DeFi For The Next Billion: Maiar Exchange To Enable Internet-Scale Value Swaps, Global Accessibility, And Fair Community Distribution

Beniamin Mincu
Apr 09, 2021
3 min read

Tokenization enables global and immediate liquidity for virtually any type of asset. Through automatic appraisal, collateralization, and programmatic trading mechanisms, decentralized finance is about to blur the lines between what today we consider as differentiated markets.

The ability of any kind of value to become digital, liquid, instantly, and globally tradeable will give the world economy superpowers. Literally.

It is therefore immediately obvious that the underlying infrastructure powering value exchange becomes critical infrastructure for the 21st century.

The rapid evolution from stock markets, to centralized exchanges, to decentralized exchanges, powered by automated market makers, paves the way for a significant global improvement.

For this improvement to materialize and become widely adopted, a few essential elements are necessary:

  1. A powerful automated market maker - enabling an efficient programmatic peer to peer exchange between buyers and sellers
  2. An internet-scale and open infrastructure - enabling swift and inexpensive transactions at a global scale
  3. Intuitive user experience - enabling anyone to become an actor in the global economy
  4. Global and democratic community incentives, distribution, and governance

So where are we now?

Automated Market Makers built on Internet-scale infrastructure

The essence of current versions of automated market makers is best expressed through the constant product equation:

x * y = k

Based on it, if a swap pool owns some units of token x and some units of token y, it prices trades so that the quantities of x and y resulting after the trade, when multiplied, are equal to a fixed constant, k.

But current AMM performance could be significantly improved by rebuilding them on vastly more scalable architectures.

By reimagining an automated market maker on top of a highly scalable architecture that is high bandwidth, low latency, and inexpensive, the performance of the swap processes can be drastically improved. With significantly better performance, the scope of AMMs can be rapidly expanded, giving birth to new market opportunities.

Perhaps the most important growth vector we will see will come when intuitive simplicity and ease of use will enable tens of millions, hundreds of millions, and eventually billions of people to interact with these new technologies, facilitating simple and instant exchange, at scale.

Community distribution, incentives, and collaboration

Going beyond the product performance and UX: community distribution, incentives, and governance create the premise for an engaging bootstrapping process, incentivizing both immediate adoption and long-term contribution.

Putting each of these puzzle pieces together will create a compelling product, fueled by a rapid growth trajectory, taking it beyond the blockchain ecosystem.

Introducing the Maiar Exchange - internet-scale value swap for the next billion

The Maiar Exchange is the ultimate automated market maker, rearchitecting some of the key elements to build a product that can leverage the entire performance of the Elrond architecture, to offer global, near-instant, inexpensive transactions between an expanding suite of assets.

Furthermore, once live, the Maiar Exchange will be integrated into the Maiar app, offering a simple and intuitive interface that is accessible to anyone anywhere in the world.

To ensure rapid adoption cycles, open governance, and long-term contribution, the Maiar exchange will have a native governance token called MEX, enabling community-driven development and governance.

The token will be essential for the sustainable development of the Maiar Exchange and its governance. The governance process itself will kick off around 3-6 months after the platform’s launch, allowing sufficient time for MEX to reach a large number of holders.

Pioneering a fair and wide token distribution

The Maiar Exchange will feature the very first token of the Elrond ecosystem, with a fair launch, 100% distributed and owned by the community. The distribution of the MEX token will be made in a fully transparent manner, towards the community only, without any pre-allocations for team, advisors, investors, etc.

For a detailed overview on the Maiar economics please see the latest blog post.

Time frames, snapshots and reinforced hypergrowth

With the Maiar Exchange going live, a new economic engine is set in motion expanding the Elrond ecosystem. How large can this exchange become?

The Maiar exchange is tackling a hard trillion-dollar problem of global significance. Its ability to easily onboard hundreds of millions of users will rapidly grow it into one of the largest decentralized exchanges in the entire ecosystem.

Onboarding the next billion people will take resourcefulness, hardcore effort, and collaborative community contributions.

The Elrond ecosystem and community have grown tremendously during the last period, and with each of the DeFi 2.0 components, this growth will further accelerate significantly.

Elrond is live. Maiar is live. Staking is live. And the Maiar exchange is here.
Time to get your eGold ready. The snapshots are coming.

And with them, a new growth phase begins.

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Written by
Beniamin Mincu
CEO, Elrond Network