WazirX Announces Plans for a DeFi Project in Collaboration with Matic Network

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WazirX announces plans for DeFi project in collaboration with Matic Network

WazirX is one of the biggest cryptocurrency exchanges operating in India. The crypto-exchange is planning to develop a DeFi project dubbed AMM in partnership with a blockchain scalability platform, Matic Network. WazirX is a Binance backed entity headquartered in Mumbai.

The DeFi industry has made a huge impact globally and this industry is making waves with its growth potential. It invokes the tech giants and newly launched startups to look into its implementations.

The team of WazirX believes that DeFi can transform the traditional financial system. WazirX becomes the first platform to develop a DeFi project in India, although WazirX is determined to bring more DeFi products in the future. 

Primarily, WazirX is doing so to gain profits because of the DeFi boom and demand. Moreover, it will propel India to closely review its use cases.

Importance of AMM protocol

The AMM protocol is also known as Automated Market Maker and it is among the most effective and innovative applications of DeFi. what makes it more unique is that it enables you with a decentralized exchange of tokens.

Besides, AMM uses an algorithm that creates a liquidity pool for you to trade rather than placing buy and sell orders. For instance, Uniswap is another DeFi project that permits you to earn trading fees by depositing crypto into a liquidity pool on the platform.

The crypto-exchange stated in its official blog:

“Decentralisation is at the core of everything we do at WazirX. We strongly believe in a decentralized future. DeFi is bringing in financial equality and financial access to everyone in the world.”

Furthermore the Co-founder and COO of WazirX said:

“The crust of DeFi is more transparency. This is a good thing for emerging markets like Crypto which brings confidence for institutional funds. We should expect huge funds coming in from institutional funds and we are just getting started.

I’m confident that within the next few months, we’ll see an uptick of 6X volume in DeFi space with 5.6 Billion USD already locked. We at WazirX want to bring the future of finance today and build infrastructure for the next big thing for small and big investors.”

Matic Network and low gas fees

The Ethereum layer2 of the Matic network provides scalability, decentralization, and high-level security. The fact that WazirX picked Matic over Ethereum is because of the low gas fees. Therefore, the WazirX superiors decided to move forward with the Matic network as it comes with lower gas fees and offers high speed.

“High gas costs [transaction fees] and scalability on Ethereum are concerns that made us choose Matic, which offers high speed,” said Nischal Shetty, CEO of WazirX. 

The first trial is scheduled to launch in September 2020. And WazirX is optimistic that this project will most likely bring exposure to the platform and result in more financial gains.

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Ben Gabriel

Ben is a cryptocurrency journalist, simple. He's also a technology and cryptocurrency geek having enjoyed immersing himself in the culture. Ben's motto is to research deeply, test thoroughly, and write simply.

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