Basics of DeFi and NFT
podle LCX Team · January 27, 2023
In light of the recent events, with the fall of unregulated crypto exchanges, investors are looking for safer and quick options to trade in. Call it a domino effect, but the recent market trend suggests that there has been an increase in the adoption of DeFi and NFT platforms.
What is DeFi?
Decentralized finance, or DeFi, is an emerging financial technology based on secure distributed ledgers similar to the ones used by cryptocurrencies. DeFi challenges the financial centralized institutions as well as the centralized exchange platforms (CEX) by empowering individuals to opt for peer-to-peer digital exchanges. Individuals hold money in a secure digital wallet, can transfer funds in minutes, and anyone with an internet connection can use DeFi.
What is DEX?
DEX or Decentralized Exchange, is a P2P (Peer-to-Peer) marketplace where crypto traders conduct transactions directly with one another. DEX has gained major traction recently as DEX facilitates monetary transactions that are not mediated by brokers, banks, payment processors, or other intermediaries.
Decentralized exchanges offer trades only between cryptocurrency tokens. It utilizes a computer algorithm known as “smart contracts” to function. But DEX did not provide consumers with liquidity for smaller tokens, and thus came DEX Aggregators, which provide better liquidity and pricing to consumers.
What are DEX Aggregators?
DEX aggregators are called Liquidity Aggregators. They are financial protocols that enable cryptocurrency traders to access a range of trading pools from a single dashboard. DEX aggregators rely on a complicated algorithm and take into account multiple factors before selecting the best possible provider for a specific token swap across the available platforms.
A DEX aggregator typically provides a better execution price than a single DEX. Aggregators are designed to help traders fill trades at the highest possible level across a variety of liquidity pools. As a result, for price-sensitive investors or traders, using a liquidity aggregator rather than a single decentralized trading platform makes sense.
Investors need not look further than LCX for their DEX aggregator needs. Fire Salamander, LCX DeFi Terminal 2.0, is the most advanced and completely decentralized trading platform in the DeFi space.Fire Salamander’s on-chain order routing smart contract automatically detects the best price across Uniswap v2, Uniswap v3, Sushiswap, Kyber, DeFi Swap by Crypto.com, Link Swap, MiniSwap, and SakeSwap.
Fire Salamander offers an optimized trading experience with simple Basic Swap and Pro Swap functionality, beautiful DEX charting, and our famous on-chain limit order functionality. LCX has recently optimized the LCX DeFi smart contract to lower gas fees, and integrated six new DEXes in Basic Swap, Pro Swap, Charts, and Analytics, followed by a UI-UX upgrade.
What are NFTs?
Non-Fungible Tokens exist on a distributed ledger or blockchain, which records the ownership of unique tangible and intangible assets such as a song, a digital image, a video, designer clothing, etc. Non-fungible means these tokens cannot be exchanged for one another; each one is unique.
To sustain the uniqueness of non-fungible tokens, NFTs might include ownership details for simple identification and transfer among token holders. Owners can even include metadata or attributes referring to the asset in NFTs.
Since NFTs are unique and haven’t been fully explored yet, LCX has taken a step forward in the crypto asset space with its own asset-backed unique NFT called Tiamond. Diamonds are here to stay and will always be a favorite of investors. Thus, LCX has combined the age-old love of diamonds with the new age technology of NFT to create Tiamonds.
Tiamond is an LCX product that is Non-Fungingle-Tokens (NFTs) and represents the ownership of individual and real-world diamonds. Tiamonds are developed with the ERC-721 token standard. There are plenty of benefits attached to LCX tokenized diamonds. A few of their features are that they can be traded and even redeemed, and a reward of TIA Tokens is attached to them that will be received by the Tiamonds owner over a fixed period of time.
Check out why you should invest in LCX’s Tiamonds!
To learn more about Tiamonds, you can visit our website and follow us on Twitter.
Conclusion
With everything that is happening with unregulated centralized exchange platforms, it is the moment for DEX and NFTs to shine. They are an interesting investment opportunity and have barely scratched the surface of the potential that they can offer. There is definitely more in store for these investment options in the future, and LCX is here to provide you with the best investment platform there is.
