Decentralized finance (DeFi) is a blockchain notion that defines an ongoing attempt to create alternatives or replacements to mainstream financial activities on the blockchain. DeFi platforms are equipped with blockchain-level security and distributed authority. They are designed to be permissionless and power seamless financial transactions with improved security.
DeFi platforms built on several smart contract blockchains currently offer a number of mainstream financial services on the blockchain. These services include; lending and borrowing, exchanging of assets, and saving. Ethereum blockchain houses over 400 DeFi projects, it is the originator of the commonly known concept of DeFi.
To offer an effective solution to Ethereum’s scalability issues, layer 2 solutions are emerging as a faster alternative to the plain Ethereum blockchain. Layer 2 solutions scale the Ethereum blockchain by taking transactions off the Ethereum mainnet and executing them while keeping a record of the mainnet and switching easily between these two. Layer-2 solutions move away from congested Mainnet but still rely on the mainnet for final block validation and security.
Layer 2 solutions offer projects an avenue to build on a super-fast platform and enjoy a great deal of efficiency. Launching on Ethereum layer 2 is Mute.io. Mute will be building its DeFi platform on layer2’s ZKsync.
With ZKsync 2.0 mainnet launching in two months, Mute will also deploy its DeFI suite on the layer-2 solution. Mute switch will attempt to offer certain decentralized financial services at incredible efficiency. A notable feature of the Mute’s switch is a privacy layer that prevents the orderbook from being visible to traders, this is an attempt to prevent the notorious order book frontrunning. Front-running bots on DeFi platforms are designed to peep into the orders book and manipulate traders with respect to an expected huge buy and sell.
A defi platform with an integrated privacy layer built on top of a super-fast layer of the Ethereum blockchain could present many opportunities for traders and investors alike. More than 10,000 traders have since tested the Mute Switch and the final release could be in the pipeline as soon as zkSync’s mainnet is released. Mute Switch will also feature every other characteristic of a decentralized exchange.
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