Introduction
For summers-and-winters, the cryptocurrency exchange market has been dependent on centralized exchange for functioning. They developed a good understanding and were completely unknown by the existence of a decentralized finance world. MoonDeFi is an Ethereum based decentralized exchange platform that permits its users to trade ERC 20 tokens with Ethereum on a chain with smart contracts, which eliminates the need for order books and intermediaries, as in the centralized exchanges. It is a unique kind of DEX called a token swapper.
What is MoonDeFi Protocol?
MoonDeFi is a protocol on the Ethereum blockchain that can be used for swapping ERC-20 tokens. Buyers and sellers are required to create liquidity for legal trading purposes. MoonDeFi is a cost-effective exchange designed with a low fee structure. The vital innovation from a protocol like MoonDeFi is to develop a user-friendly platform on which the users can easily swap the tokens without having to go through a convoluted exchange interface. It also allows anyone to become a liquidity provider on the platform.
Working Of MoonDeFi Protocol
A liquidity pool model was created on MoonDeFi by liquidity providers to facilitate trading without any centralized authority. Along with ERC20, all other native Ethereum tokens can contribute to the liquidity pool and earn rewards. Users can easily switch between ERC-20 tokens without the permission of a centralized authority or an order book. The MoonDeFi Protocol is entirely decentralized in nature. They don’t have liquidity pools for traders.
Elements Of MoonDeFi:
MoonDeFi inherits the best functionalities of Swap and Staking from top DeFi projects like Uniswap and Harvest finance. Being the upgraded version of these DeFi platforms, MoonDeFi owns the most outstanding features.
MoonDeFi has two main elements through which they can earn profits.
- Swap
- Staking
Types Of Users On A MoonDeFi Platform:
- Casual Users: Perform Swapping: Earn Tokens for performing swapping: Contribute in transaction fee
- Liquidity Providers: Perform Pooling: Earn Fees: Contribute in liquidity form
- Arbitrager: Perform Swapping: Earn Incentive by price spread: Contribute in the form of Price oracle and transaction fee
- Staking LP Token Holding: Perform Staking (Farming): Earn 30%-45% of LP tokens (annual percentage yield): Contribute in the form of stable interest rate and community growth
- MOON and other token holders: Perform Staking (Farming): token stakings and earn 30%-40% (APY): Contribute towards price stability and community growth.
How Can Users Swap Tokens On MoonDeFi?
MoonDeFi exchange is different from other decentralized exchanges. The model pricing mechanism called the “Constant Product Market Maker Model” makes it unique. Any token can be added to the MoonDeFi platform by funding it with the equal value of ETH. Thus, ERC-20 tokens can be used for trading.
Staking/ Farming On MoonDeFi:
Liquidity mining has been made available to the users by the innovative platform of MoonDeFi. The liquidity providers can receive the tokens once they contribute their coins to the pool. They can use these tokens to participate in the staking profit, which turns out to be highly lucrative. Rewards are distributed among the users who have deposited funds to the liquidity pool and joined this program.
MoonDeFi is capable of hunting down the most competent and trendy DeFi platforms. It embraces and optimizes the algorithms that can search for a lucrative and cost-effective community for the users. Thus, users can adopt a stable interest rate through farming.
The native token of the MoonDeFi platform is MOON. It has the highest interest rates. If a user stakes a coin or a token on the MoonDeFi platform, they can earn interest rates of about 30% to 40%. On the other hand, if they become a liquidity provider and stake their LP tokens, this interest rate earning can go up to 45%.
Advantages Of MoonDeFi:
- Decentralized and Autonomous
- Intensified Anonymity
- Open-source system
- High annual percentage yield
- Large community concern
- Potential growth
- Lower gas fees
- User-friendly interface
Conclusion:
IBT can help you develop a platform like MoonDeFi where you can reap a complete umbrella of all the DeFi platforms. It will also facilitate a transaction fee at 0.3% of the fee as a liquidity provider and a staking interest of 45% annually. With Infinite Block Tech, you can launch a MoonDeFi platform and embrace all the benefits mentioned above. What are you waiting for? Get started today!