Place/Date: - April 13th, 2021 at 7:01 am UTC · 3 min read
Contact: Robert Penington, Source: XFai
Decentralized oracle service provider XFai welcomes Digital Strategies as a strategic partner. The renowned blockchain and digital asset investment firm will become an initial liquidity provider to the launch of the project’s native $XFIT token. Digital Strategies is set to support the launch by adding their funds directly into the project’s groundbreaking Liquidity Generation Event, or LGE.
Set to take place on April 15, this innovative new funding model is an improvement on the Token Generation Event that lets participants add their purchased tokens into a liquidity pool automatically, all in a single transaction. This saves them gas fees and avoids failed transactions, slippage, and impermanent loss.
These key features of the Liquidity Generation Event are possible thanks to the XFai Potentializer, an easy-to-use interface for “supercharged liquidity farming.” Digital Strategies believes the Potentializer will become a vital component of the DeFi industry. The firm’s role as an initial liquidity provider all but ensures both the event and the Potentializer’s success.
Digital Strategies’ interest in XFai is also due to the project’s key infrastructure solutions for the fast-growing sector. Its portfolio includes industry-defining initiatives such as Polymath, Casper Labs, Fantom, Kyber Network, and Hedera Hashgraph. Likewise, the firm’s bet on XFai is based on an equal assessment. The project’s DEX Liquidity Oracle, or DLO, promises to level the playing field for small to mid cap tokens.
The DLO consists of a set of smart contracts that improve upon the price feeds of regular oracles by providing automated liquidity management. This allows XFai to effectively channel the liquidity between centralized and decentralized exchanges providing small to mid cap tokens with liquidity opportunities they don’t have access to under the current industry paradigm.
The Digital Strategies team has shared its outlook on XFai’s overall potential.
“Digital Strategies is excited to be a strategic partner for XFai protocol. The XFai protocol is a simple liquidity solution for long-tail crypto assets trading on AMM-based decentralized exchanges. By leveraging its innovative DEX Liquidity Oracle, XFai can create a dynamic order book for pairs on decentralized exchanges with a best-in-class trading experience. With further adoption of the XFai protocol, we believe more liquidity and trading of long-tail crypto assets will be gradually shifted from centralized exchanges to decentralized exchanges, which will lead to more utility of long-tail assets and better composability and interoperability for the DeFi world.”
It can be estimated that XFai’s DLO opens a $250 billion market when taking into consideration the cumulative market capitalization of the blockchain projects it helps. This and other important solutions such as the avoidance of slippage and impermanent loss make the project an appealing investment to Digital Strategies as well as other prominent firms like AU21 Capital, DL Capital, and blockchain pioneer Roger Ver.
XFai is a decentralized oracle service provider that seeks to balance the playing field between centralized and decentralized exchanges. It is built as a DEX Liquidity Oracle, or DLO, which consists of a set of autonomous liquidity management smart contracts for tokens with low trade volumes and market caps. The platform relies on its native $XFIT token and allows holders of small and mid cap tokens to earn returns on their funds when providing liquidity.