Demodyfi: The Cross-Chain AMM DEX Built on Moonbeam and Polkadot
PRESS RELEASE. At a time when Ethereum network fees continue to skyrocket, rendering many defi applications unusable, a renewed focus on the scalability and interoperability that the ecosystem so desperately needs is required.
The Demodyfi protocol seeks to resolve this by developing an AMM (Automated Market Maker) that goes beyond the limits of current Ethereum DEX applications, delivering a more efficient and cost-effective multi-chain solution fit for the future of decentralized finance. So how does it work?
Leveraging Polkadot’s Advanced Substrate Technology and Moonbeam’s Parachain Interoperability
Demodyfi is the first AMM for Moonbeam, attracting liquidity from parachains using Polkadot’s advanced Substrate technology.
Moonbeam provides a smart contract platform using the Substrate blockchain framework to integrate with the security of Polkadot’s relay chain – a blockchain of blockchains.
As such, the Demodyfi protocol utilizes Moonbeam’s parachain for smart contract interoperability and the Substrate blockchain framework as a fundamental layer. This combination provides compatibility with both Polkadot and the Ethereum Virtual Machine (EVM) to access liquidity across the existing defi ecosystem and provide users with all their defi needs in one place.
The result is a next-generation dynamic AMM DEX that extends its defi functionality further, becoming a permissionless one-stop cross-chain asset market. By delivering both pools and cross-chain swaps through asset bridges and parachain interoperability, Demodyfi can provide higher throughput and lower-cost transactions while staying connected to the Ethereum network and other blockchains, optimizing liquidity. Users will be able to trade and manage multiple non-custodial assets from the DEX, with unified accounts meaning they can easily swap between wallets like Metamask and Polkadot.js.
The Demodyfi ecosystem, therefore, opens up several key features including:
- Multi-Chain Flash Swaps
- Multi-Asset Yield-Generating Liquidity Pools
- NFT Cross-Chain Lending and Flash loans
- Simple Token Deployment (ERC20 & ERC721)
The primary goal of the Demodyfi ecosystem is to incentivize user behavior by leveraging the interoperable and scalable functionality of Moonbeam and Polkadot to reach users and assets on other blockchains.
The deflationary DMOD token will power this ecosystem, providing a bridge to the broader defi space and enabling lower transaction fees, faster confirmations, more efficient liquidity, and the improved functionality of the Demodyfi platform.
DMOD is designed to incentivize and reward token holders using the Demodyfi protocol by delivering the following benefits:
- Fee Discounts – High fees within Ethereum-based defi applications are a barrier to entry for many users. In addition to the low-cost transactions made possible with Demodyfi’s multi-chain architecture, DMOD holders can benefit from further discounts when trading on the platform.
- Staking Rewards – A percentage of the fees generated from Demodyfi traders will be used to purchase DMOD tokens from the market and redistribute them as rewards to DMOD holders, proportional to the amount staked.
- Token Burns – In a similar vein, 10% of the fees collected by the Demodyfi protocol will be used to purchase DMOD from the market and burned. This enforces the deflationary nature of the token, with the reduction in supply to the benefit of all holders.
- Reduced Slippage – In contrast to platforms like Uniswap, the Demodyfi protocol implements off-chain data with mid-market price, the staleness of that price, and the historical volatility, reducing slippage and saving trading fees for users as a result.
- Liquidity Mining – Demodyfi enables users to mine DMOD by providing liquidity and trading on the platform, which can then be used to access Demodyfi discounts and staking rewards or deployed elsewhere in the defi ecosystem.
- Governance – DMOD also allows stakers to participate in future decisions to improve the parameters of the protocol and distribute tokens as a reward for contributions made.
The upcoming Demodyfi IDO (Initial DEX Offering) is set for June 10 on BSCPad. There will be 1.2 million DMOD made available in the sale at $0.25 per token. Those wishing to participate can follow a simple whitelisting procedure to qualify, after which a randomized draw will select the users approved for the IDO.
In the meantime, you can soon start with our testnet on Moonbeam Alpha before the mainnet launches in Q4.
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