The 1inch decentralized exchange liquidity aggregator has entered into a partnership with the NEAR project. The agreement calls for the deployment of Mooniswap automatic market maker (AMM) algorithms in this network in 2021 and the search for the best swap opportunities for Pathfinder tokens. This was reported to ForkLog by 1inch representatives.
Mooniswap liquidity pools in the NEAR and Ethereum networks will be independent of each other. Users will be able to use the NEAR Rainbow Bridge to transfer Ethereum tokens to the new blockhouse.
NEAR is a Proof-Of-Stake-based smart contract platform. The system uses an innovative consensus mechanism called Nightshade with the implementation of sharding, through which there are no limits on network bandwidth in theory. The NEAR protocol has a single environment common to all decentralised applications, similar to the current Bitcoin Up architecture.
„The existing NEAR scaling technology will allow the team to experiment with sharding and be ready for Ethereum 2.0,“ said co-founder and CEO of 1inch Sergei Kunz in a press release.
Mooniswap has reduced its profit margins for arbitrators by introducing a five-minute time delay in pricing. Thanks to this approach, the market maker forces them to make transactions at less favourable prices. This adds value to liquidity providers. The arbitrators receive only part of the slippage, while the other part is redirected to the general pool of liquidity providers.
In 1inch, they believe that Mooniswap brings liquidity providers 50-200% more revenue than Uniswap v2.
Messari analysts have suggested that 2021 will be the year of the „platform war“ due to the emergence of DeFi eco-systems in blockades competing with Ethereum.
The launch of the main network NEAR Protocol took place in October 2020.
Earlier Vitaly Buterin, the creator of the second most capitalised crypt currency, expressed his fears that NEAR could pose a serious threat to his creation.
The launch of Ethereum 2.0 will take place on 1 December. By 24 November, users had contributed the required 524,288 ETH to the deposit contract.