Summer is heating up, and so is Conflux Network! ☀️
Discover the exciting world of DeFi on Conflux! Get ready for a wave of upcoming projects set to launch soon.
Since the mainnet launch of Conflux Network in October 2020, we’ve witnessed significant progress and expect even more advancements on the horizon. The Hydra Upgrade in 2022 transformed Conflux’s consensus into a hybrid PoW+PoS consensus algorithm, marking the beginning of Conflux eSpace (CIP90) and the PoS staking mechanism (CIP43). This crucial shift bolstered the network’s security by introducing transaction finality and reducing the risk of 51% attacks.
Conflux has consistently prioritized Ethereum Virtual Machine (EVM) compatibility and the introduction of Conflux eSpace has further solidified this commitment. By offering support for Ethereum tooling, maintaining identical hex addresses, and ensuring API compatibility with EVM chains, Conflux eSpace enables developers to build seamlessly without needing to adapt to new dev tooling. Meanwhile, users can continue to use their preferred existing products. In essence, the Hydra upgrade has endowed Conflux Network with two interoperable spaces: Core and eSpace. Although these spaces have distinct smart contract environments, they both exist on the same Tree-Graph ledger, NOT on separate blockchains.
Conflux Network has consistently prioritized regulatory compliance, becoming the first regulatory-compliant permissionless blockchain network in China. In the first quarter of 2023, Conflux formed significant partnerships and integrations with established companies in China, including China Telecom and XCMG. Collaborating with China Telecom, Conflux Network is co-developing a blockchain-based SIM card, enabling China Telecom’s 300 million customers to securely store their private keys and interact with Conflux. Additionally, XCMG, the world’s third-largest construction equipment manufacturer, has selected Conflux as the network for its NFTs and future global blockchain applications.
As more traditional companies adopt Conflux Network, Web3 native applications have been evolving since the network’s inception, especially following the launch of Conflux eSpace. Let’s explore the exciting world of DeFi on Conflux!
Introducing eSpace’s DeFi Hub:
The DeFi landscape has experienced a significant transformation over the past six years, and we are just starting to uncover the immense potential of smart contracts. Today’s environment, however, is notably different from six years ago. Foundational applications that serve as robust pillars are required in every DeFi ecosystem, fostering further innovation and enhancing composability. These fundamental building blocks pave the way for the evolution and growth of the DeFi sector, enabling the creation of more complex, integrated, and efficient financial solutions.
With the introduction of Conflux eSpace, the first dApp to launch on the Conflux Network is Swappi, an AMM DEX featuring a launchpad:
Swappi
Swappi, an open DeFi protocol, is ambitiously fostering a more decentralized world. It is the premier Decentralized Exchange (DEX) on Conflux eSpace, providing the essentials of straightforward swaps with minimal slippage. Swappi is enriched with an array of captivating features, including a Launchpad for emerging projects, a Lottery system for engaging user interaction, and more. As such, Swappi is not just a platform for transactions, but a comprehensive ecosystem for the evolving needs of the decentralized finance community.
With the introduction of eSpace and its PoS staking mechanism, it’s nearly unimaginable not to have a liquid staking mechanism. The Nucleon team embarked on developing the liquid staking protocol on Conflux, aiming to restore liquidity for Conflux Network’s stakers:
Nucleon
Nucleon is an innovative liquid staking solution tailored specifically for Conflux’s Proof of Stake (PoS) system. With Nucleon, users can stake their CFX tokens without the limitations of asset locking or the complexities of securing the infrastructure while maintaining liquidity. Its primary objective is to address the challenges inherent to Conflux PoS staking — namely illiquidity, immobility, and accessibility. By making staked CFX liquid, Nucleon empowers users to participate in staking with any amount of CFX and enables them to engage in DeFi.
Any thriving DeFi ecosystem features at least one lending protocol that not only provides APY to hodlers but also offers composability to DeFi users seeking more. Goledo is the platform where casual holders and avid DeFi users come together to lend and borrow selected assets.
Goledo
Goledo, the pioneering lending protocol on Conflux eSpace, offers a platform where users can participate as either depositors or borrowers. As depositors, users can provide liquidity to the market and earn passive income in return. Conversely, borrowers can access funds through an overcollateralized process, ensuring secure and efficient borrowing. Goledo’s innovation lies in fostering a symbiotic financial ecosystem where all participants contribute to and benefit from a fluid, decentralized lending market.
dForce
dForce is a multi-chain platform that aims to develop the integration of open finance platforms that fully cover multiple stablecoins and digital and synthetic assets. The platform also offers lending and borrowing facilities.
