Elrond has launched a 1 billion dollar liquidity incentive scheme to help them deploy its Maiar DEX DeFi platform faster. This is the largest DeFi incentive scheme to date, hence, a big step toward DeFi acceptance. It also goes beyond the crypto space’s present borders, into the mainstream. Maiar DEX will use its MEX token to fund the incentive. As a result, Maiar DEX will give 1.29 billion dollars in MEX tokens to its users. Users will provide liquidity in EGLD, MEX, and USDC tokens, with $282 million in the first month.
The initiative will begin on November 19, coinciding with the formal launch of the completely community-owned DeFi platform. So, it has already transferred ownership in the form of claimable MEX tokens to over 60,000 users.
What is Elrond?
Elrond is a piece of software designed to encourage a distributed network of computers to operate a smart contract platform. It focuses on scalability and cheap transaction costs.
Elrond positions itself to compete with major blockchains such as Ethereum and Zilliqa in the development of a decentralised application and cryptocurrency ecosystem.
It has two unique features-
- Adaptive State Sharding
- Secure Proof-of-Stake
Furthermore, the developers will use the Elrond Integrated Development Environment to design and launch customisable applications that mimic goods and services on its platform.
Elrond has its cryptocurrency, the EGLD coin. Elrond uses it to interact with applications, send transactions, and encourage network actors.
Also read: DeFi Solutions – Seeded Network
How Does Elrond Work?
Smart contracts, transaction settlement, and token issuance are a few of the capabilities available on the Elrond network, which is like other cryptocurrency networks. Developers will use programming languages, such as Rust, C, and C++ to create new programmes to offer a range of products and services.
The unique feature of Elrond is its design variants of sharding and proof-of-stake. Because of them, it can process around 12,500 transactions per second.
Sharding
Elrond’s transaction processing technique is ‘Adaptive State Sharding.’ It divides nodes into subsets to confirm transactions. After transaction completion, the shards broadcast them to the metachain, which settles them. The Metachain, Elrond’s central blockchain, is Elrond’s central database.
To avoid collusion among validators in each shard, one-third of the nodes confirming transactions in each shard reshuffle to a new shard every 24 hours.
Secure Proof of Stake
The Secure Proof of Stake (SPoS) governance system keeps the distributed network of computers running its blockchain in sync. It is crucial for Elrond to function.
SPoS, like regular PoS, protects the network, confirms transactions, and distributes created EGLD coins by machines running the Elrond software.
However, Elrond’s network is built of shards rather than a single chain. Elrond uses the SPoS consensus method to choose validating nodes to create blocks within a shard rather than the whole network.
Validators must examine the work of block producers and sync with other shards in the network to do a final settlement. Consequently, these contributors get EGLD tokens after a batch of transactions enters the Elrond blockchain.
What is the Maiar Exchange?
The Maiar Exchange is Elrond’s DEX AMM Platform. It is the first of its type to run on a sharded blockchain architecture. The Maiar DEX is a community-owned platform. It will bring DeFi adoption to an internet-scale, combining great UX, simple design, scalable infrastructure, and appealing incentives.
Maiar DEX audits and formalises its smart contracts using Runtime Verification. Consequently, the platform has been stress-tested at several public events. Hence, proving its performance and capacity to grow even under the most extreme conditions. When combined with the Maiar App, the Maiar Exchange’s compelling UX establishes a strong new standard that will drive DeFi adoption.
Way Ahead
With this large incentive scheme, Elrond hopes to develop one of the strongest and fastest liquidity mechanisms in the sector.
After the initial month, they are planning an incentive campaign to boost adoption. Accordingly, it will target users of the ecosystem’s main DeFi platforms, who will also be able to claim MEX tokens proportional to their activity involving goods like Uniswap, Pancake Swap, or Sushi Swap.
Also read: Bitcoin Latinum Now Listed on HitBTC
