STON.fi Blog

The Cross-chain Decentralized Exchange allows participants to use one platform to exchange tokens issued on different blockchains via the DeFi system, i.e. without third parties that could potentially change the transaction course and asset price. Hashbon Rocket or, say, O3Swap, are considered to be the first DeFi applications that used CDEX opportunities. Transactions on the CDEX are made with the involvement of oracles and arbitrageurs; the former provide the platform with confirmed data collected off-chain, and the latter are holders of a considerable number of tokens of this particular platform. Together, they guarantee the security an

An oracle is software that finds and confirms data from the outside world (off-chain) and transfers it to the smart contracts on the blockchain (on-chain). One particularly illustrative example is the transfer of information from exchanges and price aggregators to the smart contract controlling the liquidity pool. The information oracles transfer contains the prices of different cryptocurrencies represented in the liquidity pool. In a general sense, an oracle is any service that can transfer to the blockchain data it does not possess. Oracles can be centralized (i.e. managed by one organization) or decentralized (managed by a DAO): the

DeFi (Decentralized finance) is a general term denoting various financial applications based on the blockchain and cryptocurrencies that are aimed at creating an alternative financial system that works without intermediaries. When any such DeFi applications are created, equal participants of the community have access to copies of their transaction histories. Consequently, the transactions are not controlled by any centralized body, which means that they cannot be altered or falsified. In terms of functional potential, DeFi applications offer the full range of traditional financial instruments, but often provide a higher income due to th

Currently, blockchain technology is not tied solely to cryptocurrencies. It is estimated that blockchain is used in more than 50 industries, from tracking the distribution of energy resources in real time to registering land titles. Here are some examples of how blockchain is applied in completely unexpected spheres, introducing new opportunities: After the discovery of E. coli bacteria in packages of lettuce, Walmart and Sam's Club proposed the use of blockchain technology to control the freshness of products. According to their idea, a customer at a self-service checkout could scan any product and find out where it was grown/produced

A liquidity pool is a basis for DeFi that does not have an exact equivalent in the classical financial system. In simple terms, a liquidity pool is a smart contract where a certain number of tokens is blocked so that any DeFi participants can use them for exchanges, crediting, blockchain games, profitable yield farming, and other operations. Decentralized exchanges (DEX) that use automated market making (AMM) work on liquidity pools. The providers who bring liquidity to the pool receive compensation when traders use their funds. Liquidity pool users get immediate access to the tokens they exchange. There are no intermediaries in this proce

You can learn about the differences between Decentralized (DEX) and Centralized (CEX) Exchanges here . Now we’ll briefly cover how to trade on a DEX. The exchange process itself is extremely simple. You do not need to register on the exchange, make a deposit to trade, or submit your personal data to the exchange operator. You just connect your crypto wallet and immediately see all the tokens available to exchange. Then you choose what you want to exchange and confirm the transaction – and the tokens you acquired are instantly transferred to your wallet. There are no centralized intermediary companies involved in this transaction; the ex