Singapore, May 04, 2021 (GLOBE NEWSWIRE) — Decentralized finance (DeFi) aims to bring unmediated access to financial services to everyone with an internet connection. Despite its notable rise in the last year, DeFi has been a victim of its own success. Ethereum birthed the most popular protocols and supports the bulk of DeFi activity. Yet, as dApps grew, their success highlighted the network’s current shortcomings, i.e., high cost per transaction and limited throughput.
This opened the door for new players to build alternatives and users to move assets to other chains in search of lower costs. Beyond anything else, this underlines the power of ethereum’s product-market fit. Indeed, we’re rapidly moving toward a multi-chain future where a group of interconnected and niche-specific blockchains work together to support demand, and this is where Glitch Finance comes in.
What is Glitch Finance?
Glitch is a custom-built blockchain specifically for trustless money markets. At its core, the project is about better access, lower costs, and novel community reward mechanisms. Glitch is building a DeFi “operating system” to help minimize barriers for retail investors and developers looking to expand the reach of their products or services. It improves on the technical advances made by existing chains and stands out by offering a unique token wrapping feature, scalability from layer one, and a unique dividend model.
Glitch approaches scalability from layer one, aiming for low-latency transactions with enough capacity to support high transaction volume in the near term. Glitch will use a consensus protocol known as Delegated Proof of Stake (DPoS) to boost transaction speed to meet the requirements of mainstream use. The DPoS system not only has material upgrades over proof of work or proof of stake, but it also introduces a system where voting power lessens with time to ensure fair governance—a critical factor when it comes to plans for the Glitch DAO.
Glitch will feature a unique reward-sharing system to drive user and developer adoption. Every dApp on Glitch will automatically share revenue through a vault funded by network participants. By default, 20% of all fees and revenues from dApps are deposited into a vault on the Glitch protocol and then shared to $GLCH (the network’s native token) stakers and holders. This creates a positive feedback loop where users are rewarded, and developers are encouraged by the community support to generate additional revenue.
Token wrapping on the Glitch network will involve mirroring ETH and ETH assets on the platform with its GRC-20 token standards. Users with assets from other blockchains will be able to register their addresses on the Glitch protocol and get their tokens mirrored as a GRC-20 coin. In this way, developers can easily simulate dApps and products from Ethereum and other blockchains (as they are incorporated) while benefiting from faster throughput and circumventing high transactional fees.
In addition, Glitch is building bridges to connect the GLCH token with other blockchain ecosystems. The first of these is to Binance Smart Chain. Currently, GLCH holders can easily swap their ERC-20 GLCH for a BEP version, and in the future, this will be an integral tool for interoperability between Glitch and the other blockchains.
Glitch Decentralized Exchange (GEX)
Another of the core elements of the Glitch protocol is the Glitch DEX, also known as the GEX. The GEX is an on-chain and permissionless peer-to-peer exchange that enables quick, cheap, secure, and decentralized asset swapping. The GEX uses the same Automated Market Making (AMM) as other DEXes but focuses on real-time settlement due to the lightning-quick Delegated Proof of Stake (DPoS).
Glitch is a project founded on the belief that for DeFi to meet its full potential, it needs more dedicated infrastructure — systems that are easy to use, scalable, and capable of uniting an entire ecosystem of dApps. The team behind the protocol, Glitch Finance, is currently expanding its ranks, forging new partnerships, and working toward their next big goal: a testnet launch of future bedrock infrastructure.
Learn more about Glitch
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