Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: EAA-ALLAH on May 27, 2021, 12:33:10 AM
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Accelerator DeFi Alliance has backed the first Solana-based project — Mercurial Finance.
Mercurial is building a protocol for stablecoin trading on the Solana blockchain.
Startup accelerator DeFi Alliance, which has notable mentors including Coinbase, has backed the first Solana-based project — Mercurial Finance.
DeFi Alliance has invested $100,000 in Mercurial and would help bootstrap liquidity of the protocol, Mercurial co-lead Ming Ng told The Block.
Founded earlier this year, Mercurial is building a protocol for stablecoin trading on the Solana blockchain. Mercurial can be seen as similar to Curve Finance on Ethereum.
But according to Ng, Mercurial's competitive edge is dynamic fees and dynamic allocation with low slippage. Slippage refers to the difference between the expected price of a trade and the price at which the trade is executed.
As for dynamic fees, Ng said Mercurial's trading fees would adjust according to market volatility. During high volatility, fees would increase to compensate liquidity providers and vice versa.
When asked about the choice of dynamic fees, Ng told The Block that in traditional market making, market makers charge more spread in volatile markets because there is more demand and risk, and lower spread in less volatile markets to attract more volume. "So we are looking to model those dynamic fees in our market-making vaults," said Ng. Source (https://cryptonews.net/705452/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)