GEMMA Decentralized Exchange
The GEMMA ecosystem consists of a variety of solutions such as the NFT Minting Platform, a comprehensive DEFI ecosystem, a decentralized exchange, a recommender program, and its own GEMMA token.
GEMMA Decentralized Exchange
GEMMA will develop and support various dApps (decentralized applications). This group of dAPPs will be called the GEMMA planet and will include staking, swapping, wallet, yield farming, and lottery platforms.
DEXs (decentralized cryptocurrency exchanges) enable users to conduct peer-to-peer transactions without the involvement of a middleman or a third party. All the access remains with the user. Users tend to like this more because of its anonymity feature. No one knows who the buyers or sellers are. Such exchanges don’t require any KYC. There is no risk of hacking as the assets remain with the account holder itself. However, there is a certain risk of losing funds if the user forgets the private keys and passwords to their crypto wallets. There is no provision for fiat currency exchange in a decentralized form of exchange. Decentralized exchanges lack trading volume due to which they lack liquidity. During the times when trading volumes are low, it might be hard to discover buyers and sellers.
Liquidity Pools
The GEMMA DEX platform will comprise liquidity pools. Users will be able to add liquidity in the pool by depositing a pair of tokens into it.
Liquidity pools refer to the pools of crypto tokens or assets that offer better returns to users compared to money markets. These pools are smart contracts that hold or lock up the assets to enable trading while providing high liquidity. They are helpful for diverse platforms for offering essential liquidity in different cryptocurrencies.
Liquidity pools require liquidity providers to operate correctly. Liquidity providers invest assets in liquidity pools to receive incentives from the Defi platform. Fees created by the Defi platform are used to reward liquidity providers.
Some liquidity pools provide rewards with multiple tokens. These tokens can be deposited in another pool of liquidity to obtain additional compensation.
GEMMA Pool
There shall be a pool of different tokens on the platform where users will be able to deposit their tokens & earn GEMMA tokens as rewards. GEMMA Network’s GEMMA Token and wrapped tokens of the other blockchain which are listed on the GEMMA Network will be available for the pools.
GEMMA Swapping Platform
Swapping refers to exchanging one crypto coin for another. The GEMMA Swapping platform will enable users to swap every possible pair of tokens that will hold liquidity on the platform.
GEMMA Network tokens and wrapped tokens of other blockchain registered in the GEMMA network can be swapped on the platform.
The platform will be fortified by a liquidity pool and an Automated Market Maker (AMM) to facilitate the swapping process.
Cross chain swapping, also known as atomic swapping, is a smart contract equipment that allows tokens to be exchanged in two different blockchain ecosystems.
Users can exchange tokens directly through different blockchains without an intermediate manager or central agency.
The GEMMA planet allows users to exchange GEMMA tokens for wrapped GEMMA tokens that can be used in the following five blockchains:
GEMMA DEX functions as a non-tariff cryptocurrency trading platform that allows users to completely control their wallets. Wallet owners can control and use their coins, passwords, and keys 100 percent. No central company is authorized to hold their passwords, keys, cryptocurrency tokens or coins. Like all exchanges, GEMMA DEX is available as an exchange through mobile and desktop applications and browser extensions. By clicking on only one "connect" button, the wallet can be easily linked to the exchange platform.
Anonymity: Because there is no real-name authentication procedure, users can keep their wallets anonymous unless they are linked to personal information.
Reduction of risk due to a third party: Only the parties using manage the coins, and no one else has the authority to do so. However, at the same time, wallet providers may have related risks because malicious code may be included in the app.
Open source wallets reduce this risk because many people examine whether the code is defective. However, as we have seen countless times, open-source is not flawless.
P2P transactions: Users of the platform can partake in ICOs, buy unlisted currencies, or use platforms like uniswap or PancakeSwap that offer lottery and interest-bearing features.
Here is the formula which will be used to decide the price of the tokens in swap:
GEMMA Farming Platform
Yield farming, also known as liquidity farming, includes generating rewards with cryptocurrency holdings. Simply put, it enables users to generate rewards by locking up their crypto assets.
In the case of a liquidity pool farm, users must deposit digital currency in a smart contract configured to provide a liquidity pool. The operation of this pool is similar to the operation of a distributed transaction pair consisting of two or more cryptocurrencies.
In LP Farm, only digital assets provided by liquidity providers can be traded. Liquidity providers are compensated for LP tokens in return for depositing funds in a DEFI app. Yield farming tokens not only increase interest in transaction fees, but can also contribute at any time to the collection of deposits that support the liquidity pool.
A liquidity provider's token is important because a defi app that runs a liquidity mining program creates a staking interface for depositing tokens. As a result, the user may be provided with automatic and continuous governance token compensation due to a freeze in liquidity.
GEMMA Lottery Platform
The GEMMA lottery platform will enable users to buy lottery tickets by using GEMMA Tokens on the DEX platform. Users who purchase the lottery ticket will get a unique 4-digit number created by a smart contract. The winner of the lottery will be decided using this random number. The total amount of the lottery will be divided based on winners (considering the number of digits) whose four-digit unique numbers match random numbers generated by smart contracts.
Example: If the user's unique number is 1234 and the random number generated in the smart contract is 2134, then 3 and 4 match random numbers. At this time, the distribution of the lottery amount is as follows.
A% of the share of the lottery amount will be equally distributed among the users whose number of matched digits is 4.
B% of the share of the lottery amount will be equally distributed among the users whose number of matched digits is 3.
C% of the share of the lottery amount will be equally distributed among the users whose number of matched digits is 2.
D% of the share of the lottery amount will be burned.
E% of the share of the lottery amount will be sent to the platform pool.
Last updated
