We recently launched the AllianceBlock DEX on Energy Web Chain’s Mainnet! You can check it out here.
In a previous article, we have discussed our vision for the DEX, its part in our end-to-end DeFi infrastructure and our launch on Energy Web Chain. In this article, we will describe the plan for the staged launch of the DEX and the short-term roadmap setting up what comes next.
The DEX will be launched in stages, building on top of previous releases and listening to feedback and usage data from retail users and our community. We share the key areas and priorities that we will tackle after the initial launch on EWC Mainnet. We welcome your feedback, comments and suggestions as we continue the launch of the DEX.
Bug Bounty
As part of the launch on EWC, we are also relaunching our Bug Bounty Program for the DEX on Mainnet. We have received valuable and constructive feedback from our community during the Testnet Bug Bounty that we launched last November. We now want to continue this program and offer additional bounty as we launch on Mainnet.
Previous participants in the Testnet bounty who will receive rewards will get more information in the coming weeks. We will be sharing the mechanics of the Mainnet Bug Bounty in a separate blog article coming soon.
Tokens and Pools
We are launching the DEX on EWC with support for three tokens initially:
- AllianceBlock Token (ALBT)
- Energy Web Token (EWT)
- USD Coin (USDC)
With this, we are also launching two pools:
- ALBT/EWT
- EWT/USDC
As we add support for more chains, we will be adding more tokens and pools. Swaps performed between ALBT and USDC are also possible, carried out in two steps that take place seamlessly in the background.
Integrations with AllianceBlock Solutions
As part of the first phase of the launch, DeFi Terminal will be adding support for Energy Web Chain. This integration enables projects on EWC to create their pools with the DEX and then launch liquidity mining and single-sided staking campaigns. We will also enable listing liquidity mining and single-sided staking campaigns from the DeFi Terminal directly in the DEX in a future update. This integration between DeFi Terminal and DEX is the first true integration across two modules in our ecosystem. It will serve as a foundation for the future developments of all solutions in our end-to-end infrastructure.
In the coming months, we will also be integrating TIDV (AllianceBlock Trustless IDentity Verification), which would enable the DEX to support compliant pools. As we’ve shared previously in this article, this will unlock more options and opportunities for retail users while still giving them control of their data and protecting their privacy.
Support for More Chains
Supporting multiple chains is an essential part of our strategy to promote the wide adoption of the DEX. The first phase of the DEX launch is deploying on Energy Web Chain Mainnet. In the coming months, we will be adding support for Polygon and Avalanche, BNB Smart Chain and Moonbeam, Hedera, and then Ethereum. Potentially, we can also support all networks that will be supporting ink!
In November, we shared the whitepaper for the automated market maker we developed in-house and how it can reduce impermanent loss via a novel approach of coupling two AMMs to balance out the potential losses.
However, this requires additional calculations that would incur higher gas fees than a regular AMM transaction on an Ethereum-based DEX. If we launch on Ethereum first, this will be a costly experience for retail users, even just for trading or swapping.
We have identified a layer two solution that will enable us to perform the calculations cost-effectively. We’re still planning this, and this will take significant development work. Please stay tuned to our channels to get the latest updates.
However, we have a great opportunity to drive adoption of the DEX on Polygon and Avalanche when we launch on these networks. They are two of the fastest-growing networks with healthy project and developer communities. We are already supporting these networks in the DeFi Terminal, Bridge, and Fundrs (on Testnet, and Mainnet when it launches). Once the DEX supports these chains, projects and developers could leverage AllianceBlock’s solutions, from liquidity mining and single-sided staking to capital raising on an interoperable, blockchain-agnostic, integrated technology platform.
With our partners at Supercolony, we have developed the DEX (and Fundrs) using ink!, a next-generation smart contract language solution that’s gaining adoption on Polkadot’s parachains. We are proud to share that the DEX and Fundrs are the first projects to be entirely written in ink!. With the DEX release on Mainnet, we are among the first (if not the first) to launch a commercial product built entirely with ink!. This also means that we can support networks that support ink! in the future, including the network of our partner peaq network and other parachains such as Astar and Acala.
