For ages, the cryptocurrency exchange market has relied on centralized exchanges for their functioning. They had a good rapport between them and were happy to embrace services like fast settlement mechanisms, high trading volumes, and a continuous effort to improve liquidity on the exchange platform. They were unconscious about the fact that a parallel world has been built which is called a decentralized exchange (DEX).
MoonDeFi is an Ethereum based decentralized exchange platform. It allows its users to trade ERC 20 tokens with Ethereum on a chain with the help of smart contracts, which eliminates the need to order books or 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, designed exchange with a low fees 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.
Traders are facilitated with the opportunity to exchange Ethereum tokens on MoonDeFi platform. There are no authentication and verification issues, so anyone can lend their cryptocurrencies in the liquidity pool of exchanges and earn a reward. This is done with an equation that determines and balances the value based on actual demand.
How Does The MoonDeFi Protocol Work?
MoonDeFi is a marketplace where liquidity is maintained automatically. No centralized authority is required to complete the transaction. MoonDeFi acts as an exclusive place for any exchange, whether it is a token exchange or a trading platform.
A model called liquidity pool had been created on MoonDeFi, by liquidity providers to facilitate trading without any centralized authority. Along with ERC20, all other native Ethereum tokens can be used to 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. MoonDeFi Protocol is wholly decentralized in nature. They don’t have liquidity pools for traders.
Elements Of MoonDeFi:
MoonDeFi has two main elements through which they can earn profits.
- Swap
- Staking
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.
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
- Arbitrageur: 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.
For example, if a user wants to exchange in return for a Token X, then the users need to launch a liquidity pool. For creating a liquidity pool, they need $10 worth of Tokens X and $10 price of Ethereum. With these on board, the users can effortlessly become a liquidity provider.
If an exchange has its in-built smart contract and liquidity pool, it can allow anyone to trade tokens or contribute towards the liquidity pool. The users can earn the liquidity provider fee of 0.3%.
Staking/ Farming On MoonDeFi:
Recently, liquidity mining has been made available to the users by the innovative platform – MoonDeFi. The liquidity providers will receive the tokens once they contribute their coins to the pool. Liquidity providers can use these tokens to participate in the staking profit. These staking programs turn 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 platform. 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, then 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, then this interest rate earning can go up to 45%.
Latest Statement By MoonDeFi:
- At present, airdrop & bounty and marketing programs are launched with rewards worth up to 10 million MOON.
- 10 million MOON is equivalent to 10 million USDT.
- Parties interested in MoonDeFi are asked to follow the airdrop bot and write blog content or videos about the project.
- Each participant will get a reward of up to 150 MOON which is equivalent to 150 USD.
MOON Token Sales Details:
Symbol: MOON
Token Type: ERC-20
- Pre-Sale between 3/12/2020 to 31/12/2020: 8,000,000 MOON- Price: 0.25 USDT
- Public Sale: Round 1: between 1/1/2021 to 31/01/2021: 12,000,000 MOON- Price: 0.5 USDT
- Public Sale: Round 2: between 1/2/2021 to 28/2/2021: 12,000,000 MOON- Price: 0.75 USDT
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:
So precisely, MoonDeFi is a more sort of the whole genre of all the DeFi platforms at a transaction fee of 0.3%. The users can get 0.3% of the fee being a liquidity provider and staking interest of 45% annually. With Cryptocurrency Exchange Script, you can launch a MoonDeFi platform and embrace all the benefits mentioned above. Why wait? Get started today!