Those who are regular contributors on Hive may now be aware of the Hive-engine. It is a decentralized exchange where we sell our tokens like #cine, #pob or #leofinance. Those who wish to buy the stakes in the community tokens also use the decentralized exchange. In the hive ecosystem, hive-engine was a very important constituent which fueled the growth of the whole token and front-end ecosystem.
Now the community is moving towards tribaldex, another dex for hive ecosystem. It is necessary to understand the concept of decentralized exchange.
Source: Bing
What is DEX ?
Decentralized Cryptocurrency Exchange allows the users to execute the peer-to-peer transaction. They do not require any third party involvement.
Centralized Exchanges has a lot of issues associated. Therefore, most of the users prefer decentralized exchanges. The decentralized exchanges don't facilitate the trading of Fiat Currencies for Cryptocurrencies. Decentralized cryptocurrency exchange supports crypto to crypto transactions. Decentralized means no central authority holds any funds or wallets. Users use their wallets to transact. When a user buys crypto using DEX, cryptos get directly generated into the user’s wallet.
Decentralized exchanges work only on a single blockchain. Hence, for trading in Hive tokens, tribaldex or hive-engine is mostly used. Now they are also trying to bring in more currencies but since the blockchains are different they are converting these currencies to swaps. These swaps are like I Owe You. Where the swap holder has the right to convert his swaps to underlying currency. Such as swap.matic holder can convert his swaps to matic currency and transfer the same to matic wallets outside the hive ecosystem.
Since on the liquidity pool, DEX works systematically. The users create the liquidity pool that provides the two currencies for illustration DEC:BEE or SWAP.HBD:BEE.
The liquidity pool is created so that the users deposit both the coins by entering into a smart contract. Hence, it would become very simple to exchange both coins.
I am hoping #vyb comes out with their liquidity pool. These liquidity pools also known as diesel pools are providing extraordinary APR of upto 200% on certain currencies.
These are some features involved in the Decentralised Exchange which makes the same attractive for the investors.
Good to know about hive-engine but I believe hive dont really have a decentralised exchange. Though the features are similar hive-engine is controlled by one of the companies of big whale on hive
There is also a concept of HEX or Hybrid Exchange. May be you may want to elaborate on the same. I liked the way you have elaborated the concept of DEX.
Yes HEX is yet another topic to be discussed. I believe hive-engine can be probably called as hybrid as it combines the benefits of both DEX and CEX.
You described DEX really well, but Hive-engine is highly centralized. Unfortunately. I don't know about Tribaldex.
But don't get me wrong.
They are great and I'm using both.
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You are probably right. hive-engine is probably owned by a private company but operates like a DEX, it has all the features of a DEX.
I guess the diesel pools are quite an interesting feature of hive-engine and bee is native coin of hive-engine. So the currencies paired with Bee generally give very good APR for providing liquidity. You can also stake it to vote now
You are right. But some of the most profitable diesel pools are SWAP.HIVE: LASSECASH and SWAP.HIVE: WEED. These two pairs offer one of the best returns in the pool right now. May be you can try them both.
I am excited for the WLEO / RUNE pairing that will be coming this year (hopefully) to THORSwap. It will be a bridge from Hive-Engine tokens to everything THORChain has to offer.
With LEO, SPS and DEC, we are already bridged to Uniswap, sushiswap and pancake swap. All of these open up Hive users to a lot of options and liquidity and these DEX's offer Hive to their users (indirectly).
It is exciting.
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Thorchain is a classic example of the DEX where you will get a better APY on the assets like Ethereum and BUSD. The current APR is 44% for Ethereum and 50% for BUSD.
This is really an insightful information about cross-chain investments. I am personally struggling a lot to work with these cross chain platforms and bridges as its difficult to move the funds between these chains unless you really understand it
Ya, there is a lot to learn to confidently move funds through multiple ecosystems... but to seamlessly do it is very empowering. To be able to win DEC in a splinterlands game and send it to pancake swap and trade it for BNB (or whatever) is really empowering and good for the ecosystem. You really can play for BTC now (if that's what you trade your earnings into.
I read this. It sounds quite fascinating. If the #hive-engine tokens can be traded for BNB or btc then it would be really good development. I think there is announcement about #cine too about launching it on external exchanges
Ya, THORChain LP is in the works... (but it can alrady be done through LEO, SPS and DEC on Binance Smart Chain and Ethereum.) The more funds can access liquidity, the better for the ecosystem.
It would be cool to see cine move to external markets!
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Yay! 🤗
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