Decentralized Finance (DeFi) is the movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries. DeFi is an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.
About Lattice Exchange
Lattice is a Decentralized Finance (DeFi) application built on Ethereum blockchain and Constellation’s Hypergraph Transfer Protocol (HGTP). Lattice will evolve the DeFi ecosystem by providing more assurance in crypto asset trading and settlements and the ability to incorporate multiple specialized and asset-specific automated market making algorithms. This solution will be a game changer for blockchain industry with better financial instruments that are cost effective and have the speed, security, and scalability than traditional securities.
Lattice aims to evolve current DeFi applications with thicker liquidity, institutional-grade AMM algorithms and ultimately faster and less expensive settlement due to the use of the Constellation HGTP. Lattice will thereby bring institutional grade reliability and usability to the DeFi ecosystem.
Flexible Liquidity Pool:
Lattice aims to add a thicker liquidity pool that allows lenders to earn transaction fees on their liquidity deposits.
Automated Market Making:
Automated market making (AMM) based on the liquidity pool.
Advanced Matching Algorithms
Lattice will add advance institutional grade order matching algorithms that are asset specific (multiple AMMs).
Lattice (LTX) Governance Token
The platform aims to have a governance token called “Lattice (LTX)” which gives holders certain rights in regards to economic parameters like transaction fees and inflation/deflation.
Lattice is a decentralized application, DeFi solution, built on the Constellation Hypergraph infrastructure with seed investors Alphabit, FBG Capital and Chronos ventures.
Lattice Approach to DeFi :
With a multi-phase roll out, Lattice aims to be an end-to-end DeFi solution on the Constellation Hypergraph Network.
In the first phase, Lattice will first be developed on the Ethereum blockchain for transaction settlement. Liquidity from throughout the DeFi ecosystem will be aggregated and order matching will be improved. Additionally, users can supply liquidity to the exchange pools on the platform to earn trading fees. By leveraging Constellation’s HGTP as the base layer protocol, Lattice will support more complex trading algorithms and deliver faster trades as their ecosystem supports microservices and complex data structures for high computation needs like real time trading.Lattice will allow users to choose or to build their own AMM for creating liquidity pools based on the asset type.
The Lattice liquidity pool :
One of the biggest challenges for exchanges of any type is liquidity. Traders gravitate to where order books are most liquid. While centralized exchanges have a centralized orderbook with solid liquidity decentralized exchanges don’t. That means liquidity is spread over different uniswap type environments which is unfavorable for traders. To enable a higher liquidity and better prices Lattice exchange pools liquidity from several uniswap exchanges to allow for less slippage and higher trading amounts.
Multiple AMM algorithms:
Different from the current AMM liquidity pools, Lattice will be supporting multiple AMM algorithms in the later buildout stage for users when they create a new trading pair on the exchange. Furthermore, AMM is defined as algorithmic agents that provide liquidity in electronic markets. As Uniswap becomes the center of DeFi applications, AMM gains attention in the crypto industry, with protocols like Balancer, where there are more implementations in liquidity protocols.
In Phase 2 Interoperability: Bridge to the Hypergraph ecosystem allowing for fluent value exchange between both ecosystems. Liquidity provision of Hypergraph $DAG tokens in the Lattice liquidity pool. Exploration and preparation of multiple plugable AMM algorithms that will allow users to choose or to build their own AMM for creating liquidity pools based on the asset type.
In Phase 3 Migration from Ethereum, to the Constellation Hypergraph. Lattice AMM will run on Constellation via micro-services. Multiple plugable specialized AMM algorithms for specific trading pairs allowing users to choose and develop their own AMM.
Lattice will be an evolution of existing DeFi solutions by providing the best price and profitability for protocol users. It provides smart routing for trades and also the ability to incorporate multiple asset-specific automated market making (AMM) algorithms to increase profitability. This will not only capture market share but increase the overall market potential. Lattice, powered by Constellation’s Hypergraph Network and HGTP, provides the protocol and infrastructure to improve and exponentially scale the DeFi industry and enable crypto asset trading tools with integrity and assurance. The aim of Lattice is to provide solutions that have more security, speed, and lower transaction fees which will be attractive to all crypto asset traders in the industry.
I believe that this project has every chance of success and I will support it in all matters! The project team is very active in developing the project and maintaining close contact with their community! I advise everyone to pay attention to the project and study it in even more detail!
Bounty0x username: Kuenshahi
Note: A sponsored article written for a bounty reward.