Spectrum Finance#
Spectrum is a pioneering open-source, cross-chain decentralized exchange (DEX) platform, currently offering liquidity provision (LP), yield farming, and babel fees on the Cardano (ADA) and Ergo (ERG) networks.
Current Features of Spectrum Finance#
- Liquidity Provision & Yield Farming: Users can engage in liquidity provision and yield farming.
- Babel Fees: Babel fees allow transaction fees to be paid with various tokens.
Spectrum Bloom: Next-Generation DeFi Framework#
Spectrum Bloom is an upcoming eUTxO-native framework for decentralized finance (DeFi), designed to address and improve upon the limitations of early decentralized exchanges (DEXes).
Highlights from the Spectrum Bloom White Paper#
- Addressing Early DEX Limitations: Spectrum Bloom aims to overcome issues such as lack of transparency, composability, and poor performance in early DEX implementations.
- Decentralization and Openness: The framework focuses on principles of decentralization, openness, transparency, and sustainability.
- eUTxO Model: Utilizes the eUTxO blockchain model, as seen in Ergo and Cardano, supporting multi-stage contracts and multi-token functionality.
- Innovative DEX Protocol: Includes a novel protocol for DEX that consists of both on-chain (UTxO and validators) and off-chain (event handlers for state transitions) elements.
- Liquidity Pooling and Execution: Spectrum Bloom proposes unique approaches to liquidity pooling and order execution, aiming to streamline processes and reduce overhead.
- Universal Order Composition: Introduces universally composable orders, which can be fulfilled from any liquidity source, enhancing flexibility and efficiency.
- Autonomous Account (AA): A key feature where an on-chain entity can validate execution and release user funds for trading, facilitating a dynamic set of applications on eUTxO blockchains.
- Future Extensions and Applications: The white paper also discusses potential extensions and applications of the Autonomous Account concept beyond DEXes.
Resources#
Tutorials#
Papers#
- Extended UTxO in production: Techniques, trade-offs, and finding a better balance
- Spectrum Bloom White Paper