With many different DeFi applications built on different blockchains out there, users often find it too overwhelming and complicated to go to different networks just to try different apps.
That’s why we need one unifying solution. That solution is provided by Despace Protocol, where you can access all the different decentralized exchanges (DEX-es) and other kinds of DeFi apps within one same UI.
To achieve its objectives, Despace Protocol utilizes DeChain – a layer 2 solution that is compatible with various layer 1 blockchains.
To truly understand how Despace Protocol works, first and foremost, you must understand what DeChain is. After all, DeChain is the main engine behind all Despace Protocol utilities.
As explained briefly earlier, DeChain is a layer 2 solution that is compatible with many different layer 1 blockchains. DeChain uses the combination of Proof-of-Transaction and Delegated-Proof-of-Stake (DPoTS) as its consensus algorithm.
The DPoTS mechanism will require the network participants to do two steps before they can earn incentives. Step one, they must have enough user activity (such as sending out transactions or voting for a DIP) that will be “wrapped” in the blocks of transaction. Step two, they still need to stake DES tokens. Here is a further explanation of our DPoTS mechanism:
With our DPoTs consensus algorithm, only users who complete both of the two steps above will be able to earn rewards in the form of DES tokens.
DeChain will act as the unifying force and bridge among the popular layer 1 chains such as BSC, Ethereum, Polkadot, and more. All of the different DeFi applications built on different chains will be displayed by one single application with lower transaction fees and higher transaction throughput thanks to DeChain.
As you can see above, DeChain will be compatible with all Substrate-based chains as well as EVM-based chains. These include the likes of Polkadot, Kusama, Polkadot parachains, Ethereum, BSC, Avalanche, Fantom, Polygon, and many others.
On top of that, Dechain also has bigger block transaction sizes to decrease wait time and cheaper transaction fees compared to the competition.
The potential is huge since DeChain aims to become the most versatile layer 2 solution with various use cases that will seamlessly operate on multiple layer 1 chains.
As for the nodes that support the DeChain network, they communicate with each other via sockets and reach consensus through the DPoTS mechanism that we have explained above.
How about interoperability? DeChain smart contracts are deployed on multiple layer 1 chains, and these smart contracts are the key to relaying information to each other across all these chains.
If you want to learn more about all these technologies in-depth, I invite you to read our SpacePaper.
In the above sections, you have learned the basics of DeChain. Now it’s time to see what DeSpace Protocol can offer thanks to the technologies of DeChain. In short, DeSpace Protocol have four main product offerings, they are:
- DeFi Aggregator Protocol
- NFTs Aggregator Protocol
With our DeFi Aggregator Protocol, we will unify all the different DEX-es and their LPs within one single UI. The idea here is that all users who trade or provide liquidity using our unified UI will be able to earn DES tokens as a reward. This is our advantage compared to using all these individual DEX-es where end-users receive little to no rewards.
Meanwhile, our NFT Aggregator Protocol will combine multiple NFT marketplaces into one UI with extra gamification features. Our NFT aggregator protocol users will be able to earn DES tokens every time they make a completed NFT transaction on the app.
The third product offering from Despace Protocol is called DeLend, a crypto lending platform that aims to issue stablecoin with a collateral mechanism similar to MakerDAO. DeLend will release stablecoins pegged to fiat currency valuations, such as dUSD, dEUR, dPound, and others. DeLend will also offer interest to the users who provide liquidity to other existing DeFi apps through DeSpace protocol.
The fourth product offering is named DeSwap, which is our cross-chain DEX platform utilizing DeChain technology. While it works similarly to other cross-chain DEX-es when it comes to crypto swap and providing liquidity, it provides some extra features such as on-chain order books and margin and future books.
Despace Protocol has one native cryptocurrency which is called DES token – it basically serves as the incentive mechanism in Despace Protocol. Here are the full details of the tokenomics:
Despace Protocol was launched in 2021, and we are still developing all the products and offerings and will continue to do so for a very long time.
We believe Despace Protocol will be able to compete against the very best DeFi and NFT solutions out there. Once all the product offerings are fully live, we expect our users’ activity in DeChain to grow exponentially.