based crypto exchange WazirX, one of the biggest in India, recently announced it is developing a decentralized finance (DeFi) product in partnership with Matic Network, a blockchain scalability platform.
Automated market makers are algorithmic agents that make it easier to list and exchange cryptocurrencies without the help of an order book.
AMM-based decentralized exchanges (DEXs) like Uniswap, which enable running of openly accessible, on-chain liquidity pools for different tokens, have witnessed staggering growth in trading volumes over the past few months.
Lowering the gas
The exchange, however, has opted for Matic instead of Ethereum’s network, which is currently dominating the DeFi space. “High gas costs [transaction fees] and scalability on Ethereum are definitely concerns that made us choose Matic, which offers high speed,” Nischal Shetty, CEO of WazirX, told CoinDesk in a Telegram chat.
Fees are relatively low on Matic’s network. “Their Reddit proof-of-concept showed 3 million transactions at a cost of [a] mere $4 and the side chains have shown throughput of 7,200 transactions per second, which is very promising for the scale WazirX wants to achieve with its AMM-based DEX,” the exchange said in its blog post.
WazIrX, which was acquired by the global cryptocurrency exchange and blockchain ecosystem Binance last year, plans to launch the testnet of its AMM in September.
“The DeFi project is WazirX's initiative,” said Shetty, adding that “we are glad to have support from the Binance team. It's a huge advantage to be a part of the ecosystem.”
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