Blockstream announced that it would be launching a brand new decentralized exchange utilizing the Liquid network. This latest project will be called TDEX and shall be opened for early access as early as Monday. The TDEX initiative is being developed by the white-labeling company Sevenlabs. It is set to add new appealing features to the already established Automated Market Makers (AMM) framework, such as its decision to focus on ad-hoc atomic swaps, enabling exchange between two parties without the need for any intermediaries.
Despite the resemblance with that of AMMs, Sevenlabs CEO, Claudio Levrini, clarified that the TDEX would be entirely different. It will not be like AMM. Instead, it will be better. According to Levrini, TDEX will not have any mathematical formulas which are responsible for forced exchange prices. Liquidity providers will have full control of fixed price schemes or the inclusion of any outside price feeds and customized trading logic. As a result, liquidity within the platform will be more prevalent, just like that of Uniswap and other DeFi protocols.
Blockstream’s CEO, Adam Back, has high hopes for TDEX. He believes that this latest exchange can capitalize on the continually emerging DeFi solutions within the Liquid network. He even went as far as dubbing them as the ‘LiFi’ protocols.
The growing demand for Bitcoin DeFi
These newly emerging projects of Bitcoin-centric corporations that aim to penetrate the DeFi market further establish the community’s growing interest in developing a ‘Bitcoin DeFi’ sector. That being said, it is still worth remembering that these projects aren’t actually developed natively on the leading crypto, because of the glaring smart contract restrictions. This means that it would still prove difficult to establish a trustless passage towards the blockchain, forcing third-party chains to assume combined peg frameworks.
However, there is no denying that the demand for Bitcoin DeFi is growing stronger with every passing day. This is evidenced by the number of Bitcoin committed within the Ethereum network outweighing the locked BTC’s combined volume within Liquid and Lightning.