Saturday, November 28, 2020

The Birth of Elastos DeFi

The Birth of Elastos DeFi

by Jeremy G

Edited by Kenneth K


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Several months ago, Elastos announced integration with blockchain oracle leader Chainlink. This relationship led to a Proof of Concept ELA/USD price feed and has onboarded other Chainlink Node Operators besides Vulcan Link. The ELA/USD price feed acts as a reliable oracle to help power a new stablecoin protocol built on Elastos in a few months.

From that time, much has been in development:

  • DAI will be available to be borrowed in return for ELA as collateral. This will allow Ethereum users to have an alternative borrowing solution on Elastos’ Ethereum Side Chain that has increased scalability, cheaper fees, and a more secure network than Ethereum’s due to its additional protection of more than 50% of Bitcoin’s hashpower.
  • In early August, the Cyber Republic Consensus passed a proposal to build Web 3 tools along with Filecoin integration into the Elephant Wallet. Then, on October 23rd, Elastos announced the FilDa Alliance, which aims to serve the needs of the Filecoin and Elastos communities with a suite of state-of-the-art DeFi tools. Filecoin miners face giant financial constraints with rewards coming in 180 days and having a required stake in FIL before mining. FilDa allows these miners to use an intra-ecosystem borrowing services via Elastos.
  • Along with lending tools, FilDa also provides users with interest generating mechanisms which allows leveraging value vested in their established holdings. FilDa is designed on Filecoin’s mining algorithm and economic model in order to help monetize miners. Read more about it in our previous article here. Enter Elastos Supernodes organized an AMA on Friday, October 30th featuring Sjun Song of Elephant and Sunny Feng Han, and we will be sure to cover that in the near future.

     

    A roadmap has just been released detailing three new DeFi Dapps on the horizon for Elephant Wallet:

  • A Uniswap clone, Tokswap, is an Automated Market Maker (AMM) platform that supports easy trading between any ERC20 and Elastos coins. Similar to Uniswap, Liquidity Providers earn transaction fees which will help improve low liquidity challenges. The Elephant Wallet team’s plan is to gradually introduce more assets onto the ETH Side Chain in order to build a more robust exchange, but more tests need to be done in order to verify the reliability of the ETH side chain. Perhaps new ELA projects with will be able to list on Tokswap first or use Tokswap as a place to reward liquidity providers with various yield farming incentives.

  • Quicksilver is a decentralized lending platform based on Ethereum’s Compound. “The value of Quicksilver is to turn slow moving assets into fast moving assets. At the same time, it can add money to the market like a bank, thereby promoting ecological development”, says Sjun Song, leader of Elephant Wallet. Users will earn rewards for lending out tokens. The platform looks to achieve superior liquidity from multiple assets in due time.

  • Shadow Tokens is a platform that achieves to connect assets on different chains. Specifically, this cross-chain asset bridge will enable ELA to bridge with Ethereum and Tron blockchains. “With ShadowTokens, ETH, TRX, and assets from their native blockchains will be mappable to Elastos, and ELA mappable to the Ethereum and Tron blockchains as well, thus enabling asset cross-chain interoperability”, as stated in the Defi Roadmap article. The team will also implement cross-chain calls in the future, which will allow applications to run on multiple blockchains.

Between a new stablecoin protocol, three DeFi platforms, and a tailor made Filecoin Defi protocol, Elastos DeFi ecological infrastructure is brimming with potential.

Jeremy
CR Press Senior Writer. Believer in the new Smart Web. In pursuit of true decentralization.