Introducing Spectrum Finance — a cross-chain exchange
Howdy, ErgoPad folks! You’ve been waiting patiently for the next IDO announcement, and now it’s here. We are pleased to announce Spectrum Finance fomerly known as Ergo-DEX as the next IDO. Let’s begin by introducing the general concept of Spectrum Finance.
Spectrum Finance is a cross-chain open source decentralized exchange, or better called “DEX.” Spectrum Finance’s primary defining feature is that it was constructed on top of the multi-chain network known as Spectrum Network. Why does that matter?
One of the things that sets Spectrum Finance apart from other DEXs is the fact that it is constructed on top of a multi-chain network also known as Spectrum Network. Why? You can trade or exchange native assets between protocols and blockchains on the decentralized exchange without having to wrap them in any intermediary currency.
Here is an example: ADA → ETH, BNB → ERG
About Spectrum Finance
Spectrum Finance, formerly known as ErgoDEX, is the first decentralized exchange to be created on top of the eUTxO model. In addition, their decentralized exchange has been fully operational on the Ergo blockchain for more than a year, and they just recently made its Cardano testnet DEX available to the general public. They think that by utilizing the strength of the eUTxO model, they will be able to provide customers with a DeFi experience that is superior than any DEX that has ever existed.
The Spectrum Finance team is of the opinion that the potential for product development to head in the incorrect path is significantly reduced when managers are not in charge of leading a project, but rather when those individuals who actually understand and care about all the details of the product do so. Spectrum Finance has always been and will continue to be an open-source project, as this was one of the founding principles from the very beginning, which continues to be the case.
In addition, the Spectrum Finance project will never stop being completely open-source and transparent. The developers emphasize the fact that they will not keep any secrets from their community, as they have big ambitions to deliver a project that is open and accessible to all.
Back in its foundation, Spectrum Finance was founded and built by Ilya Oskin and Yasha Black. They were Ergo developers over several years and were engaged in development of the Ergo blockchain explorer, protocol reference client, built-in node wallet and more. These two individuals were the original members behind this project that consisted of almost 20 persons at the time this article was written.
What does Spectrum Finance also offer?
- AMM DEX on Ergo: The automated market maker DEX was successfully launched on the Ergo blockchain, and it is now operating with more than 60,000 swaps already.
- AMM DEX on Cardano: The Spectrum Finance team just successfully released the testnet of the AMM Dex on Cardano, and they are currently working on releasing the mainnet on Cardano.
What’s coming next?
- Yield Farming: This tool is currently being developed and is anticipated to be available in Q1, 2023. It will enable anyone to earn rewards in any token for putting or providing funds into a specific pool.
- Spectrum Network: Spectrum Network is a multi-chain network for native cross-chain DeFi, which documentation is currently being written and worked on.
- Spectrum Finance cross-chain DEX: The Spectrum Finance team plans to introduce a cross-chain DEX on every blockchain, including ERG,ADA ETH, BSC and AlGO, in the future.
- Spectrum Finance cross-chain Wallet: The exclusive wallet created by the Spectrum Finance team will be the Spectrum Finance wallet, which enables you to hold practically all native assets from different blockchains.
- Spectrum Finance DAO: The Spectrum Finance DAO will be made available in order to move decentralization and transparency to the next level, enabling its own community to participate in voting, discussions, and engagement activities about specific Spectrum Finance DAO decisions.
Spectrum Finance Token:
Spectrum Finance’s own token, the Spectrum Finance Token (SPF), will be released at the next IDO on ErgoPad. On a side note, the SPF token will be a cross-chain token on both Cardano and Ergo. This means that there will be another token minting on the Cardano side. 50% of SPF token will be minted on Spectrum Network as a reward for network validators.
As the protocol changes, more and more utility functions will be added. Let’s go over the main ones quickly:
Off-chain executors’ fees: Users will be able to pay fees to off-chain executors not only in native currencies (like ERG or ADA), but also in SPF. On the other hand, people who run bots off-chain will be able to earn SPF. This utility function will be available on Ergo right after the token launch.
Spectrum Networks validators reward: SPF will be used as a reward for validators who keep the network safe; Protocol fees will go down, and cross-chain operations will cost a penny in the future. SPF tokens will be used to pay this fee.
Protocol fee reduction: Protocol fees will go down, and cross-chain operations will cost a penny in the future. SPF tokens will be used to pay this fee.
Spectrum Finance Links
Final Remarks and IDO details:
Now what? How can I participate in the Spectrum Finance IDO?
Spectrum Finance will IDO through the Ergopad platform, with two early contribution rounds. The DAO will raise funds using smart contracts, which lock tokens in vesting contracts. To participate in these pre-IDO rounds, your wallet address must have engaged with the Spectrum Finance Dex or, you have to stake Ergopad tokens in the tier system. The second round of the IDO will be open to the public.
- Community Round;
- Public Round;
- SPF/ERG liquidity pool launch.
Both Community and Public rounds consist of whitelisting and contribution phases. Express your interest and claim your whitelist tokens for your SPF allocation during the contribution period.
The Community round is exclusive to Spectrum Finance protocol users and ErgoPad stakers, while the Public round is open to everyone.
Community and Public rounds of the IDO will take place on a specialized platform that is designed specifically for the token sale. This platform can be accessed through the Spectrum Finance DEX, which serves as a gateway to the IDO.
After the Community and Public rounds, an SPF/ERG liquidity pool will be launched with provided liquidity, where everyone can swap and provide liquidity as usual.
10% of purchased SPF will be unlocked on the day of the SPF/ERG liquidity pool launch for each participant, regardless of which round he participated in. Tokens will be vested over 6 months and will be claimable on the IDO platform.
If you are unfamiliar with how Ergopad IDOs work, read the Ergopad Whitepaper and take a look at the Ergopad Staking page. If you still have questions, the Ergopad Telegram and Discord groups are full of helpful people.
For more information, you can read the Spectrum Finance project page on ErgoPad, which will include the project team, socials, IDO roadmap (including all relevant dates), whitepaper link, and tokenomics, as each gets finalized.
We sincerely thank each and every member of our community for their support. We will continue to update you on the IDO process through our socials.
Stay tuned for more news and updates!
Thanks for reading, and see you next time.
-The ErgoPad Team