17 Nov 2020 #DFI.Money
As many projects have already come and gone, the hype we saw this summer is settling down nicely and now that everyone gets accustomed with all possibilities DeFi brings to the table, new innovations set in. We’re entering a stage of development, new ideas and even more possibilities to come to light.
One of the main issues with swap trading on AMM’s (Automated Market Makers) for instance, are the high ETH gas fees involved. With the exponential growth we’ve seen in the DeFi sector, ETH gas fees have also increased. The complexity of AMM exchanges requires many transactions to do multiple hops through smart contracts and can sometimes create situations where the costs of executing the trade are unprofitable.
While there’s not much that can be done directly to change these costs of doing business on Ethereum, BlingFinance came up with a solution to go around them through an alternate blockchain.
BlingSwap is a decentralized AMM exchange that is currently being worked on on the Ethereum rinkeby testnet. It’s already available to the public, do keep in mind though that not all functions are fully functional yet.
The team behind Bling is planning to port or bridge BlingSwap from the Ethereum blockchain to the FantasyGold Core blockchain, basically serving two blockchains at the same time. Traders on BlingSwap will essentially have the option to choose whether to conduct their usual business on Ethereum or FGC. The latter providing the same services and possibilities, but at a fraction of the cost.
A simple “wrap on, wrap off” principle will be executed on Ethereum, which you still need to pay gas for in ETH, but in between those two, all transactions you perform on the FGC chain will be virtually free of charge. Saving heavy traders, farmers etc a hefty sum in gas fees. When people think about innovation, they usually do so in the extend of milestones. Huge, world changing ideas that you can only dream of. Innovation is mostly happening though by tackling one small issue at a time. While a simple cost-cutting idea might not seem like a very juicy story, it could very well be just the first step towards a whole new cross-chain trading environment. A whole new world.
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