Bitcoin may not have had the best week, but there’s plenty of others who did. With Theta Network, Harmony, Pundi X, BitTorrent, and Dent pulling in some gains for their holders this week. Most of the market has felt dead set on shaking out those weak hands lately. The influx of Stimulus money has turned out to be less of a factor than many thought as the markets remain sideways. Here’s to hoping for a more favorable week in the markets instead of a select few. This week we’ll be looking at the first of its kind Tri-DEX operating on Avalanche, Binance Smart Chain, and Ethereum called ZERO Exchange.
Introduction
ZERO Exchange is a decentralized protocol for automated liquidity provision on the Avalanche blockchain. With Avalanches wide range of upgrades in comparison to previous generation blockchains. This allows for ZERO Exchange to operate with high throughput and next to no cost to users by utilizing the robust Validator system in place with Avalanche. ZERO Exchange settles trades on its platform in an average time of less than a second. With transaction speeds per second reaching 4,500+ due to Avalanche ⅓ second block time. ZERO carries with it this sub-second block times with near-instantaneous transaction confirmation. Giving ZERO Exchange the potential to be one of the fastest settlement exchanges in the blockchain space. The ZERO Exchange Protocol focuses on realigning incentives for network participants by introducing revenue sharing and community-driven network effects to the ever-popular AMM model. ZERO Exchange aims to encourage arbitrage by existing on three blockchains and providing the greatest volume and fees for liquidity providers.
The ZERO Exchange Protocol works hard to prevent front running by processing transactions in the order that they are received. Because there’s no mining incentive to pay more gas, a block producer is removed from the incentivization of picking one transaction over another. Eliminating all concerns for front-runners operating on the network. In the current state, ZERO is operating as a forked version of Uniswap and carries with it every similarity we’re accustomed to. Liquidity rewards are offered in the Earn Dashboard and include pairings for a few assets across Avalanche, Binance Smart Chain, and Ethereum. This is enabled through the ETH-AVAX and BSC ChainBridge developed by ChainSafe. Cross-Chain Transfers are available on the platform making it the first Tri-Dex. But, the pairs are limited at this time and need a good bit of user finesse to manage around the cross-chain requirements of setting specific gas limits and having prior experience setting up Binance Smart Chain, and Avalanche Network on a Web3 Wallet like MetaMask. With ZERO fees and transaction times, this is limited to transactions that only take place natively on Avalanche. Transactions that need cross-chain functionality are subject to the fees required. In the case of Ethereum, these fees are too unsustainable to be used for cross-chain swaps. To do so a user must pay not only the greatest gas fee necessary but also a 4.99 AVAX fee. Which at the time of writing comes out to exactly $150 USD in AVAX alone for a single swap between Ethereum and Avalanche.
ZERO was launched with the community in mind, and this dictates their approach to governance as well. A community-managed treasury empowers token…
