Decentralized finance is a blockchain notion that defines an ongoing attempt to create alternatives or replacement to mainstream financial activities on the blockchain. These alternatives are equipped with blockchain level security and distributed authority. They are designed to work faster and more efficiently than the traditional options. DeFi platforms built on several smart contract blockchain are currently offering a number of mainstream services on the blockchain, this includes; lending and borrowing, exchange and savings. Ethereum blockchain houses the highest number of DeFi projects and is the originator of the concept itself.
In an attempt to offer a solution to ethereum’s scalability issues, layer 2 solutions are emerging as a faster alternative to the plain ethereum blockchain. Layer 2 solutions scale the ethereum blockchain by taking transactions off the ethereum mainnet and execute them while keeping a record of the mainnet and switching easily between these two. Moving away from the congested Layer 1 or ethereum blockchain creates an alternative chain with more efficiency.
Layer 2 solutions offer projects an avenue to build on a super-fast platform and enjoy a great deal of efficiency. Launching on ethereum layer 2 is Mute.io. Mute will be building its DeFi platform on layer2’s ZKsync.
Following the launch of the testnet for ZKsync 2.0, Mute has also launched the test platform for its DeFI suite. The project will be looking to offer certain decentralized financial services at an incredible efficiency. Notable features of the Mute’s switch is a privacy layer that prevents orderbook from being visible to traders, this is an attempt to prevent the ravaging order book frontrunning. Trading bots on DeFi platforms are designed to peep on the orders book and manipulate traders with respect to an expected huge buy and sell.
A defi platform with and integrated privacy layer built on top of a super-fast layer of the ethereum blockchain could present many opportunities for traders and investors alike. Over 10,000 traders have since tested the Mute Switch and final release could be in the pipeline as soon as possible. Mute Switch will also feature every other perk of a decentralized exchange.