The New Face of DeFi Platforms on EOS Chain: Defibox

The New Face of DeFi Platforms on EOS Chain: Defibox

By insidetrader | HODL the Universe | 6 Sep 2020


Greetings Publish0x community, today’s topic is again related with Decentralized Finance and its different utilization areas. As you all know, most of us came across ‘’DeFi’’ word for the first time. And together with governance tokens’ hype, every individual started to talk about DeFi. However, the majority of crypto ecosytem still don’t know the real features of DeFi and how DeFi protocols have great opportunity to change our lives. Some of us only traded these tokens make some ‘’X’’ on portfolio, some of us only listened that as a new ‘’fairy tale’’. But at the end of the day, we know DeFi gave us a new chance about future: Open Finance…

DeFi platforms mostly uses Ethereum chain. But when we sum up all previous vulnerabilities of ETH chain and most recent ATH on transcation fees, people are not as interested as to use these platforms anymore. So what’s next? We must find another platforms with lower fee structure, high security, high power and additional features. At that time, on 21st of July 2020, Defibox Foundation has been formed to bring new solutions. But how a ‘’Foundation’’ scheme achieve the main goal of ‘’decentralization’’?

 

Defibox Foundation and Relationship

To be identical and different from such traditional crypto currency exchange platforms, it’s not allowed to see some core team members. Because it’s totally contrary to main feature but there must be staff to create, organize and design the elementary milestones of platform. Actually, we don’t know who they’re but it’s allowed to see what they’ve done so far. So the ‘’foundation’’ word doesn’t mean that it’s CEX.

Besides that, Defibox trying to reach much more community members and governance token holders to dissolve the foundation in future. According to their opinion, the token holders should determine the next step. For example there's an ongoing campaign to determine one-step further. Defibox offers 3 different proposals to token holders. You can check details here. So as a part of development, BOX DAO will be created to dissolve foundation and achieve total decentralization.

 

What is Defibox, briefly?

Defibox is a DeFi platform which provides unique ecosystem to crypto community. As I said in my previous words, Ethereum chain is not enough to fill the gaps and meet the needs of individuals. So here comes the main difference from other examples. Defibox is to be established on EOS Chain and utilizes its features. The election of EOS is mainly due to safety, proffesionalism and easy-to-use properties.

As a professional one-stop DeFi application platform on EOS and with the mission of improving the efficiency of global value circulation, Defibox uses the power of decentralization to combine the features of DeFi, which is more transparent, fairer and more convenient

Defibox is a product of Newdex, which is again EOS-based Decentralized Exchange (DEX). You can enjoy ‘’cross-chain’’ trading model on Newdex. It is also the leading EOS DEX by trading volume over 1,000,000 EOS per day.

 

What’re main products of Defibox Protocol?

1. SWAP: Defibox is not only the place that you can generate a stablecoin to use in further financial experience. It also provides you an ‘’exchange-like’’ platform to buy/sell tokens created on EOS-chain. To perform a swap action, you should have an EOS account and bind it to Defibox. It can be either desktop wallet or mobile wallet to be integrated. With simple interface, Defibox Swap protocol offers soft user experience while using. Let’s see how it works.

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As you see on the picture, it’s too easy to swap tokens. You should select the ‘’payment’’ currency on the left side which you will pay and mark the ‘’receiving’’ currency on the right side which will be sent into you wallet. Multi-Path Swap is somewhat different than we know in terms of ‘’transaction fee’’. On Defibox, some of the payment tokens is not converted directly to receiving currency. It takes more than 1 step and for each step, platform charges you 0.3% commission. As you can understand from that picture, converting EOS into USDT takes 4 different swap and results 4-times more fee.

2. ADD LIQUIDITY: On any exchange or swap platform, users want to make transactions with closest ask and bid prices to minimize potential losses. Because of that, traditional exchanges hire Market Makers. When we think about DeFi, market maker position evaluated as Liquidity Providers. On CEXs, if you want to be a Market Maker, you should perform high exchange volume like 10 or 20 or even more in Bitcoin. Here is the second difference comes, everyone can be a market maker of Defibox. So how to perform this action?

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As you see on above screenshot, you should select a pair to add liquidity. I select EOS/NDX to join and filled NDX part with 7500 NDX. After filling any of 2 spaces, the remaining one will be automatically filled by system. That’s all for now. Just select the pair and click ‘’Confirm’’. After that you will receive the proportional transaction fees according to the amount of added liquidity.
HINT: NDX is the platform token of Newdex, the funder of Defibox.

3. USN Stablecoin: USN is a stablecoin pegged 1:1 to US dollar. It’s formerly the token of Danchor which is again EOS-based decentralized platform built on 17th of January,2020. After some time, to achieve leveraged trading function on Defibox, Danchor is merged into Defibox as a sub-project. So how it works?

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There are more than 2 tools on ‘’Generate USN’’ page which is not same as Swap and Add Liquidity parts. Firstly you should fill the top space by writing the staking amount of EOS to generate and receive USN. At the middle, you should determine the ratio of staking which will affect generated USN amount. If you increase the staking ratio the amount of USN will be reduced. It means that you can use same amount of EOS to generate different amounts of USN. But again a hint: If you reduce the staking ratio too much, it will increase the generated USN amount and also the liquidation price. And if the EOS price touches the liquidation price, all generated USN will be returned. At the bottom of page you can see how much USN to be generated with the given information.

After generating some USN, you can repay it from ‘’Repay USN’’ page. If you want to modify the staking amount and ration, you can use ‘’Manage Staking’’ tool.

 

Governance Token: BOX

BOX (defi.box) is the governance token of defibox platform. It’s currently being used to reward platform users. Total supply of BOX is limited to 100 million and it’ll be generated through mining method. Users can mine up to 20 millions of BOX tokens from swap, up to 10 millions of BOX tokens from both add liquidity, USN generation and other mining plans. The distribution of remaining half of tokens will be determined according to DAO BOX which will be the future headquarters of Defibox platform. You can check the details of token distribution from WhitePaper.

 

Ongoing Promotions of Newdex&Defibox

  • Bug Bounty Program: Defibox’s security solutions upholds the principles of fairness and transparency, and puts the security of users' assets first. To achieve more security levels, Defibox smart contract has undergone multiple audits by many well-known security companies, which effectively protects the security of users’ assets. Anyways, they launched the Bug Bounty Campaign to overcome possible security vulnerabilities. You can check the details here.
  • Daily Lucky Draw: If you are holding more than 10,000 NDX, you’re VIP on Newdex platform. So they give you an opportunity to make a draw and receive prizes up to 30,000 USN every day. Details can be found here.
  • Candy Airdrop: If you are at least VIP3 individual, means that staking at least 100,000 NDX, you will receive airdrop when new token listing happens. You can check the rules of airdrop program here.
  • Article Contest: The article contest about Defibox is one of the four ongoing campaigns on Defibox. You can experience the platform and write your feelings about anywhere on the net to reach more and more people. This article is also written to join article contest. If you want to participate, please have a look at related page.

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