DeversiFi

  • Cryptoasset Report
  • October 2, 2018

DeversiFi is an Ethereum-based non-custodial exchange with a focus on off-chain transaction settlement.

Overview

DeversiFi is an Ethereum-based non-custodial exchange with a focus on off-chain transaction settlement. Originally part of the Ethfinex project, a Bitfinex sister company, the exchange along with its core technology and token economy migrated and rebranded in 2019 to the new DeversiFi platform. DeversiFi combines a non-custodial treatment of assets with a centralized order matching service while also making increasing use of decentralized protocols for trade settlement, namely 0x.

Project Details

DeversiFi currently uses 0x and its wrapping functionality to conduct trade settlement but is in the process of transitioning to an alternative design that uses StarkWare’s zk-STARK-based off-chain settlement, promising throughput up to 8,000 trades per second. Unlike platforms that might be considered pure DEXs, DeversiFi relies on a centralized order matching service, arguing that this design choice offers a comparable level of user experience to that seen on centralized venues with which DeversiFi is ultimately competing for users. Instead, the platform believes that the true benefit of services such as itself is the ability to allow users to retain custody of their assets while trading, to wit, DeversiFi allows its users to store their cryptoassets on both hardware and software wallets.

Asset Details

The Nectar Token (NEC) is a utility and governance token for use within the DeversiFi ecosystem. Since the transition to DeversiFi, the project has made attempts towards decentralizing the project’s governance and token economics through the launch of a DAO in December 2019 that among other governance rights grants NEC holders the ability to adapt the protocol’s token economy while the project has also burnt 80% of its tokens, thereby significantly reducing its ability over governance decisions. Following the adoption of new token economics, as detailed in the project’s updated whitepaper, NEC has a deflationary monetary design with 45% of trading revenues now used to buy back and burn NEC tokens. Aside from its ability to confer indirect cash flows to holders through its burn policy, the NEC token grants bearers trading discounts to the standard 0.25% fee and governance rights through the Nectar DAO.