To say that DeFi is growing would be an understatement. As things currently stand, DeFi platforms are gaining much more prevalence at a much faster rate than ever before. Reason for that? DeFi structure is inherently strong due to the absence of a centralized collection of data. This also makes it less prone to attacks from hackers. Combine this with a blockchain infrastructure, and you’ll get a strong and seamless order flow mechanism.
This is why the Ethereum blockchain is most sought after by most of the DeFi platforms. But with this tremendous reception, the chain hasn’t been able to keep up with its scaling layers, leading to a significant increase in transaction fees. Moreover, the Ethereum blockchain is very crowded, which isn’t suitable for new and upcoming DeFi platforms to compete with.
Since then, many blockchain platforms have arrived aiming to provide a better experience than Ethereum blockchain. Cardano is one of them.
Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It is a combination of pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
Cardano is also the go-to destination for massive flows of liquidity once the smart contracts are released. To accommodate the order flow towards the ecosystem in the most seamless manner, it is crucial to offer optimal, trustless order execution.
DeFIRE protocol aims to do this through a decentralized smart order routing engine built on Cardano for Cardano.
DeFIRE is a decentralized Smart Order Routing engine build on the Cardona Platform. The platform will route the orders placed on the platforms to the most suited DEX based on the order requirement.
The platform will also optimize the order execution quality (e.g. slippage and order failure minimization) by continuously assessing the quality of each trading pair and fees on each DEX and will also split the order into multiple legs and routes to the highest quality pool to ensure the most efficient execution of the order.
DeFIRE Platform will process both limit and market orders. It will be structured as a swiss based association.
The platform will comprise of two products:
- Limit Order Algorithm: Wherein limit orders can be placed with multiple set conditions like:
- Time-in-Force Options: Fill-or-Kill/Immediate-or-Cancel.
- Hidden Orders: Order submission to a dar or lit decentralized order book.
- Front Running Prevention: Front-running prevention algorithm through gas use optimization.
- Smart Order Routing: Orders can be submitted to the Smart Order Routing Engine.
- Guaranteed Prioritization: Orders routed to certain DEXs are granted guaranteed prioritization.
- Smart Order Routing Engine: based on the type of order placed, the platform will then route the order through one of its pre-selected sets of established and battle-tested DEXs. The engine can process both limit and market orders and has an advanced execution quality optimizer which will:
- Splits the order into multiple legs and routes to the highest quality pool.
- Uses proprietary algorithm for order path optimization in search for further improvements in execution quality.
- Further employs cheap internal matching for offsetting limit orders.
The project will be audited by Scalable Solutions and followed by a second audit by Quantstamp/CertiK.
A dedicated DeFi team executes the DeFIRE protocol at Changelly, run by Eric Benz, who has 4+ years of experience in blockchain and cryptocurrency. The team is majorly eastern European with strong programming experience.
- Maryam Mahjoub: Association Member
- Elliot Hill: PR advisor
- Alex Mascioli: Advisor
- Danish Chaudhry: Association Member
- Jakie Eini: Association Member
DeFIRE protocol’s key investors are one of the heavyweights in blockchain and DeFi industry:
- Moonrock: A Blockchain Advisory and Investment Partnership based in London and Hamburg.
- Crypto Lotus: A cryptocurrency hedge fund based out of the San Francisco bay area.
- AU21: A venture capital firm based in San Francisco, California.
- Spark: A full-service provider of technology consulting, software design and development services.
CWAP is the native token of deFIRE ecosystem. Staking CWAP allows users to receive referral rewards. Staking CWAP also allows pools to be eligible for order routing. CWAP token will also effectively act as a type of insurance against price fluctuation risk.
Tokenomics and vesting schedule
The total supply of tokens is 100 million, out of which 7.887 million tokens will be released initially. The rest of the tokens will be unlocked according to the vesting schedule. Along with that, the token allocation for each category is mentioned as well:
Vesting Schedule and unlock period is mentioned below:
An IDO on OccamRazer is planned where 175,000 CWAP tokens will be available. Softcap is placed at 87500 CWAP Tokens. The price for each token is set at $1.75. The maximum allocation allowed is $1000. The IDO will commence on 21st May and end on 28th May.
Plans for CEX and DEXs are yet to be finalized with the expected DEX listing on Uniswap or Balancer. The first phase of the project is expected to be launched by Mid-June.
DeFi systems are expected to grow at an even faster rate than now in the future. As more such systems prepare to appear in the current world scenario, the need for blockchain mechanisms combined with DeFi systems would rise tremendously. To make the experience smoother and better than before, a DeFi protocol automatically managing the order limits and allocating the best possible DEX would prove beneficial in the long run, which is what deFIRE protocol does. The concept has a lot of potential for making it big, and it’s safe to say that many protocols pretty similar to deFIRE would come up soon.