We’ve discussed a DEX (Swappi), a liquid staking platform (Nucleon), and a lending platform (Goledo). But where do the assets come from? They can either be derived from applications with their own tokens or be bridged via third-party cross-chain bridges. Since eSpace’s inception, users have been able to bridge tokens from any network to Conflux, all in a permissionless manner. To achieve this, three primary cross-chain bridges have been utilized on the Conflux Network: Celer, Multichain, and Meson. This approach offers users the freedom to choose which tokens they wish to bridge, making it a positive and empowering experience.
To attract more developers to create sophisticated DeFi solutions, oracles play a crucial role as trusted data sources on which DeFi applications rely. The accuracy of the data provided, whether it’s the price feed of a token, stock, fiat, or real-world data, is of utmost importance. Witnet has been providing dependable on-chain data since 2021. In 2023, Pyth Network integrated eSpace for developers to access reliable, low-latency market data from institutional sources.
Conflux is actively expanding its ecosystem on eSpace. The team is also partnering with established DeFi entities on Ethereum to enhance its visibility and earn recognition within the Ethereum DeFi community. This partnership may entice them to deploy on Conflux eSpace for enhanced composability. Conflux has put forth an RFA on the Uniswap forum advocating for Uniswap to deploy its V3 on eSpace. By participating in the Curve Wars on Ethereum, $CFX gains exposure as $eCFX.
As more dApps launch on Conflux eSpace, it’s essential to have easily accessible common on-chain analysis hubs. Since 2022, DeFi users can find TVL and related metrics on DeFiLlama or fetch the latest LP-pair information on Dexscreener. We believe that more projects will discover a range of analytic tools to increase their exposure.
✨ Upcoming Projects ✨
Conflux Network is a thriving ecosystem that supports existing applications while warmly inviting new projects to expand and collaborate within eSpace. In previous sections, we explored the existing projects, and now we’re excited to give you a sneak peek into what’s on the horizon for this summer.
Conflux is home to vibrant communities and several projects that are eager to deploy on eSpace. These projects, such as vSwap, Rime Finance, Mold Finance, and Flux Fire, all share a common goal: to enhance the composability of the network and establish themselves as leaders in their respective verticals. By harnessing the power of the Conflux Network, these projects are pushing the boundaries of what’s possible and contributing to the network’s ongoing evolution.
vSwap is introducing a new level of trading freedom with their v3ry (pun-intended) first decentralized exchange solution. It aims to incentivize capital efficiency by offering concentrated liquidity.
Mold Finance is developing a decentralized derivatives exchange on eSpace, allowing users to trade cryptocurrency perpetual and other derivatives with leverage via their non-custodial wallets.
Rime Finance, is a pioneering DeFi platform on the Conflux Network. It enables users to mint its stablecoin, RUSD, interest-free against CFX collateral, promoting financial inclusivity and innovation.
Flux Fire is a launchpad that is both builder friendly and community-minded. It offers comprehensive support, funding, and resources to help builders bring their platforms to life. Check out their Twitter page at https://twitter.com/fluxfirexyz.
We’re thrilled to see that besides DeFi, there are also exciting DeFi games on the horizon, such as Galaxy Blitz and Crypto Samurai. Galaxy Blitz is set to become the first sci-fi web3 strategy game where users can forge a new empire and fight for the guilds in a distant galaxy. Meanwhile, Crypto Samurai is the first game launched on Crypto Gladiator League (CGL), where users can play the role of the famous samurai, recruit powerful generals, and plunder resources based on the Sengoku Period in Japan.
In conclusion, the Conflux Network has achieved remarkable progress in technological upgrades, strategic partnerships, and the nurturing of an innovative DeFi ecosystem on its eSpace platform since its mainnet launch in 2020. The network’s versatility and robustness have been significantly enhanced by the integration of cross-chain bridges, reliable data sources, and key DeFi projects such as Swappi, Nucleon, and Goledo.
The Conflux Network has a bright future ahead, with promising new projects such as vSwap, Rime Finance, Mold Finance, and Flux Fire. Additionally, the emergence of DeFi games like Galaxy Blitz and Crypto Samurai are adding to the positivity and excitement. As summer approaches, the Conflux Network is poised for even further growth and innovation, cementing its position as a leading blockchain network.
