Xebra is an innovative leverage protocol designed with security and capital efficiency in mind, built on the Movement MVM (Move Virtual Machine). But why did they choose Movement? The primary reason is their tech team's deep experience with Move technology. As one of the early adopters on Aptos and Sui, they recognized the advantages of a multi-threaded virtual machine paired with an object ownership architecture.
Performance: Move enables parallel execution and low latency, which are crucial for quick margining.
Security: Built-in protections against re-entrancy mean that upgrades can happen more swiftly and safely.
Cost Efficiency: No global spikes in gas fees during volatile market conditions help maintain order book liveness.
They are also excited about the broader Movement ecosystem, not just M1. We believe in the modular chain thesis, and the potential to launch a customizable app-chain via the Movement SDK opens the door to various intriguing liquidity-boosting opportunities.
While new Move Layer 1s have attracted growing developer interest, they struggle to migrate large EVM liquidity due to two main issues:
A lack of foundational DeFi products already available.
Poor bridging experiences and the need for users to download new wallets.
Movement’s seamless cross-VM communication and backward compatibility with base networks enhance liquidity sharing significantly.
Xebra Swap is a peer-to-peer cryptocurrency exchange system designed for the Movement M2 chain. It utilizes the automated market maker (AMM) model, allowing for efficient and seamless token swaps without relying on traditional order books.
Swapping Process: You can exchange your existing tokens for a proportional amount of desired tokens. A small swap fee is deducted, which is then distributed as incentives to liquidity providers.
Trading Fees: Each swap incurs a fixed fee. For testnet/devnet users, this fee is currently set to zero.
Earning Fees: As a liquidity provider, you earn a portion of the trading fees generated from the swaps in the liquidity pool.
Price Impact: The final execution price of a swap is influenced by the liquidity at various price points. Higher liquidity typically results in lower price impact.
Slippage: You can set a slippage tolerance to limit acceptable price impacts during transactions. If the final price is within this range, the transaction executes; otherwise, it fails.
Decentralized: There’s no central authority or order book, enabling true peer-to-peer transactions.
Efficient: The AMM model ensures continuous liquidity and minimizes slippage.
Yield: Liquidity providers earn rewards from trading fees, encouraging active participation.