Runs On Radix Q&A: DeFiPlaza | The Radix Blog | Radix DLT
With Babylon’s launch on the horizon, the Radix ecosystem is on the verge of a new era of DeFi.
In this series, you’ll delve deeper into the projects within the Runs On Radix program. This initiative serves as a platform for builders to spotlight the Full Stack for DeFi, showcasing their innovative creations.
Over the next few months, Radix Publishing will chat to the participant projects, offering the Radix community an in-depth insight into each project’s journey and vision.
Now, let’s turn your attention to DeFiPlaza: A soon-to-launch Radix DEX with a focus on superior UX and capital efficiency.
- DeFiPlaza currently operates on the Ethereum Network with plans to expand to the Radix Network.
- The poor developer experience on Ethereum fueled the move to Radix.
- The team aims to provide a trading experience that is not only swift but economical too.
What is DeFiPlaza?
DeFiPlaza is not just another DEX—it could be a game-changer in the world of DeFi. Operating on the Ethereum network and soon launching on Radix, DeFiPlaza redefines the trading and liquidity provision landscape by focusing on capital efficiency and user-centric design.
“Our DEX offers concentrated liquidity with mitigations against Impermanent Loss for liquidity providers. We are not aiming for the highest trade volumes, but the best income for our liquidity providers. People frequently think these are the same thing, but in practice they certainly aren’t.” – dj_trebel, Co-Founder
DeFiPlaza is gearing up to launch its decentralized exchange (DEX) on the Radix network, following the forthcoming Babylon upgrade. This move aims to bring together insights gained from DeFiPlaza’s Ethereum DEX and leading protocols like Bancor, Dodo, and Curve. The new exchange will offer a multitude of features designed to enhance user experience and operational efficiency:
Multi-Token Trading: While the Ethereum DEX supports 16 tokens, the Radix version aims to offer even more direct trading pairs. Users can trade between any two tokens with a single transaction fee, avoiding the need for multiple hops between pools.
Single-Sided Liquidity: Unlike traditional DEXs that require liquidity providers to risk exposure to multiple tokens, DeFiPlaza will allow providers to isolate their liquidity token by token. This functionality is managed through an internal token, DFP2, which serves as the ‘grease’ facilitating all transactions on the platform.
Concentrated Liquidity: To improve capital efficiency, DeFiPlaza will automate the concentration of liquidity. This mechanism aims to strike a balance between improved efficiency and minimized risk of impermanent loss.
Dynamic Fees: DeFiPlaza’s smart contracts will implement a fee structure that adapts to market conditions. When markets are tranquil, fees will be low; during high volatility, fees will rise to better compensate liquidity providers.
Token Launch Platform: The Radix DEX will feature an integrated platform for token launches. This will enable third-party projects to raise funds through an auction mechanism, with successful auctions resulting in immediate token listings on DeFiPlaza.
The exchange is still under development, and features may evolve before the final Babylon deployment. Nonetheless, DeFiPlaza’s planned offerings represent a robust attempt to address some of the DeFi ecosystem’s most pressing challenges.
The Journey To Radix
The story of DefiPlaza is one of collaboration, diverse expertise, and an unyielding passion for transforming the DeFi landscape. With three visionary founders at the helm, the journey to building on Radix began as a fusion of friendship, technical prowess, and a shared commitment to pushing the boundaries of Web3 innovation.
The Dynamic Trio
Meet the driving forces behind DefiPlaza: Jazzer9F, UI_guy, and djtrebel. Each founder brings unique skills and experiences.
Jazzer9F: The instigator of the project, Jazzer9F, identified an opportunity in the midst of Ethereum’s escalating gas fees in early 2021. With a history of engagement in the Radix community dating back to 2013, he recognized the potential of Radix technology to revolutionize the decentralized exchange realm. Armed with an education in electrical engineering, Jazzer9F’s technical understanding laid the groundwork for DefiPlaza’s vision.
UI_guy: The front-end maestro, UI_guy is the creative force responsible for crafting the sleek and intuitive user interfaces that define DefiPlaza. With a passion for making things functional and exceptional, UI_guy’s expertise in clean and responsive design aligns seamlessly with the project’s philosophy. Armed with a background in computer science, he transforms concepts into user-centric realities.
djtrebel: The connector and communicator, djtrebel brings a wealth of startup experience and a knack for mentoring to the trio. A driving force in the software startup scene since his studies in computer science, djtrebel’s infectious enthusiasm and keen communication skills are invaluable in connecting with the community and driving DefiPlaza’s success. He’s a founder at DefiPlaza and an instrumental figure at Astrolescent, the DEX aggregator.
From High School Friends to Web3 Pioneers
The founders’ journey began decades ago in high school, forging a bond that would transcend time and lead them to the Web3 frontier. The decision to embark on a Web3 project was a personal and business opportunity fueled by their long-standing friendship and shared vision for innovation.
Inception: Seizing the Opportunity
The seeds of DefiPlaza were sown in the spring of 2021 amid the turmoil of exorbitant gas fees on Ethereum. Recognizing the inefficiencies plaguing existing exchanges, the founders spotted a gap waiting to be filled. The initial vision was to create an exchange that addressed the fee issue and optimized capital efficiency. The result? DefiPlaza emerged as the go-to DEX for economical trading on Ethereum, offering unparalleled capital efficiency through its innovative approach of pairing 16 tokens in a massive pool.
Evolving Design and Radix’s Promise
As the landscape evolved with the introduction of Uniswap v3 and the challenges of concentrated liquidity, DefiPlaza’s design adapted. The founders learned from the pitfalls of concentrated liquidity providers, sparking the evolution of a new exchange paradigm. Drawing inspiration from Curve, Dodo, and Bancor, DefiPlaza is crafting an exchange on Radix that combines concentrated liquidity with reduced impermanent loss risk—a game-changer in the DeFi space.
Choosing Radix: A Leap Forward
The founders’ experiences in Ethereum’s ecosystem drove the decision to build on Radix. Developing on the Ethereum Virtual Machine (EVM) came with a sense of unease due to security concerns. Radix emerged as a beacon of promise, offering improved user experiences and a more developer-friendly environment. The confidence in building complex designs without the constant fear of vulnerabilities proved to be a game-changer, promising a brighter future for DefiPlaza.
Check out the full interview below:
All information about DeFiPlaza was provided by the DeFiPlaza team and has not been verified by Radix Publishing, RDX Works, or their associated companies.