{"id":3401,"date":"2021-01-11T18:41:43","date_gmt":"2021-01-11T13:11:43","guid":{"rendered":"https:\/\/blockchainappfactory.com\/blog\/?p=3401"},"modified":"2022-09-13T13:15:00","modified_gmt":"2022-09-13T07:45:00","slug":"develop-and-launch-a-moondefi-like-protocol-with-our-proficient-developmental-solutions","status":"publish","type":"post","link":"https:\/\/www.blockchainappfactory.com\/blog\/develop-and-launch-a-moondefi-like-protocol-with-our-proficient-developmental-solutions\/","title":{"rendered":"Develop and Launch a MoonDeFi like protocol with our proficient development solutions"},"content":{"rendered":"

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The DeFi scenario<\/strong><\/span><\/p>\n

Ever since the initiation of Decentralized Finance, the market has been at an all-time high. The latest statistics show that there has been an exponential growth of DeFi assets by around 10 fold compared to the previous years. There are a wide array of protocols, decentralized exchanges, and dApps in the DeFi sector, offering a myriad of services to those interested in investing, trading, and borrowing. In this ever-evolving and innovative landscape, a new protocol or rather decentralized exchange platfor<\/strong><\/a>m has risen, offering never before seen functionalities in the DeFi space – MoonDeFi.<\/span><\/p>\n

What is MoonDeFi?<\/span><\/h2>\n

MoonDefi is a trustless and highly decentralized financial structure predominantly notable for two functions – Swapping and Staking, for which users receive benefits. Built on the Ethereum platform, users mostly swap ERC-20 tokens. With this protocol, buyers and sellers need not worry about creating demand in the protocol. The protocol has been designed intuitively to allow automatic balancing of value depending on the demand present via an equation. Liquidity is created in the protocol and automatically without depending on the traders. A feature that sets MoodDeFi apart from standard exchanges is the very low fee structure – a rarity in the DeFi spectrum.<\/span><\/p>\n

The inner workings of the MoonDeFi protocol<\/span><\/h3>\n

MoonDeFi is an automatic liquidity marketplace, meaning unlike other centralized and decentralized exchanges, there is no necessity to create liquidity separately. Order books and centralized authorities have been made obsolete with this protocol, allowing users to smoothly swap between ERC-20 tokens. Traders utilizing this platform can exchange Ethereum tokens on it, including the native ETH ones, and they also have an option to provide liquidity to the protocol and collect fees for that service, the only requirement being an Ethereum address. MoonDeFi holds the title as the only protocol in the DeFi space that creates its own liquidity (automated liquidity).<\/span><\/p>\n

Swapping tokens on MoonDeFi<\/span><\/h3>\n

As mentioned earlier, the MoonDeFi platform is known for the user\u2019s ability to swap tokens without the need for buyers and sellers to create any demand. This swapping is done efficiently by employing a model called the \u201cConstant Product Market Maker Model.\u201d This is a mechanism that allows the protocol users to begin swapping. The process goes like this –<\/span><\/p>\n