LineaThe Importance and Mechanics of Lending & Borrowing in DeFi
Lending and borrowing are the core of decentralized finance (DeFi). For the ecosystem, they provide liquidity to the market, ensure that capital is being used efficiently, and are the springboard for innovative products such as flash loans. For users, lending and borrowing provide them with traditional finance tools such as interest and liquidity, with all the added benefits of decentralization. Let’s look at the details of how lending and borrowing work in DeFi, the key terms you need to kno...
LineaTestnet Voyage LXP Drop Is Here
This week our team is excited to make the largest and most anticipated LXP drop in Linea’s history for some of the biggest OGs. The Testnet Voyage Campaign dates back to May 2023 when our network was just getting started and Linea Goerli struggled mightily to keep up with the enthusiasm and persistence of community members who joined Linea's inaugural campaign. In recognition of these efforts, community members received Voyage NFTs distributed in five categories—Alpha, Beta, Gamma, Delta...
LineaHow to Build a Decentralized Voting Dapp on Linea
Blockchain and web3 have changed our understanding of transparency, trust and decentralization. One of the most incredible use-case for this technology is the development of web3 dapps (decentralized applications) that offers solutions that are secure, verifiable and tamper-proof solutions to our everyday challenges. Among all the use-cases, decentralized voting stands out. Decentralized technologies remove middlemen and ensure transparent vote counts, this voting dapp has the potential to ch...
A developer-ready zk-rollup for scaling Ethereum dapps, powered by ConsenSys.
LineaThe Importance and Mechanics of Lending & Borrowing in DeFi
Lending and borrowing are the core of decentralized finance (DeFi). For the ecosystem, they provide liquidity to the market, ensure that capital is being used efficiently, and are the springboard for innovative products such as flash loans. For users, lending and borrowing provide them with traditional finance tools such as interest and liquidity, with all the added benefits of decentralization. Let’s look at the details of how lending and borrowing work in DeFi, the key terms you need to kno...
LineaTestnet Voyage LXP Drop Is Here
This week our team is excited to make the largest and most anticipated LXP drop in Linea’s history for some of the biggest OGs. The Testnet Voyage Campaign dates back to May 2023 when our network was just getting started and Linea Goerli struggled mightily to keep up with the enthusiasm and persistence of community members who joined Linea's inaugural campaign. In recognition of these efforts, community members received Voyage NFTs distributed in five categories—Alpha, Beta, Gamma, Delta...
LineaHow to Build a Decentralized Voting Dapp on Linea
Blockchain and web3 have changed our understanding of transparency, trust and decentralization. One of the most incredible use-case for this technology is the development of web3 dapps (decentralized applications) that offers solutions that are secure, verifiable and tamper-proof solutions to our everyday challenges. Among all the use-cases, decentralized voting stands out. Decentralized technologies remove middlemen and ensure transparent vote counts, this voting dapp has the potential to ch...
A developer-ready zk-rollup for scaling Ethereum dapps, powered by ConsenSys.
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Ahoy, Linea DeFi Voyagers!
We want to introduce you to XFAI, a next-generation Decentralized Exchange (DEX) on Linea. XFAI aims to revolutionize the Decentralized Finance (DeFi) landscape. XFAI is not just another Uniswap fork, it’s a unique architecture with a brand-new set of features.
XFAI is creating a reputation within the Linea network for having the lowest gas fees of any DEX on Linea. They have attracted over $2M in total value locked (TVL), comprising over 6% of Linea’s total DeFi TVL. This includes the largest wrapped Bitcoin (wBTC) TVL across the chain.
Traders often choose XFAI for their DeFi swap tasks on Linea, and it seems to be a promising option for users in the liquidity provision wave tasks. XFAI’s concentrated liquidity (and thus removal of token pairs and fragmented liquidity, resulting in concentrated fees for LPs) make it an attractive option for liquidity providers as LPs can earn higher fees per volume capita when using XFAI than other DEXs.
With the overwhelming success of the Linea DeFi Voyage so far, Linea is already positioning itself to be the new home for DeFi.
XFAI's groundbreaking exchange, offering minimal slippage for swaps and better trading returns.
XFAI is the brainchild of brothers Lum and Taulant Ramabaja, who are renowned and accredited in Artificial Intelligence and decentralized systems. They are supported by core team members hailing from successful projects such as Parity Tech, Polkadot, Synthetix and Ecomi, and backed by AU21 Capital, Rarestone Capital, Moonwhale, Tokenomik, LD Capital, TDeFi, Fission Capital, Kyros Ventures and Vendetta Capital.
