India’s leading cryptocurrency exchange, WazirX, recently today revealed that it is gearing up to develop and launch their first decentralized finance product in collaboration with the Matic network.
Within the official announcement, the corporate added that they’re going to launch an AMM [Automated Market Maker] protocol. Nischal Shetty, the CEO of WazirX, shared that the merchandise was presently under development, and they decide to launch a testnet version by the end of September this year.
An automated market maker protocol might be a sort of smart contract meant to exchange order books utilized in traditional exchange marketplaces. They create a liquidity pool where tokens are automatically traded using an algorithm within a decentralized ecosystem.
While explaining the reason for selecting the Matic network, they emphasized that the network offered higher scalability and throughput than Ethereum [ETH].
Shetty said that through their new DeFi project, WazirX intends to draw in this users of the exchange and new institutional funds.
The end product of their new initiative is predicted to bring users to participate within the liquidity pool reciprocally for WRX tokens. It’ll also permit institutional funds to take advantage of DeFi liquidity to execute their trades, said the CEO.
To bring additional liquidity, Shetty said, WazirX will partner with several liquidity providers; however, he abstained from naming their potential partners.
As of now, the new DeFi product will be launched separately from the main WazirX exchange, but Shetty said they decide to work on “a deeper integration between the two” platforms.
Regarding the impact of uncertain cryptocurrency regulations on the project, Shetty added that he was “confident about positive cryptocurrency regulations upcoming in India.”
It is a notable step for the organization to work on a new cryptocurrency project as the project risks coming to a standstill with almost no users if the draconian blanket ban bill proposed earlier in last year were to become a law in India.