The Future of DeFi: Mooniswap Joins NEAR to Boost Scalability

Mooniswap Makes Waves on NEAR

In a groundbreaking move, the Mooniswap decentralized exchange protocol, developed by 1inch, is set to become the first Ethereum DeFi protocol to establish its presence on the NEAR smart contract platform. The announcement came as a surprise to many, highlighting a promising evolution in decentralized finance.

A New Era of Scalability

NEAR, renowned for its superior scalability compared to Ethereum, offers a streamlined, sharded architecture that allows for efficiency and innovation. What’s more, the NEAR environment operates differently than others like Polkadot or Cosmos, using a single sharded chain instead of separate blockchains. This leads to easier development opportunities for protocols keen on building within a familiar framework.

NEAR Rainbow Bridge: Transferring Assets

As the Mooniswap protocol transitions to NEAR, users will enjoy the benefits of NEAR’s Rainbow Bridge, which allows Ethereum tokens to flow seamlessly onto the new platform. However, it’s important to note that liquidity pools will remain independent, meaning users won’t be able to swap tokens across the two networks just yet.

Innovative Features of Mooniswap

Mooniswap employs a unique mechanism that leverages delayed virtual prices to thwart the infamous front-running issue seen in decentralized exchanges. Instead of enabling arbitrage traders to capitalize on price differences instantly, Mooniswap introduces a gradual price adjustment over a five-minute period. This clever approach mitigates impermanent loss and makes trading a fairer game for all users.

Future Plans and Innovations

Sergej Kunz, CEO of 1inch, expressed enthusiasm about the scalability tech found in NEAR, stating that they will be able to experiment with sharding and be well-prepared for Ethereum 2.0’s arrival. This partnership marks significant progress in the quest for improved performance within DeFi ecosystems, as 1inch not only plans to port Mooniswap but also intends to implement its Pathfinder aggregation algorithm.

The Race for DeFi Dominance

As demand for DeFi solutions grows, many developers are exploring alternatives to Ethereum in light of recent scaling challenges. Although some blockchain protocols have made headway, the race to dominate the DeFi landscape is just beginning. With numerous scaling solutions slated for release in 2021, the ongoing adaptations will be critical in shaping the future of decentralized finance.