Things We Can Know From FTX Incident

Following the FTX incident, the problems of centralized exchanges (CEX) have come to light. As a result, decentralized exchanges (DEX) are being developed to complement these issues.

In this article, we will briefly examine the advantages and disadvantages of both CEX and DEX, and explore innovative DeFi hub models that support users' derivatives and spot trading.

(DEX stands for decentralized exchange, CEX stands for centralized exchange, and both are platforms that allow cryptocurrency users to exchange, purchase, and sell cryptocurrency smoothly.)

Summary of CEX

• Advantages of CEX

CEX has guaranteed liquidity. Cryptocurrency can be exchanged for nominal currency and is easy to use.

• Disadvantages of CEX

First, the CEX mechanism is a trust-based mechanism that the user cannot control. Therefore, users must fully trust the exchange that their money is safe. This condition risks being attacked by hackers.

Second, it is a centralized exchange and operates according to government regulations. Operators must collect extensive data about their customers, which is contrary to the concept of cryptocurrency.

Summary of DEX

• Advantages of DEX

First, DEX runs through self-executing smart contracts on the blockchain, giving users complete control of their assets. Hackers who have mainly targeted CEX's central data and leaked funds cannot enter the user's wallet unless the user directly exposes the data.

Second, decentralization eliminates the need for user identification procedures, eliminating the risk of personal user data leakage.

• Disadvantages of DEX

It may be more complicated for beginners to learn and use, and liquidity may be limited if they do not allow payment of legal tender.

Innovative DeFi, Nibiru

Nibiru is an innovative DeFi hub within the open-source platform Cosmos ecosystem that enables blockchain users to support derivatives and spot transactions securely and in full on-chain, without permission, through distributed applications.

Explanation of Nibiru Ecosystem

#1. Nibi-Perps

Nibiru Blockchain supports the distributed, fully-on-chain permanent futures exchange (Nibi-Perps) for the most popular financial product Perps in the modern cryptocurrency market. Minimize imbalances in latency and open profits during periods of high volatility, increase the number of unique traders on the platform, and reduce the bleeding of ecosystem funds.

#2. Nibi-Swap

Automated Liquidity Protocol (AMM) for spot trading allows integration with other applications without intermediaries. Provides users access to swap, pool, and bonded liquidity gauges, and all features can be integrated with other applications without intermediaries.

#3. NUSD, Stable Coin

Nibiru creates a stable coin, a fractional algorithm called Nibiru creates a stable coin. NUSD has an elastic supply that adjusts to market demand. This provides greater capacity to scale through lower requirements for external collateral.

#4. IBC(Inter-Blockchain Communication)

Nibiru uses Inter-Blockchain Communication (IBC) to communicate with other Cosmos Layer 1 chains. The write client model used by the IBC protocol waits for proofs generated by other chains when sending transactions, passes them to the physical chain, and performs operations.

Why does Nibiru use the Cosmos ecosystem?

Using Cosmos, the blockchain can maintain sovereignty, process transactions quickly, and communicate with other blockchains in the ecosystem, so it can be utilized in various ways. Helps users quickly deploy custom, secure, scalable, and interoperable blockchain applications.

Conclusion

Nibiru is a secure Defi operating within the Cosmos ecosystem, an innovative distributed futures exchange (Nibi-Perps), Nibi-Swap, and NUSD. Nibiru enables users to make derivatives and spot transactions at any time conveniently and without permission. Currently, Nibiru is developing an innovative web app through the support and active communication of community members, and details can be found through the link below.

Official Website: https://nibiru.fi/
GitBook: https://docs.nibiru.fi/
Twitter: https://twitter.com/NibiruChain
Medium: https://blog.nibiru.fi/
LinkedIn: https://www.linkedin.com/company/nibiruchain/
Disord : https://discord.com/invite/sgPw8ZYfpQ

Lecca Ventures is proud to invest in a $8.5M financing round for Nibiru.
We support Nibiru become an innovative DeFi hub that can safely support derivatives and spot transactions without permission.

Disclaimer: This content is for information purposes only. The information and opinions contained in this post has been obtained from sources believed to be reliable, but Lecca Ventures makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. The information and opinions are subject to change without notice.