Dated June 30, Vechain (VET) left Ethereum harbor for its own through mainnet. Since then, series of glorifying developments had surrounded the enterprise focused blockchain technology, with a new one surfacing to disclose the launch of the first decentralized exchange for the cryptographic project.
According to an update released on Medium, today marks the unveiling of Vexchange decentralized exchange after three months of initial launch with simple swap service.
“Along with our users, have generated over 5,250 mainnet transactions, burning an estimated 245,000 VTHO in the process”, the exchange noted.
While the complete launch of the decentralized exchange is yet to be unveiled, Vexchange is at the moment in its beta stage.
Vexchange Introduces Liquidity Staking
Vexchange is making effort to transform the trading of Vechain (VET) by replacing most archaic means with modern ones. Liquidity pools is used by Vexchange in setting prices between two currencies rather than order book. With this, two reserves (VTHO/VET) are held in the market while they are presumed to have equal value.
“The prices moves with every trade, as users add and withdraw from the reserves. For example, a purchase of 100 VET would remove 100 VET from the reserve, while adding 1000 VTHO. The new price for VET would then be higher because the reserve is now holding less”, the release stated.
To mitigate volatility in price, users are implored to stake extra funds, and more liquidity will be provided for traders.
A Bounty For Liquidity Providers
Vexchange banks on liquidity provision. However, the exchange compensates the providers with incentives generated from the exchange activities, and at the same time grows its reserve sizes.
With the aim of buoying low swap fees and sufficient incentives for liquidity providers, Vexchange disclosed that it is striving to slash its swap fees.
The launch of liquidity staking before full trading service is in a bid to accumulate a base level of liquidity prior to kick starting full operation.
Vexchange Aligns Vision With Vechain (VET)’S
Vexchange offers financial tools that ensures the development of a competent and effective ecosystem on VeChain (VET). The software offered by Vexchange is fully decentralized and functional for both enterprises and retail users.
With the aim of proffering a major tool for huge scaling of VeChainThor ecosystem, Vexchange looks forward to seeing VeChain’s cross-chain asset infrastructure. Working with businesses and community member is another area the DEX exchange is focusing on to shape a better future.