Lately, on-chain network has emerged as the focus of the entire crypto industry. The mechanism takes care of the entire transaction from start to finish. It also makes the most of the public ledger. It verifies the transactions quite quickly and validates the network for verification. Using the Proof-of-Work consensus also rewards miners quite positively.
Solana On Its On-Chain Foray
For quite some time, the exchange has been working on an on-chain network. Its associated body, Ellipsis Labs is all set to launch its exchange Phoenix. This new entity introduces an on-chain order book that operates on the Solana mainnet. Its seed round raised $3.3 Million and set the goal of starting Solana’s native token SOL.
The team of five people at Ellipsis assigned it to Electric Capital. The objective behind the project is to scale up the decentralization. Its co-founder Eugene Chen shed some light on the platform’s course of action. He said that the website aims to strengthen the world to execute voluminous crypto transactions easily.
In an interview, he said that no protocol has tried to work on price discovery in the crypto space. The on-chain sphere has merely existed but it hasn’t been exploited. He said that Solana is working towards it and bringing some real changes. He also pointed out that the major exchanges operate on centralized mechanisms.
Currently, only a few assets are exploring the sphere of price discovery. Furthermore, Solana, being an asset of large volume, needs more liquidity to work. Chen stated that exchanges Phoenix would work perfectly in the deeper order books.
Before Solana, Chen worked on Ethereum DeFi and MEV. He asserted that the new DEX works only on Solana.
Solana’s Vision to Expand Decentralization
Elaborating on the project’s vision, he said that it aims to bring DeFi to the forefront of the blockchain revolution. He also commented on Ethereum’s limiting infrastructure and explained why he chose Solana. The co-founder said Solana became an obvious choice because of its scalable framework.
At the same time, he expressed his views on the AMM approach of Uniswap and borrowing/lending protocols. He said that they are too costly and slow. Even on the Layer-2 network, these DeFi solutions don’t perform as per the expectations. According to him, UniSwap is a good example of a typical off-chain network with many limitations.
Additionally, Ethereum DeFi didn’t deliver efficacy or risk management, said Chen. He briefly cited Curve Founder Michael Egorov’s CRV position on AAVE to give an example. Usually, centralized risk management goes against the ethics of decentralized markets. The whole setting has a profound effect of sole governance on it.
Taking a dig at the existing exchanges, Chen said that they totally mock the concept of decentralization. These platforms are totally compromising the censorship and other essential factors of blockchain. Additionally, they totally mess with the matching engine as well. However, Solana improves things on many fronts while improving the condition of decentralization in the crypto landscape.
With Phoenix, the crypto users have some hope of embracing DeFi without restrictions.