India’s Largest Crypto Exchange WazirX Partners With Matic Network To Develop A DeFi Product
- The largest crypto exchange firm in India, WazirX which is based in Mumbai, has announced it has partnered with Matic Network to develop a DeFi product.
- WazirX revealed that it will launch an automated market maker which is a DeFi protocol on top of Matic Network.
WazirX, which is owned by Binance, is set to introduce an AMM DEX which will allow users to easily swap crypto assets in a decentralized way and at the same time earn fees through provision of liquidity.
In a blog post, WazirX explained that it chose to develop the AMM DEX on Matic Network so as to bypass the performance bottlenecks within the DeFi space through high-speed as well as low-fee infrastructure.
The partnership was inspired by the recent growth in trading volumes of AMM-based DEXs such as Uniswap. DEXs allow running of openly accessible chain liquidity pools for various tokens. WazirX explained:
“The DeFi movement has picked up globally and WazirX plans to make it easy for billions of Indians to participate in the DeFi ecosystem.”
However, the Mumbai-based exchange has chosen Matic rather than Ethereum which is at the moment the market leader in the DeFi sector. WazirX CEO, Nischal Shetty, explained that high transaction fees as well as scalability within the Ethereum network were the main aspects that led the firm to choose Matic.
Indeed, high transaction costs within the Ethereum network have been a concern which have increased by over 3,000% annually rising to over $6. Matic network charges relatively low costs which averages at $4.
Binance, the largest crypto exchange firm in the world, acquired WazirX last year to expand its global presence in India. AMM’s testnet is set to be launched in September.
According to Shetty, the DeFi project is purely WazirX’s project adding that they were appreciative of Binance’s support.
Crypto trading volumes have risen in India following the Supreme Court’s lifting of the crypto transactions ban by the Reserve Bank of India in March and analysts see India as one of the most promising crypto markets in the world.