First DEX Launches on Internet Computer Blockchain

Prior to the launch of the Sonic decentralized exchange, Dfinity Foundation published a new whitepaper. According to some sources, two more exchanges are in the works for the organization.

The first version of the Sonic DEX was launched on Sunday, January 22. As of now, there are three pools for token swaps: InterICP/WICP (wrapped ICP), ICP/XTC (Cycles Token), and WICP/XTC. The exchange uses Internet Computer blockchain’s native token, the Internet Computer Protocol (ICP). Users providing liquidity are eligible for special rewards.

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Other tokens will be added to the exchange based on community demand. According to the developers, the only requirement is that the tokens support the DIP20 standard.

In a Medium post introducing Sonic, Dfinity emphasized two of the platform’s standout features – 1-second transaction finality and zero gas fees.

<...> users can now access permissionless token swaps and liquidity services over the protocol — where the Internet Computer’s reverse gas model introduces a new era of DeFi with zero gas fees and 1-second transaction finality.

Within the first three days of Sonic’s launch, the exchange had already processed more than 11,000 transactions which amounted to roughly $360,000 in worth, Dfinity states.

Thanks to Internet Computer’s direct integrations with other blockchains like Bitcoin and Ethereum, the Sonic decentralized exchange will be able to provide multi-chain services. Nicolas Poggi, COO of Dfinity’s partner, Web3 product studio Psychedelic, said:

[Multi-chain functionality] could potentially enable having swap pairs, liquidity pools, and other DeFi protocols on the Internet Computer with a mixture of both local IC assets, and tokens from other chains.

According to a comment made by Michael Less, Dfinity Head of Communications, the Sonic DEX could redefine the decentralized finance (DeFi) ecosystem, setting a new example for DEX developers.

In the coming weeks, everything in the product should be made completely open-source. Plans for Sonic V2 are already in development. They include adding a token Launchpad, introducing decentralized autonomous organization (DAO) tools, and Sonic’s own governance token. There is no launch date for Sonic DEX V2 at the time of writing.

The Internet Computer public blockchain was launched by Dfinity in May 2021. The goal of the protocol is to develop a fully decentralized internet which would allow developers to install decentralized applications (DApps) and install smart contracts straight on the blockchain.

Based on Dfinity’s information, there are more than 1,000 developers developing DApps and metaverse projects on the Internet Computer blockchain, including Desocial, IC Gallery, and MetaSports Basketball.

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