Meridian Money the leading Liquidity Layer on Movement Ecosystem.
Meridian is built to allows users to exchange cryptocurrencies directly (swap) and participate in liquidity pools (pool) to earn rewards. its built on Move based blockchain technology, leveraging Movement smart contracts to automate transactions without intermediaries.
Here’s a breakdown of how these Swap/Pool feature and its work:
1. Swap Functionality:
- Token Swapping: Users can swap one cryptocurrency for another instantly through decentralized exchanges (DEXs) on Move Blockchain. include Uniswap and PancakeSwap.
- Automated Market Maker (AMM): Instead of traditional order books, DEXs use liquidity pools and AMMs to facilitate trades. AMMs determine the price of tokens based on their supply and demand within the pool.
- Gas Fees: Swapping tokens involves paying a fee (in the blockchain’s native currency) to compensate network validators for securing and processing the transaction.
2. Pool Functionality:
- Liquidity Pools: Users deposit pairs of cryptocurrencies into liquidity pools on Move Blockchain. These pools provide the liquidity necessary for swaps and allow liquidity providers (LPs) to earn a portion of the fees from swaps.
- Impermanent Loss: A key risk in pooling, it refers to the potential loss compared to just holding tokens. This happens due to price fluctuations in the paired assets.
- Yield Farming and Staking: Users can further stake their liquidity provider (LP) tokens to earn additional rewards, typically in the platform’s governance token or other crypto assets. Yield farming involves strategically moving assets across different pools or platforms for higher returns.
Key Features of an Extensive DeFi Swap and Pool Platform:
- Cross-Chain Swaps: Some platforms enable swaps across multiple blockchains, enhancing flexibility for users.
- Layer-2 Integration: To reduce fees and increase transaction speed, some DeFi platforms integrate with Layer-2 solutions (e.g., Arbitrum or Optimism).
- Governance Tokens: Many platforms offer governance tokens that allow users to vote on protocol changes, influencing platform development and policies.
- Customizable Liquidity Pools: Advanced platforms let users create pools with customizable parameters, such as dynamic fee structures or specialized token pools.
- Examples of notable platforms:
- Uniswap (Ethereum)
- PancakeSwap (Movement Blockchain)