Leveraging On-Chain Focus: Solana’s Advancements
In recent times, the crypto industry’s spotlight has shifted towards the on-chain network, a mechanism that oversees the entire transaction lifecycle while harnessing the power of the public ledger. This system ensures swift transaction verification and validation through the Proof-of-Work consensus, providing miners with rewarding incentives.
Solana’s On-Chain Venture
With dedicated efforts, the Solana exchange has been diligently developing an on-chain network. The affiliated entity, Ellipsis Labs, is gearing up to introduce its Phoenix exchange. This fresh platform brings forth an on-chain order book functioning on the Solana mainnet. The seed round of funding amassed an impressive $3.3 Million, setting the stage for the launch of Solana’s native token, SOL.
The core team of Ellipsis, consisting of five members, has entrusted Electric Capital with this venture. The project’s objective revolves around elevating decentralization. Eugene Chen, a co-founder, sheds light on the platform’s trajectory. He envisions a robust platform that empowers the global execution of voluminous crypto transactions.
In an interview, Chen emphasizes that the crypto space has yet to witness a protocol focused on price discovery. While the on-chain domain exists, its potential remains largely untapped. Solana is making strides to harness this potential and introduce substantial changes. He points out that major exchanges predominantly operate through centralized mechanisms.
Presently, only a handful of assets explore the realm of price discovery. Given Solana’s substantial trading volume, greater liquidity becomes imperative. Chen envisions that the Phoenix exchange will excel in cultivating deeper order books.
Prior to Solana, Chen was actively engaged in Ethereum DeFi and MEV. He underscores that the new DEX operates exclusively on the Solana network.
Solana’s Vision: Expanding Decentralization
Expounding on the project’s vision, Chen elucidates the aim to elevate DeFi to the forefront of the blockchain revolution. He contrasts Ethereum’s constraining infrastructure and outlines why Solana was the preferred choice. The co-founder highlights Solana’s scalability as a compelling feature.
Simultaneously, Chen critiques Uniswap’s AMM approach and borrowing/lending protocols for their high costs and sluggishness. Even on the Layer-2 network, these DeFi solutions often fall short of expectations. According to him, UniSwap typifies a conventional off-chain network with notable limitations.
Chen also critiques Ethereum DeFi for lacking efficiency and adequate risk management. He cites Curve Founder Michael Egorov’s CRV position on AAVE as an example. Centralized risk management contradicts the ethos of decentralized markets, exerting significant governance influence.
Taking a swipe at existing exchanges, Chen contends that they undermine the concept of decentralization. These platforms compromise censorship resistance and other fundamental blockchain tenets. Moreover, they tamper with matching engines. Solana, on the other hand, advances various aspects, thereby enhancing decentralization within the crypto landscape.
With Phoenix, crypto enthusiasts anticipate embracing DeFi unrestrictedly.