Forward-Thinking Crypto Exchange May Look To Integrate The Most Prevalent DeFi Protocols

Photo by Chronis Yan on Unsplash

2020 is undoubtedly DeFi’s breakout year. In that short time, we’ve seen a significant increase in decentralized versions of traditional financial services that support autonomy, removing the need for central authorities, and creating a peer-to-peer financial network. In addition, DeFi is one of the biggest boons to centralized exchanges, which has provided a steady stream of decentralized applications to deliver much-needed liquidity. With the DeFi market poised to become an integral part of the financial industry of the future, exchanges like KuCoin find ways to co-exist and strike while the iron is hot.

As early as 2018, when the DeFi concept was proposed, KuCoin has listed many high-quality DeFi projects, which covered almost all categories of the DeFi ecosystem, including decentralized lending, DEX, stable currency protocols, etc. Current promising DeFi projects on KuCoin includes LINK, AMPL, COMP, MKR, KNC, LUNA, AKRO, and etc.

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Prior to the exchange’s recent launch of the DeFi Trading Board which has been designed for users to have more intuitive and convenient DeFi trading, KuCoin launched the “KuCoin Choice Community Vote (DeFi Session)” to further support some of the most influential startups in the DeFi world. Decentralized finance (DeFi) is increasingly prominent in terms of bridging the gap between centralized and decentralized entities. In this context, KuCoin supported a project that could help bring its centralized liquidity to the DeFi community.

Image from KuCoin

Orion (ORN), a liquidity aggregation protocol, was successfully listed on KuCoin via the Choice Community Vote event. Orion is building on decentralized technologies in the most critical parts of the system like custody and final settlement while pulling liquidity from the major players in market — centralized exchanges.

With the goal of Orion Protocol solving DeFi liquidity problems by aggregating the flows of mainstream centralized exchanges, both sides also reached a deeper cooperation:

KuCoin becoming a founding broker on the Orion Network.

Image from Orion

This partnership is mutually beneficial. Particularly fruitful to KuCoin, it will offer several decentralized solution to some of its centralized operations. This partnership aims to address their common goal of bridging the gap between traditional finance and DeFi.

Staking ORN on Pool-X (KuCoin)

Image from KuCoin

With the Pool-X platform becoming the core node of Orion, KuCoin have also launched ORN staking service on Pool-X to further support Orion’s on-chain governance and nodes building. Similar to BitMax, users will receive staking benefits on a daily basis. The rewards are a bit higher though — 40.96% = 39% (Annual yield of the token) + 1.96% (Annual yield after converting POL to ORN). Pool-X has a slightly higher minimum requirement, as 10 ORN is needed. Not the biggest difference, but getting a much higher reward is something to take into account.

What are the advantages of DeFi Staking on Pool-X?
Nice and easy:
To partake in Pool-X DeFi Staking, you don’t need to handle private keys, obtain money, make transactions or undertake other complex tasks. The one-stop service provided by Pool-X allows users to get lucrative rewards without having to hold a wallet on the chain.
Safe: KuCoin chooses only the industry’s leading DeFi projects to be added on Pool-X and tracks the DeFi network in a timely manner as it is working to mitigate the risks associated with those projects.
High Yields: Pool-X ensures that users will receive the highest returns possible in the best possible way, while maintaining the same degree of risk.

Arguably the biggest hurdle that the DeFi market could face in 2020 is the performance of the public chains having a hard time at commercial-level applications. To further boost prosperity and the underlying technical environment of DeFi, KuCoin is also developing a financial public chain — KuChain, to empower the open finance industry and provide services for DeFi, DEX projects.

Image from KuCoin Official

KuChain’s testnet Kratos has launched its beta version and is aiming to build a four-layer network based on the needs of DeFi and DEX, modularizing the protocol and functions, KuChain provides a modular Defi basic environment for project development.

The KuChain team is widely collecting business and technical proposals to further meet the demand of the market. Make sure to stay connected to their latest news and events!

In summary, innovations and experiments are happening at a lightning pace. Although this rapid growth in DeFi has also surfaced significant issues and limitations, particularly for democratizing access to DeFi applications and protocols, however, KuCoin believes the DeFi market is part of a massive and permanent expansion of the industry. KuCoin aims not only as a fertile soil for DeFi to grow, but it also aims to become an incubator for DeFi and DEX projects. KuCoin will empower DeFi projects from the underlying technical environment, business application scenarios, initial token distribution, token circulation, user and community built, and future on-chain governance, etc.

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Forward-Thinking Crypto Exchange May Look To Integrate The Most Prevalent DeFi Protocols was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.