Image credit: source

  • Ethereum’s rival, EOS, has launched a DeFi platform in partnership with Bancor, called xNation.
  • The platform, which is based on EOS, will enable its users to form liquidity groups in order to receive part of the fees collected by the group in proportion to the contributed liquidity.

Ethereum’s rival, EOS, has announced the launch of a new Decentralized Finance (DeFi) platform. Through a cooperation with Bancor, EOS Nation has introduced xNation. The platform will allow its users to launch and fund liquidity pools for any of EOS’ tokens.

A liquidity pool, according to EOS Nation, is a smart contract that functions as automated market maker. Through these markets xNation users will be able to buy or sell tokens instantly through on-chain transactions and without the need for an order-book. Each trade requires the payment of a fee, but every pool needs an adequate level of liquidity so that the tokens price does not vary too much, according to EOS Nation:

Through xNation, anyone will have the ability to create a liquidity pool or fund it, so they will receive a portion of the fees generated by the pool in proportion to the amount of liquidity that has been funded.

This will improve the EOS DeFi sector in at least three ways. First, it will allow token deposits to generate additional income. It will increase liquidity for tokens that are part of the pools. It will increase the number of fees and trade volume for EOS and finally, the EOS community will have greater flexibility to trade EOS tokens. EOS Nation CEO, Yves La Rose, stated that xNation will be an important addition to increase liquidity in the EOS ecosystem. In addition, La Rose added:

This adds more DeFi into EOS. The more Decentralized Finance we have, the more arbitrage opportunity, the more bots we’ll have making different trades between different platforms.

Users should consider that tokens staked in pools are not risk-free. Pairs traded in the pools are susceptible to market volatility. Users will be able to generate profits as long as the accumulated rates are higher than the “non-permanent” ones.

It remains to be seen how the xNation platform will develop. As reported by CNF, the Ethereum DeFi sector has had some difficult weeks. In addition, it remains to be seen how EOS’ DeFi ecosystem will perform against the market leader Ethereum and whether users will switch to EOS.

Follow us on Facebook and Twitter and don’t miss any hot news anymore! Do you like our price indices?

Last Updated on

(Excerpt) Read more Here | 2020-04-03 14:17:04

LEAVE A REPLY

Please enter your comment!
Please enter your name here