Place/Date: – May 23rd, 2022 at 2:28 pm UTC · 4 min read
Source: Calyx Token
DeFi tokens are from ecosystems that want to bring decentralized finance to the masses via a connection of decentralized applications and projects. Examples of such tokens are Terra (LUNA) and THORchain (RUNE). Calyx Token (CLX) is the native token of the CalyxSwap ecosystem that seeks to solve the problem of an adequate liquidity pool in the decentralized financial system.
Decentralized finance has gained traction in the cryptocurrency market and there are various tokens performing well in the market. With a decentralized financial system, there are no taxes or expenses from middlemen as the process of exchange or trade is determined by two users that pass the requirements of a liquidity pool.
Despite the concept of establishing a decentralized financial system, many of the tokens such as RUNE and LUNA are still listed on centralized exchanges. These subject the tokens to security risks and expenses in trading them. CalyxSwap seeks to provide a system where all liquidity sources aggregate on a single network to facilitate a secure, fast, and affordable exchange.
How Does the Calyx Ecosystem Compare to a Defi Ecosystem Like THORCHAIN?
The aspirations of the Calyx ecosystem to a decentralized financial system are similar to that of THORChain. THORChain also wants to provide a decentralized and autonomous cross-chain liquidity network. It does this by providing a network of public THORNodes and ecosystem products.
In contrast, the Calyx ecosystem will be making use of a single system known as the CalyxSwap to bring together liquidity pools. The CalyxSwap will ensure sufficient liquidity from the ones it pulls from top blockchain networks hence reducing costs and promoting fast trade. It would also give power to token swaps and native tokens of a project to gain utility.
CalyxSwap will consist of two major components including the liquidity providers and the traders.
Liquidity Providers
The liquidity providers are grouped into four types knowns as passive liquidity providers, professional liquidity providers, token project liquidity providers, and innovators. The roles for each are distinct and incentivized as they contribute the ERC-20 tokens to common liquidity pools.
The passive liquidity providers in the ecosystem have the role to invest their assets to get an accumulation of trading fees as a reward. Professional liquidity providers have the role to make markets and develop tools and strategies to maintain their liquidity positions across all Defi projects in the ecosystem.
Token project liquidity providers are to create a liquid marketplace for CLX so it can undergo trades and trigger interoperability with other Defi projects through integration with CalyxSwap.
CalyxSwap is permissionless and anyone can become a liquidity provider by contributing an equal amount of underlying tokens in exchange for liquidity providers tokens.
Traders
The traders in the Calyx ecosystem will have the chance to swap Defi tokens for another by paying a small percentage of fees that’ll go to liquidity providers as the rewards for providing liquidity. Like the providers, traders are of three types including the speculator, the bot, and the user.
The speculators have the job to use a variety of tools and products within Calyx to trade tokens through liquidity gotten from the CalyxSwap protocol. The bot will equalize the prices across token markets to keep the ecosystem fair. Lastly, the user acquires tokers from CalyxSwap for use in projects and decentralized apps.
Traders also have the incentive of a fee for a specific pool as they trade on the Calyx protocol. CalyxSwap uses a flexible trade routing to bring together liquidity from various sources to let the trader get the best rate for any token swap on any supported blockchain network.
Conclusion
Calyx ecosystem has well-laid out plans to solve the liquidity pool problems plaguing the decentralized financial system. These plans are inclusive of every Defi enthusiast and as the platform thrives, so will its native token CLX. Undoubtedly, these tokens have the potential to also do exceedingly well in the market.
Learn more about Calyx Token: Website, Presale, Telegram, Twitter, Instagram.
Source: https://www.coinspeaker.com/calyx-token-surge-following-terra-thorchain/