First Decentralized Exchange on Dfinity’s Internet Computer Launches

·2-min read

The Dfinity Foundation has announced the launch of Sonic, the first decentralized exchange (DEX) to go live on the network.

On Jan. 23, the Foundation stated that Sonic v1 has launched to mainnet where users can swap tokens and earn liquidity provider rewards. There are initially only three pools for token swaps using its native token: ICP/WICP (wrapped ICP), ICP/XTC (Cycles Token), and WICP/XTC. Liquidity provider rewards are available for the WICP/XTC pool.

The DEX has been touted as a “gasless Automated Market Maker (AMM)” whereby users can add new tokens and create new pairings as they do with Uniswap. There are no network fees, but users will pay a 0.3% swap fee for transactions, part of which will go to liquidity providers.

The fixed set of pairs are temporary, the team explained, adding that to start with, the team will handle additional tokens.

“This is not an effort to gatekeep, but rather to vet for malicious tokens until we have an automated system in place to do so.”

Building a Decentralized Internet

Over the past five years or so, Dfinity has been developing the Internet Computer, a revolutionary blockchain network that has the lofty ambition of replacing the trillion-dollar legacy internet and IT industry.

It aims to do this by allowing developers to install their software directly on the public internet, therefore avoiding centralized hosting companies, servers, and commercial cloud services.

The Dfinity Foundation plans to build upon the DEX with Sonic v2 which will offer a token Launchpad, DAO (decentralized autonomous organization) tools, and its own native SONIC governance token.

There was no launch date given for the SONIC token, but the announcement did reveal that there will be 5% in a public sale, the team will get 20%, and the remaining 75% will go to the community via airdrops, an ecosystem fund, liquidity incentives, and treasury.

ICP Token Price Crashes

The protocol’s native token has been battered yet again and has been one of the worst-performing crypto assets over the past year. After spiking to around $700 during its much-hyped launch in May 2021, ICP prices have collapsed by 97% to current levels.

The token is currently hovering around $20 after dumping 33% over the past week. No news, positive or otherwise, has been able to spur momentum for this crypto asset which has sunk from a top ten position down to 34 in terms of market capitalization.

This article was originally posted on FX Empire