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- Calyx token (CLX) is the native token of the DeFi ecosystem called Calyx for real time cryptocurrency trading. The Calyx DeFi ecosystem sources multiple liquidity protocols (see definition below) or DEXs, to provide seamless one-step swaps for cryptocurrency tokens.
- The Calyx token is currently (at the time of writing this article) is at its presale phase. It will completely evolve as a permissionless-community-driven DeFi ecosystem in which members who stake Calyx token (CLX) will have a say in the governing of the ecosystem.
- Staking of CLX will further increase the liquidity which will hence reduce volatility of the coin.
- It is a community driven (DAO) and permissionless protocol which sources multiple blockchains and liquidity protocols to facilitate multi-chain crypto trading and foster crypto swaps real time at the best prices.
- Please understand, one of the biggest differentiator is the atomic or real time or quick cryptocurrency swaps at the best rates being made possible by the Calyx DeFi ecosystem. As mentioned, this is facilitated by sourcing in multiple liquidity protocols.
A liquidity protocol which enables real time and easy cryptocurrency trades and swaps. The liquidity is sourced from multiple Liquidity Protocols to provide the best rates for a cryptocurrency trade.
As you might be knowing, liquidity in a market (be it cryptocurrency or fiat money market) is defined as the ease with which an asset can be exchanged for another asset. For instance, exchanging Bitcoin for USDT, or Ether for ADA, or for example in the traditional financial market-a stock into cash, etc.
A liquidity protocol is a mechanism which facilitates fast and smooth liquidity in a market. In the cryptocurrency space, liquidity protocol can be visualized as a box which locks multiple cryptocurrencies being staked by users (for rewards) and which is governed by a Smart Contract.
A liquidity protocol facilitates an Automated Market Maker (AMM) which replaces the traditional Market Makers (MM). An MM is used to fulfill orders in a cryptocurrency exchange. When a person A places a buy order for X cryptocurrencies, then the MM matches it with an available (if at all) sell order for X cryptocurrencies. This is the method of order booking which has been used by the cryptocurrency exchanges and even the stock exchanges. The MM charges a fee and the process may take time.
Liquidity and Liquidity Protocols
Consequently, the concept of liquidity protocols and Decentralized Exchanges (DEX) evolved. The MM is replaced by AMM where instead of a third party facilitating the order booking, a Smart Contract automatically matches the order. Add to it a liquidity pool which holds cryptocurrencies been staked by users (for rewards). The liquidity pool enables availability of cryptocurrencies in plenty to match almost any order, whatsoever. Some of the popular DEX which offer AMM and liquidity protocols are Uniswap, Bancor.
Roadmap of the Calyx token
The Calyx token right now is at its presale phase. In Quarter 2 of 2022 the development of the DEX aggregator will take place. This will make the Calyx DeFi ecosystem to source in multiple DEXs or Liquidity Providers to attain real time token swaps at the best rates.
In Quarter 3 of 2022, the Calyx token will enable cross chain atomic trades. This means one will be able to swap a token of one blockchain platform with the token of another blockchain platform. This swap will be governed by a Smart Contract and will hence be an Atomic or automatic swap. For instance a user will be able to swap an ERC 20 token of the Ethereum blockchain with a BSC token of the Binance Smart Chain.
Quarter 4 of 2022 will present the dashboard for Traders to go live and trade.
Quarter 1 of 2023 will launch the DAO CalyxDAO which will allow users to participate in the governance of the DeFi ecosystem.
Which blockchain platforms does Calyx token support?
Until now, at the time of writing this article (April 2022), the Calyx token supports the Ethereum blockchain platform. But in the future (Q3 of 2022), the Calyx token will (as planned) support other blockchain networks like Polygon, Binance Smart Chain, Avalanche, Fantom, etc.
Is Calyx token a community driven project?
At present the Calyx is governed by the management and the founding team members. Although in the future the team intends to make Calyx a community driven DAO called CalyxDAO.
What is the maximum number of Calyx token to be supplied ever?
Which actors comprise the Calyx DeFi ecosystem?
Primarily the Calyx ecosystem will have two types of actors-Traders and Liquidity Providers. Traders can buy, sell, swap tokens while the liquidity providers (individuals and DEX) will stake tokens in the common Liquidity Pool to increase liquidity and reduce volatility and consequently earn rewards.
The Calyx token is one of the most promising altcoins in 2022. It offers atomic swaps, permissionless, community-driven DeFi ecosystem. Currently at its presale phase it has the potential to reap in huge profits if invested in early. Please note this is not an investment advice rather an data driven article. Please do proper research before investing.
If you are a serious investor in cryptocurrency space and and want to HODL (Hold) them for long, use a hardware wallet like Ledger or Trezor. These wallets store your cryptocurrencies (keys to cryptocurrencies) in an offline environment which is therefore cannot be the victim of an online hack or malware practice.Word of Advice