About WAX

1.What is Defibox? How is it different from Alcor?

Defibox is a one-stop DeFi application platform. It was launched on the EOS in July 2020. With low transaction fees, fast operations and multi-protocol functions, it has rapidly accumulated a large number of users, with a highest TVL record of 39.19 million EOS, it has become the EOS leading DeFi project. In July 2021, Defibox started the road of multi-chain exploration and launched on the BSC and WAX successively, hoping to bring more trading experience to users of different public chains.

Alcor Exchange was the only exchange (DEX) on the WAX chain. Tokens purchased or earned by users on game items can only be traded on Alcor. However, due to the problem of depth, Alcor focuses more on the order book model, and the trading principle is similar to the purchase/sale of P2P pending orders in traditional exchanges. Unlike Alcor, Defibox uses an automated market maker (AMM) model.

The Automated Market Maker (AMM) model fundamentally changes the way users trade cryptocurrencies, with both parties interacting with on-chain liquidity pools. In 2018, Uniswap boldly replaced the traditional order book model with an automatic market maker mechanism, and it became a big hit. Since then, the automatic market maker (AMM) model has gradually replaced the order book model, and has been widely used in public chains such as ETH chain and BSC chain, and is deeply loved by users.

Therefore, compared with the Alcor trading platform, Defibox using the AMM mechanism has three major characteristics:

a.Fair transaction without manual intervention

In Defibox, automatic market makers are robots composed of smart contract codes. They operate without an intermediary organization that clears transactions and rely on self-executing smart contracts to facilitate transactions, which is very fair. Order book-based DEXs are easily affected by market manipulation, such as dumping or faking orders.

b.The liquidity provider is the owner of Defibox, and LP can earn transaction fees

In Defibox, the platform only provides technical support, and the user is the true owner of the transaction. Everyone can become a Liquidity Provider (market maker), providing funds for different liquidity pools. Liquidity providers, on the other hand, can earn income through transaction fees. (Defibox will charge a 0.1% fee for all Swap transactions, 0.2% of the fee will be distributed to market maker liquidity providers as rewards).

c.Simple operation, instant transaction

Unlike the Order Book Model, due to the slow speed of on-chain transactions, user buy orders cannot be matched in time. Defibox adopts the AMM mechanism and can operate without an intermediary organization that clears transactions, relying on self-executing smart contracts to facilitate transactions, and this dynamic enables instant transactions.

Trading on Defibox is also very simple and smooth, and you can directly see the price, quantity, handling fee and other information that will be traded. At the same time, when trading, users can set their own slippage tolerance and so on.

2.Is Defibox safe?

Defibox has been proven safe for three reasons:

1.Until March 12, 2022, Defibox has been running safely for 600 days, and has not been hacked during this period.

2.Defibox has passed the security audits of multiple third-party audit institutions: SlowMist Technology and Peckshield Technology.

3.Professional risk control team and testing team have perfect risk control for products, business logic, smart contracts, back-end servers, etc.