XFAI is the mathematically most capital-efficient DEX and aims to be the pinnacle of trading on the Linea ecosystem, boasting an entirely new innovative DEX architecture that:
Eliminates fragmented liquidity
Enables better swap results with minimal slippage
Offers the lowest gas fees for swapping on all of Linea
Gives better returns for LPs
Ensures better token liquidity for projects
Has less set-up costs for projects
All while remaining completely permissionless
An overview of the benefits of XFAI and the problems with existing DEX designs that it solves.
XFAI transforms traditional trading norms by introducing a double-weighted constant market maker design, eliminating the need for multiple token pairs.
When pools are created on XFAI, liquidity providers commit the primary token they want to supply and an equal value of ETH to be used as the balancing weight. The result is that liquidity for each token is concentrated into its own deep pool, resulting in more efficient swaps with minimal slippage, and eliminating liquidity fragmentation into different pools. As a result, XFAI is more performant than exchanges like Uniswap even with a small percentage of the liquidity proportionally, and XFAI’s performance grows exponentially as liquidity increases.
On Uniswap and similar DEXs, token liquidity is fragmented into multiple token pairings which often have low liquidity, whereas on XFAI all tokens have their own unique pool.
This unique design also introduces several other standout benefits for traders on Linea, the first of these being that every token is directly swappable without the need for intermediaries. For example, if you want to swap between tokens on Uniswap that didn’t have direct pairings then you would have to do two swaps in the background. Compare this with XFAI’s double-weighted model, where every token acts as if they were directly paired with every other token, meaning that direct swaps between tokens can all happen in one smooth motion which minimizes slippage. This culminates in the best trading results possible, meaning more money in your wallet at the end of a swap.
On Uniswap and similar DEXs, Token X would be swapped for ETH, which would then get swapped for Token Y. On XFAI, Token X can be swapped directly for Token Y.
XFAI's design provides lucrative opportunities for liquidity providers (LPs). Unlike other DEXs where LPs often face negative returns, XFAI's approach allows LPs to earn profits by providing liquidity. Traders earn fees every time a swap occurs with the primary token they have supplied, yielding more impressive returns.
Regarding fees, XFAI excels in the earning opportunities available to LPs, due to the nature of XFAI’s concentrated liquidity pools.
When traders swap tokens on an exchange, LPs earn swap fees. On exchanges like Uniswap, LPs would earn fees for whenever their provided liquidity is traded. However, because liquidity is fragmented into different pools, traders only earn fees when their specific pool is transacted against.
With XFAI it’s a different story. As liquidity for each token sits in one singular deep pool traders earn fees every time a swap happens with the primary token that they have provided, meaning more fees and liquidity provisioning opportunities that result in profit.
On Uniswap and similar DEXs, LPs only earn fees for the specific pairing of liquidity they provided, whereas, on XFAI, LPs earn fees every time their primary token is traded.
In addition to the benefits for traders and LPs, XFAI’s approach offers advantages to projects on Linea. Traditional DEXs require projects to create multiple liquidity pools, fragmenting their liquidity. In contrast, XFAI allows projects to create one liquidity pool, lowering start-up costs, improving liquidity for their token and facilitating more viable swaps.
XFAI's performance as a simulation, with XFAI having just 10% of the liquidity of a token on Uniswap, XFAI would yield a better swap deal in 55.44% of trade instances, increasing as XFAI's liquidity increases.
XFAI also plans to introduce liquidity generation events for projects, allowing projects on Linea to bootstrap communities by offering token rewards for committing funds converted into liquidity, further deepening their token pool and making swaps even more performant.
XFAI is a Linea-exclusive project and chose Linea as its home chain due to its next-generation scalability and advanced performance as a leading zkEVM. Linea’s wealth of experience, backed by Consensys and championed by MetaMask, makes Linea a clear choice for XFAI. Linea seems set to drive the next wave of adoption through its technical capabilities and rich network of credible partners. XFAI is incredibly excited to work alongside Linea to usher in the mass adoption of DeFi.
Ahoy, Linea DeFi Voyagers!
We want to introduce you to XFAI, a next-generation Decentralized Exchange (DEX) on Linea. XFAI aims to revolutionize the Decentralized Finance (DeFi) landscape. XFAI is not just another Uniswap fork, it’s a unique architecture with a brand-new set of features.
XFAI is creating a reputation within the Linea network for having the lowest gas fees of any DEX on Linea. They have attracted over $2M in total value locked (TVL), comprising over 6% of Linea’s total DeFi TVL. This includes the largest wrapped Bitcoin (wBTC) TVL across the chain.
Traders often choose XFAI for their DeFi swap tasks on Linea, and it seems to be a promising option for users in the liquidity provision wave tasks. XFAI’s concentrated liquidity (and thus removal of token pairs and fragmented liquidity, resulting in concentrated fees for LPs) make it an attractive option for liquidity providers as LPs can earn higher fees per volume capita when using XFAI than other DEXs.
