Decentralized exchange Gravity DEX will hold a testnet competition for its Cosmos-based protocol, it said in a release yesterday.
It is the first interchain decentralized exchange created for the Cosmos and will connect any protocol connected to the Cosmos ‘Hub’—the first of the many interconnected blockchains that will eventually comprise the Cosmos ‘Network.’
The DEX combines batch execution, order books, and limit orders with an AMM to significantly outperform the CPMM model as seen on other platforms, such as Uniswap.
It is built by B-Harvest, which was acquired by Cosmos incubator and core contributor Tendermint last month. Cosmos CEO Peng Zhong, explaining the acquisition said:
“Tendermint is bringing B-Harvest in-house to launch and scale Gravity DEX so that any token within Cosmos can be traded freely on a (decentralized) exchange.”
5000 ATOM for grabs
As per the post, Gravity DEX has submitted a formal governance proposal to allocate over 5000 ATOM ($101,000 at press time) from the Cosmos Hub community pool to use as prize money for the upcoming Gravity DEX testnet competition.
Voting on the governance proposal begins today, April 7th, 2021. The Gravity DEX enables decentralized trading between any two Cosmos tokens — an estimated $90 billion market that includes projects like ATOM, Binance Coin (BNB), Terra (LUNA), and Crypto.com Coin (CRO) — or any other token.
The next phase of the Gravity DEX rollout would a weeklong testnet competition for traders, arbitrageurs, and bug bounty hunters to earn prizes totaling more than $200,000. Registration for the Gravity DEX testnet competition opens on April 21.
What’s Cosmos and why DEXes?
Cosmos, for the uninitiated, is an ambitious project that consists of parallel, independent blockchains supported by Byzantine Fault Tolerant consensus algorithms like Tendermint. The protocol aims to allow users to trade digital assets that are native to one blockchain for coins on another blockchain, such as, for example, trading Bitcoin for Ethereum.
DEXs, unlike traditional exchanges, have no centralized counterparty, meaning they are fully managed by groups of developers present worldwide and all platform liquidity is, in essence, provided by proponents and users themselves.
This helps reduce the risk of theft from the hacking of exchanges or other centralized, ulterior motives while helping lay the groundwork for the broader inclusion of cryptocurrencies in daily life.
As such, the Gravity DEX is built on the Inter-Blockchain Communication (IBC) protocol, which enables a permissionless, trustless exchange of cryptocurrencies while tapping into liquidity pools across dozens of protocols efficiently with its proprietary Automated Market Maker (AMM).
Meanwhile, B-Harvest Founder Hyung Lee will take on the role of Head of DeFi at Tendermint as part of the acquisition. Hyung Lee said:
“After 3 years of contributing to the Cosmos ecosystem, we are very excited to join Tendermint for more accelerated development of financial applications building with Cosmos-SDK.”
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