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RE: Blocknet product enables atomic swaps as a solution to one of DeFi’s big security issues.

in LeoFinance5 years ago

Hi @nealmcspadden

I am also trying to unpack what this could mean to DeFi. In theory wrapping or tokening tokens like we do to create wrapped Bitcoin and wrapped Leo means someone else controls your Bitcoin/LEo. The proponents of Blocknet Atomic swaps point this out as a potential point of failure or vulnerability.

But everything has risk...
What I am trying to unpack is atomic swaps don't need liquidity pools, and all transaction fees go to Blocknet blockchain node providers who own block and get rewards for facilitating transactions in Block. This is "safer" in theory per Blocknet then swapping coins or providing Liquidity as a LP on Uniswap or Justswap. ## But getting paid in ETH is a pretty big incentive to contribute to Liquidity Pools on Uniswap and for a second layer coin like Leo with no exchange listings this seems to be a big boon to its development, popularity and brings more interest to its project.

I am not sure you can get all that from being a node provider on Blocknet. theres so much to learn and understand in this space. I still need to learn about Rune and understand how it fits into this diverse universe of trading.

@shortsegments

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Whether there is a pool or some other structure, someone has to be willing to trade with you in order to complete a swap.

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