The DAD bridges may unleash DeFi activity on EOS

The DAD bridges may unleash DeFi activity on EOS

By paragism | paragism | 5 Apr 2021


LiquidApps is a technology-focused company and it primarily works on optimizing decentralized development. The DAPP Network by LiquidApps is a product that acts as a universal middleware used across multiple blockchains. Services from the DAPP Network suite can be integrated with decentralized applications (DAPPs) and it also provides customization of the ‘level of decentralization’. Now LiquidApps wants to make EOS the first true decentralized chain by integrating their new Bridge.

Earlier the team created Bifrost Bridge for enabling cross-chain liquidity transfers between Ethereum and EOS networks. Presently they are working on a project called DAPP Account DAO or DAD. DAD is a cross-chain DeFi platform that utilizes DAO governance to launch and manage the best DeFi strategies and optimize yield for token holders. DAD is powered by DAPP network cross-chain bridging technology and can participate in yield farming strategies using Curve, Synthetix etc. to allow participation on EOS using cross-chain vaults and token pegs. The governance token of the platform is also called DAD. The token is used for all on-chain decision making through a voting mechanism.

Screenshot from Super Dad

DAPP Account DAO is a series of smart contracts and any official front-end is not available now. Some unofficial community made front-ends are available like – Super Dad, Daddy Dad, DAO Raffle. You need to connect with your EOS wallet. Please be cautious when interacting with the smart contracts. As per the team, DAD smart contracts were audited by Sentnl on December 8, 2020. The platform has an EOS vault called DEOS. It is used for staking tokens and earning BP staking rewards. The pool uses Newpool (Newdex proxy). You receive DEOS tokens in your account based on the current price of DEOS token when you deposit EOS into the vault. There is another vault called DDAP. You can earn a yield on DAPP by depositing it into the DDAPP vault. You receive DDAPP tokens in your account based on the current price of DDAPP token after depositing DAPP. All tokens are easily withdrawable. You can trade DAD on Defibox.

Screenshot from eCurve

The team has also cloned the popular Ethereum DeFi platform Curve. The clone is called eCurve. Again, you need an EOS wallet to login. The platform currently supports login through Scatter and Anchor. Curve was designed as a platform to offer low slippage conversions but the arbitrary Ethereum gas fee destroyed the purpose. eCurve works in a similar fashion to Curve but offers instantaneous and almost free and efficient stablecoin trading. Stablecoins are important components of the DeFi ecosystem and they basically supercharge lending-borrowing activity. So many stablecoins like DAI, USDT, USDC are there but the users need to convert one stablecoin to another. Often it is needed to automate the strategies for maximising yield. eCurve will offer the best propositions to exchange stable coins because of its low fees and low slippage. During a swap, it is important to maintain the liquidity pool. The initial eCurve pool has DAD bridged USDC & DAI (which comes from Ethereum) along with EOS USDT which are acting as base pool and this is termed as 3pool. The unique pool offers a swap opportunity of Ethereum side stablecoin to EOS native tether (USDT). ECRV is the governance token of the platform. The token incentivises the liquidity providers of the platform. Their official blog mentioned, “ECRV will start from 0 supply at initialization and released at a predefined rate every hour. The distribution of tokens will be sent to eCurve liquidity providers (70%), DAD community (15%) and for Worker Proposal System to fund DAO contributions (15%).”

DeFi is really exciting but initially, it remained limited on Ethereum. A single blockchain can’t really serve the DeFi need of the common users. DeFi also must be cross-chain as limiting it to a single blockchain will only create a barrier for mass adoption. Truly decentralized cross-chain bridges are not popular yet. DAD bridge brings multi-chain DeFi on EOS. EOS doesn’t have a scalability issue but DeFi activity didn’t become highly popular on EOS due to liquidity issues. The DAD bridges are already operational and it has a high potential to bring liquid asset flow on EOS. Let’s wait to see the outcome.

Note: This post was first published here for Cryptowriter in association with voice.com.

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paragism
paragism

Cypherpunk. Writing content which I love. Creeping on the blockchain. Founder - www.thecoinbuzz.com Twitter - @paragism


paragism
paragism

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