Deployment of Bonq Protocol and Collateralization
Bonq protocol will be launching on Mainnet in Q4 2022 and will be utilizing key functionalities from the DEX. Once launched, we will use Bonq to launch the second phase of the DEX Incentivization Program. This allows us to offer BEUR, a stablecoin, as a reward for using the DEX.
The phases of the Incentivization Program, its mechanics, and the tokenomics for allocating the 100M ALBT will be discussed in a separate blog article.
Single-Sided Liquidity Provisioning (SSLP)
The integration of SSLP into the DEX and the DeFi Terminal will open new ways for users to add liquidity to their favorite platforms while increasing the utility of ALBT. SSLP is a chain-agnostic protocol that will enable DEX users to provide liquidity with a single asset instead of two or more, as in current liquidity provisioning models. We have discussed the protocol at length in a previous article, which you can check out here.
We are excited to share more information about SSLP in the coming months, such as how we are utilizing the NFT Protocol to create a fully on-chain order book and how we are integrating BEUR to enable SSLP.
Dynamic Weight Allocation
Dynamic Weight Allocation enables the DEX to adjust the weight in pools depending on the level of liquidity in the pool. This enables the DEX to adjust the weight dynamically in order to better reduce IL without impacting slippage.
Vault, Orchestrator and Strategies
The Vault Orchestrator will provide a framework to implement DeFi strategies that will be automatically executed based on parameters. This is a layer that could be deployed on top of any DEX but will be first deployed on ours.
Whitelisted Pools
With the deployment of the compliance layer on the DEX, we can support different categories of pools depending on KYC requirements set by the pool creator: full institutional pools that would require the strictest KYC and identity verification; whitelisted pools that accept both institutional and regular retail providers; and permissionless pools, which are the typical kinds of pools we usually see on decentralized exchanges.
This will allow us to support a wide range of retail users, from those who wish to keep their privacy and identity intact to those who want to participate in institutional pools and are willing to provide their private data and undergo identity verification. KYC through TIDV is not a requirement for using the DEX, and even so, TIDV will allow you to take ownership and control of your data.
SDK
The release of the DEX SDK would enable developers to take advantage of the features and functionalities that power our DEX and integrate it into their solutions. We also previously communicated in our 2022 roadmap that we are also releasing the DeFi Terminal SDK and the Bridge SDK. With these SDKs, developers can build robust solutions utilizing the underlying protocols that power our solutions, such as the Cross-Messaging Protocol for porting on-chain data and the upcoming SSLP for providing liquidity with a single asset. These SDKs lays down the infrastructure for any DeFi developer and empower them for rapid development and growth in our ecosystem.
Next Steps
In the previous blog article, we have shared our vision of the DEX as well as how it will play a part in our end-to-end DeFi infrastructure. In the next articles, we will be outlining the phases of the DEX Incentivization Program, the mechanics and token economics for the allocation of the 100M ALBT in Bonq.
You can check out the DEX now, and share your feedback in the upcoming Mainnet Bug Bounty. We’ll be sharing more news about that in the next few days, so stay tuned. We encourage everyone to be part of our development process and send in your questions and feedback on our community channels and tag them with #AllianceBlockDEX.
Stay tuned for more announcements about events and AMAs regarding our launch, and we hope to see you on Telegram and Twitter!
About AllianceBlock
AllianceBlock is bridging the gap between decentralized finance and traditional finance, by remedying issues that exist in both spheres and linking them more closely together. They see the future of finance as an integrated system in which the best of both worlds can work together to increase capital flows and technological innovation.
Building this future by bridging traditional finance with compliant, data-driven access to new decentralized markets, DeFi projects and ecosystem-scaling tools such as funding and interoperability. As such, they are building a next-generation financial infrastructure that aims to provide regulated financial entities around the world with the tools they need to seamlessly access the DeFi space.
You can also find us on:
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