Maiar Exchange: Next Generation Passive Income
Image: Initiate Launch Sequence • Copyright: Elrond
Great news from Elrond: the in-house platform Maiar Exchange has been released on Devnet for final testing. Maiar Exchange is a decentralized online marketplace (DEX) for global and low-cost trading of tokenized assets, enabling its users to build passive income. For maximum performance, Elrond relies on the power and scalability of the Elrond network.
Maiar Exchange is well integrated with the popular Maiar app and is usable from any internet-enabled device. To better comprehend Maiar Exchange, we will take a look at what an exchange is and what characterizes a centralized versus a decentralized exchange.
The problem of centralized finance
Most of the financial services we use today are centralized to some degree. In most cases, intermediaries of various stripes play a weighty role. Think, for example, of a bank that manages its customers’ accounts and savings. The underlying processes involve employees, tipsters, advisors, fund managers and investment companies – to name just a few. And they all want a piece of the pie, in the form of salaries, commissions or fees.
In other words, it is these intermediaries who provide their customers with access to the financial market in the first place. And they usually do so under regulated conditions that are particularly unfavorable these days. Just think of the current interest rates, which are below one percent and thus far below the rate of inflation. Under these circumstances, many bank customers are currently watching idly as their credit balances are literally eaten up.
What is an exchange?
Exchanges are often referred to as a digital marketplace used to trade financial assets (stocks, bonds, currencies etc.) by placing orders to sell or buy. All information related, like price, trading volume etc. is usually displayed on the exchange. Activities of market participants are represented in the order book of the exchange.
Centralized (crypto) exchanges
Centralized crypto exchanges like Binance, Coinbase or Bitpanda and others work in a similar way. People have to create an account at the exchange, verify their identity and deposit Fiat funds to start buying and trading crypto and possibly other assets like stocks.
Decentralized exchanges (DEX)
In contrast, decentralized exchanges like Maiar Exchange can be used – thanks to blockchain technology – without the need to create an account on this platform. Intermediaries or middlemen become obsolete.
In practice, this means that users create a so-called wallet (e.g. in the Maiar app or at Elrond) in which they store and fully control assets (in our case cryptocurrencies such as EGLD). The decentralized exchange acts as a layer on top of this wallet that users connect to. Autonomous trading of assets, e.g. in the form of swapping (exchanging), lending (lending) and farming becomes a reality – including above-average returns.
Financial freedom and independence
In a world with finances and most economies in trouble, investments are a major risk and usually offer low returns as interest rates dwindle across the board. Decentralization is the key concept when we think about financial freedom and independence. As a leading DeFi application (DeFi = decentralized finance), Maiar Exchange is a hot contender for restoring financial sovereignty and generating attractive earnings.
Generating passive income
Institutional and private Investors and companies alike look for opportunities to increase their revenue. A valid option to do so is to strive for passive income which is a regular income that requires little oversight and time resources. Traditional passive income however is often bound to centralized financial service providers, whose interests are not always aligned with those of the investors. We’ve heard that before, right?
DeFi as a new source of passive income
In the fast-growing DeFi segment, investors are taking responsibility for their own financial investments. Behind these processes are initially complex-sounding words such as “staking” or “farming”, which basically stand for nothing other than the achievement of attractive returns. In essence, capital is tied up in decentralized protocols to earn interest and create a grassroots-organized financial ecosystem for all.
Putting responsibility in the hands of the investors
Investors in the DeFi segment enjoy full control over their funds and attractive returns. On the other hand, they do not benefit from third-party protection in the process. We identify three main risks that investors in the DeFi ecosystem should be aware of:
- Technology risk: Due to the applications running on top of a new technology stack, there is a possibility that the developers building the application might overlook or develop faults that can lead to exploits.
- Economic risk: Due to broken economics or incentive structures the applications can be financially exploited by malicious actors with big enough capital pools.
- Structural risk: At the core of blockchain markets is interconnectivity. A potential collapse of the overall market or the failure of a key component therefore impacts the entire ecosystem more severely.
Maiar Exchange as a next generation investment platform
Screenshot: Initiate Launch Sequence • Copyright: Elrond
Maiar Exchange was built by Elrond to provide a powerful DeFi investment tool based on the highly performant and technologically superior Elrond blockchain. The platform targets traders and token holders alike and benefits from the advantages of the technology, which is
- unprecedented speed
- maximum security
- seamless user experience
Maiar Exchange is fast
Exchanges in traditional finance often have to deal with thousands of transactions per second. In extreme cases users face service disruptions due to heavy online traffic. Maiar Exchange is built on the Elrond network, which offers an unprecedented speed of up to 250.000 transactions per second (testnet). It therefore enables users to trade without interruptions or delays.
Maiar Exchange is extremly secure
Asset security is a key parameter of an exchange. Traditional web-based platforms are vulnerable to technical attacks as customer information and data are often centarlized in data centers.
With the blockchain-based Maiar Exchange, users’ assets are well protected by advanced cryptographic algorithms and other novel security mechanisms. At its core, the platform derives its security from a decentralized network of 3,200 nodes distributed around the world. This makes manipulation extremely difficult.
Maiar Exchange provides a great user experience
A professionally designed user interface (UI) is the foundation for the success of web-based applications. The ability to easily interact with the platform, navigate seamlessly, and quickly grasp the feature set is critical to achieving high user adoption.
Maiar Exchange benefits from the high design standards of the Elrond team and the great user experience we already know from Maiar Wallet. Of course, Maiar Wallet and Maiar Exchange will interact seamlessly.
Who is Maiar Exchange for?
By noticeably reducing user complexity, Maiar Exchange lowers the entry barriers for DeFi trading platforms. The platform is therefore well suited for crypto investors and traders, even if they are still at an entry level. The functional scope of the platform opens up without extensive technical or financial knowledge.
The testing period of the Maiar Exchange has begun
On August 12, 2021, Elrond opened the doors to the community to test, validate, and submit suggestions for improvements to the Maiar Exchange. If you would like to participate in the testing process, you can find more information here: https://elrond.com/blog/maiar-dex-public-test/
Image gallery: screenshots of the Maiar Exchange testing platform
Summary
As a very user-friendly, high-performance and highly secure decentralized exchange (DEX), Maiar Exchange offers investors in the crypto segment outstanding opportunities to generate attractive returns in the form of passive income. Against the backdrop of low interest rates and a suffering global financial system, Maiar Exchange offers high return opportunities as part of a diversified portfolio.
We recommend crypto investors to first familiarize themselves with EGLD buying and staking and learn about the Maiar App before exploring Maiar Exchange opportunities.
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