What makes Chainflip Labs, a cross-chain trading platform invested by Blockinntera Capital, special?

Researcher arndxt wrote an analysis and interpretation of the working mechanism, features, core driving mechanism, and token economics of the cross-chain trading platform Chainflip Labs. Arndxt expressed great optimism about Chainflip Labs because it has built a future for DEX across the entire chain, and the concept of cross-chain exchange using native tokens will pave the way for large-scale adoption.

Chainflip Labs is a cross-chain automated market maker (AMM) that enables users to directly exchange tokens on different blockchains. It solves the biggest pain point for new users, who can initially connect with the MM and integrate with more wallets later, and only need to enter their address to make a swap. Chainflip Labs has no custody risk, no deposit/withdrawal process or approval required. Users can simply click to swap between different chains, similar to a CEX. Additionally, users can participate in the underlying protocol operation as liquidity providers, builders or through governance.

Chainflip Labs does not require KYC, has no intermediaries, lower slippage, and decentralized node operators and governance. Its core driving mechanisms include: 1) JIT AMM: Unlike traditional AMMs that expose LP to impermanent loss risk, JIT AMM allows market makers to provide one-sided liquidity at any instant quote, solving impermanent loss risk; 2) MEV: Chainflip Labs provides incentives for liquidity providers to ensure users always get better prices.

Reference: https://twitter.com/arndxt_xo/status/1676977517109059584

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