With the overwhelming success of the Linea DeFi Voyage so far, Linea is already positioning itself to be the new home for DeFi.
XFAI's groundbreaking exchange, offering minimal slippage for swaps and better trading returns.
XFAI is the brainchild of brothers Lum and Taulant Ramabaja, who are renowned and accredited in Artificial Intelligence and decentralized systems. They are supported by core team members hailing from successful projects such as Parity Tech, Polkadot, Synthetix and Ecomi, and backed by AU21 Capital, Rarestone Capital, Moonwhale, Tokenomik, LD Capital, TDeFi, Fission Capital, Kyros Ventures and Vendetta Capital.
XFAI is the mathematically most capital-efficient DEX and aims to be the pinnacle of trading on the Linea ecosystem, boasting an entirely new innovative DEX architecture that:
Eliminates fragmented liquidity
Enables better swap results with minimal slippage
Offers the lowest gas fees for swapping on all of Linea
Gives better returns for LPs
Ensures better token liquidity for projects
Has less set-up costs for projects
All while remaining completely permissionless
An overview of the benefits of XFAI and the problems with existing DEX designs that it solves.
XFAI transforms traditional trading norms by introducing a double-weighted constant market maker design, eliminating the need for multiple token pairs.
When pools are created on XFAI, liquidity providers commit the primary token they want to supply and an equal value of ETH to be used as the balancing weight. The result is that liquidity for each token is concentrated into its own deep pool, resulting in more efficient swaps with minimal slippage, and eliminating liquidity fragmentation into different pools. As a result, XFAI is more performant than exchanges like Uniswap even with a small percentage of the liquidity proportionally, and XFAI’s performance grows exponentially as liquidity increases.
On Uniswap and similar DEXs, token liquidity is fragmented into multiple token pairings which often have low liquidity, whereas on XFAI all tokens have their own unique pool.
This unique design also introduces several other standout benefits for traders on Linea, the first of these being that every token is directly swappable without the need for intermediaries. For example, if you want to swap between tokens on Uniswap that didn’t have direct pairings then you would have to do two swaps in the background. Compare this with XFAI’s double-weighted model, where every token acts as if they were directly paired with every other token, meaning that direct swaps between tokens can all happen in one smooth motion which minimizes slippage. This culminates in the best trading results possible, meaning more money in your wallet at the end of a swap.
On Uniswap and similar DEXs, Token X would be swapped for ETH, which would then get swapped for Token Y. On XFAI, Token X can be swapped directly for Token Y.
XFAI's design provides lucrative opportunities for liquidity providers (LPs). Unlike other DEXs where LPs often face negative returns, XFAI's approach allows LPs to earn profits by providing liquidity. Traders earn fees every time a swap occurs with the primary token they have supplied, yielding more impressive returns.
Regarding fees, XFAI excels in the earning opportunities available to LPs, due to the nature of XFAI’s concentrated liquidity pools.
When traders swap tokens on an exchange, LPs earn swap fees. On exchanges like Uniswap, LPs would earn fees for whenever their provided liquidity is traded. However, because liquidity is fragmented into different pools, traders only earn fees when their specific pool is transacted against.
With XFAI it’s a different story. As liquidity for each token sits in one singular deep pool traders earn fees every time a swap happens with the primary token that they have provided, meaning more fees and liquidity provisioning opportunities that result in profit.
On Uniswap and similar DEXs, LPs only earn fees for the specific pairing of liquidity they provided, whereas, on XFAI, LPs earn fees every time their primary token is traded.
In addition to the benefits for traders and LPs, XFAI’s approach offers advantages to projects on Linea. Traditional DEXs require projects to create multiple liquidity pools, fragmenting their liquidity. In contrast, XFAI allows projects to create one liquidity pool, lowering start-up costs, improving liquidity for their token and facilitating more viable swaps.
XFAI's performance as a simulation, with XFAI having just 10% of the liquidity of a token on Uniswap, XFAI would yield a better swap deal in 55.44% of trade instances, increasing as XFAI's liquidity increases.
XFAI also plans to introduce liquidity generation events for projects, allowing projects on Linea to bootstrap communities by offering token rewards for committing funds converted into liquidity, further deepening their token pool and making swaps even more performant.
XFAI is a Linea-exclusive project and chose Linea as its home chain due to its next-generation scalability and advanced performance as a leading zkEVM. Linea’s wealth of experience, backed by Consensys and championed by MetaMask, makes Linea a clear choice for XFAI. Linea seems set to drive the next wave of adoption through its technical capabilities and rich network of credible partners. XFAI is incredibly excited to work alongside Linea to usher in the mass adoption of DeFi.
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