Decentralized financial ecosystem, Timechain announced the launch of new features to its decentralized exchange (DEX), this Monday, bringing the world of decentralized finance (DeFi) to its users. The new DeFi features include staking, liquidity pools, yield farming, and permissionless lending and borrowing. Additionally, users will be able to swap thousands of cryptocurrencies on multiple blockchains including assets on Binance Smart Chain, Ethereum, and Fantom ecosystems.
Since the start of 2020, the DeFi ecosystem has soared exponentially in value as developers introduced new ways for users to make their capital work. In 2021, the industry further blossomed as Layer 1 scalability solutions such as Solana and Layer 2 solutions including Polygon, Fantom, and Avalanche were built on Etherum, reducing the gas costs and transaction times greatly.
According to DeFi Pulse data, the total locked value (TVL) DeFi ecosystem has grown from $10.5 billion in January 2020 to a high of $112 billion in November 2021, representing almost 10X growth during the period. One of the leading applications of DeFi supporting the gargantuan growth is the rise of automated market makers, or AMMs. They allow investors and token holders to use their tokens to provide liquidity, earn returns and concurrently increase demand for the native token exchange.
The latest upgrades on Timechain’s DEX are set to improve the efficiency of its AMM while offering an industry-spread aggregator to enable users to find the best and cheapest swapping routes across all integrated platforms. As mentioned above, the DEX also introduced AMM liquidity pools, staking functionalities, peer-to-peer lending & borrowing services, and yield farming. These services provide liquidity to the platform, support its native utility token, $TCS, and promote other tokens that wish to leverage its infrastructure.
Timechain’s new liquidity pools will also offer users who stake on the platform rewards, paid out in $TCS, from the fees generated by trades on the platform. The base trading fee of 0.3% will be applied to each trade, with 0.2% returned to liquidity providers and 0.1% going to Timechain’s TCS Buyback program.
To add liquidity to the liquidity pools, users will need to provide an equal value of the two tokens within the pair, for instance, on the TCS/FTM pool, you will need to provide 50% TCS and 50% FTM, of the value you have. You’ll then receive LP tokens that represent your share of the pool, These LP tokens then generate rewards, proportionally to the trade fees generated. Available liquidity pools at launch include TCS/FTM, TCS/USDC, TCS/DAI, FTM/USDC and FTM/DAI.
Furthermore, these LP tokens can also be deposited on yield liquidity farms to earn additional rewards in $TCS. The liquidity farms are designed to incentivize users to provide liquidity to TimechainSwap and offset the risk of impermanent loss. Users will be able to harvest their rewards at any time.
Finally, with the DeFi ecosystem revolutionizing the finance industry, platforms in the industry are continuously innovating to give users the best possible rates and utility for providing liquidity. Timechain swap staking feature, will give users a way to stake their $TCS into the $TCS single asset staking pool (SSP) and earn $xTCS rewards over time. This means you will earn rewards by staking your rewards!