Even though DeFi has been around for a few years, it still doesn't offer the most user-friendly experience. Just try onboarding your parents to a DEX, and you'll see. I once had a lengthy conversation about Ethereum and its high gas fees with my Mum. End of the story, she never touched DeFi — she did invest some of my money in ETH, though for a brief moment.
Once you get used to having to log in, connect to Metamask, and approve and sign transactions, you might not think much of it anymore, but getting broader adoption will be near-impossible with that much friction.
Jumbo exchange is on a mission to provide the most intuitive DeFi experience. So that anyone can start using it — even without prior DeFi exposure.
Like all decentralized exchanges, Jumbo is powered by an AMM — an automated market maker. On DEXs, unlike on CEXs, liquidity is provided in pools, and algorithms take on all the swapping and matching orders. Unlike on p2p exchanges, you don't have to wait until someone wants to buy what you sell; you trade against the pool.
Uniswap most prominently leveraged the AMM setup to climb to the Top spot in DEX trading volume, some days even rivaling the volumes on centralized exchanges. However, as you might know, Uniswap is running on Ethereum. And that can come with its challenges.
And no, the merge does not lower gas fees. This only happens once sharding is implemented. In case you want to read up on that, this is a good article on that topic. Just like EIP-1559 didn't lower fees. It just made them more predictable.
Fees
High fees are a problem because it doesn't seem very sustainable to ask people to pay outrageous fees to use a service. Yet there is another problem with it in the context of a DEX. Liquidity pools are pooled assets of people providing them to the smart contract in expectation of monetary rewards. However, prices can differ from what assets are trading outside the DEX. That's where arbitrageurs come in to maintain the price equilibrium.
They simply buy something in one place for cheap and sell it elsewhere for more. The more they buy, the higher the demand, driving the price back up.
The problem is when high gas fees exist in a system, they might make these trades unprofitable.
Jumbo exchange chose NEAR as the blockchain for its DEX for precisely that reason. NEAR is, from the ground up, built to facilitate a great user experience and make blockchain as accessible as possible.
On Jumbo users benefit from instantaneous swaps, high yields, and a seamless pool transition.
Permissionless Pools
Anyone can create a liquidity pool on Jumbo. There is no involvement of third parties. All it takes is initial liquidity to seed the pool. That means NEAR-based projects can start running their own pools to provide their communities with access to trading their token.
To create pools, Jumbo provides an easy-to-use interface where one can configure important parameters.
Smart Pools
Smart Pools is the architecture the team devised to provide the most convenient way for users to provide and access liquidity. Each pool is a separate instance users can provide liquidity to. With the Jets, an interface that notifies users of the best avenues for liquidity provision, anyone can maximize their gains from using Jumbo.
The system also ensures that liquidity isn't fragmented but distributed homogeneously across all the pools.
AML
AML is short and stands for Anti-Money-Laundering. It describes procedures of checking transactions and money flows and ensuring they are not money laundering. While imposed through regulation on TradFi companies, things obviously work differently with DeFi. The Jumbo team believes that DeFi will need to be compliant and regulate itself if we want it to grow beyond the crypto enthusiasts. That's why they are using HAPI protocol. Instead of having one centralized entity checking all user's accounts, Hapi is a decentralized AML solution that relies on KYT = Know your transaction.
Before a transaction is submitted to Jumbo, it's first routed through the HAPI smart contracts to check for any maliciousness. If none is detected, the transaction goes through.
Jumbo also has a native token, called $JUMBO, trading at $0.89.
Overall, I agree with the notion that DeFi needs a more seamless user experience. It's quite interesting that Jumbo has chosen to "self-regulate" through the integration of HAPI — probably a step in the right direction and something that'll put people's minds at ease.
Most recently, the team also released Futures on JUMBO — continuing on its path to offer more and more instruments in a user-friendly way. Check jumbo out here.
