Know All Features Of DEX
Just like in the stock market, cryptocurrencies are also marketed through exchanges or exchanges. The existence of exchange is very important because that is where all crypto transaction activities occur. In cryptocurrency, there are two types of exchanges namely Centralized exchange (CEX) and Decentralized exchange (DEX). To find out the difference, you can visit the article Knowing the Difference between CEX and DEX.
After recognizing the difference between CEX and DEX, Decentralized exchange (DEX) which relies on smart contracts to record every crypto transaction, is increasingly showing its development. DEX developers continue to improve by creating features that solve problems in DEX and blockchain. Here are the DEX features you need to know.
Swap
Swap which means to exchange is a service that allows users to buy and sell two different assets. For example, if you have USDT tokens and want to have LDX tokens, you can exchange them by taking advantage of the swap feature quickly. Tokens or coins cannot always be exchanged because they depend on the availability of the liquidity pool.
Yield Farming
Just like depositing in a bank, you can also generate profit or interest by storing crypto assets and lending them. Yes, this is called Yield Farming. Here you can earn interest from the results of saving and lending your crypto assets with high profits. Of course, this Yield Farming feature can only be found in the DEX which provides a liquidity pool. This liquidity pool acts as a smart contract that locks the asset funds that you save. Those of you who have contributed to the Liquidity Pool is called Liquidity Providers!
Staking
One way other than yield farming to profit from cryptocurrencies is through the staking feature in DEX. This feature is similar to saving. You have to save the number of your crypto assets for a certain period of time and will earn interest which is called “earn”. The staking period in each DEX can vary, usually, the staking period lasts from 30 days to two years. For example, say you have 10,000 tokens stored in your Dapps wallet and locked it for a period of 90 days (three months). So, you will not be able to access the token until your staking period is up and you get “earn”.
The “earn” mechanism also varies on each platform. On Litedex, you can earn up to 275% earn staking in 2 year staking period. Almost similar to yield farming, but different. The difference between staking and farming only lies in the assets deposited. To stake, you only need to prepare one token to stake. Meanwhile, yield farming requires two tokens to fill the liquidity pool in farming.
Staking people can be said to have played a role in improving the blockchain security system. They become validators on the proof-of-stake system.
Bridge
You must know that every digital crypto asset has a different blockchain network. Simply put, a bridge is a feature on DEX that functions as a bridge to carry out transactions between blockchains such as token transfers, smart contracts, data exchange, feedback, etc. Well, if you want to transact a crypto asset on a different network, then you need the Bridge feature. Each crypto asset located on a different network cannot transact with each other except through the bridge feature. For example, take the token on the Binance Smart Chain (BSC) network and the token on the Ethereum (ETH) network. If you have a token (BSC), you will not be able to use your token (BSC) to buy Ethereum products or exchange your token for SHIBA tokens on the Ethereum (ETH) network. Well, this is where the bridge feature works! How the hell did that happen? The way the bridge works is by holding the tokens that you have and want to exchange. For example, you want to exchange LDX for USDT and the bridge will give you USDT according to the LDX value you have.
NFT Marketplace
With the NFT marketplace, digital collectors can buy and sell or create their own NFT tokens to represent unique asset ownership. There are marketplaces that specifically sell certain assets such as games, digital card collections, and virtual real estate. There is also a marketplace that sells various assets. An example of a popular NFT marketplace oriented towards digital artwork is OpenSea.
NFT Launchpad
NFT Launchpad is a tool or platform that allows creators who own ideas, concepts, or art to launch their projects even though they don’t have tokens yet. With the NFT Launchpad, NFT creators can raise funds to create NFT projects and market their NFT projects. Examples of NFT launchpad are NFTb, NFTPad, NFT Launch, and NTFs olPad.
NFT which means the non-fungible token is built with the same programming as cryptocurrencies, such as Bitcoin or Ethereum. Non-fungible has a unique character and cannot be replaced with something else.
NFT Launchpad helps NFT creators build portfolios to publish their NFT projects. This platform helps creators and developers to develop their community, have high ROI, and lower fees for each of their NFT buying and selling transactions. Companies operating in the NFT Launchpad service think that launchpad can bring various benefits to businesses through royalties and the birth of native tokens.
Swap, yield farming, and staking features are available on Litedex, you know. There are already crypto tokens available on CEX (LBANK) and DEX (PancakeSwap). Are you interested in trying it? Come on, visit the official Litedex website. Follow Instagram, Twitter, Telegram, and TikTok to keep getting updated information from us!
