The collapse of FTX, previously crypto’s third-largest centralized exchange (CEX), has left the industry badly shaken, with many newcomers departing altogether. Meanwhile, it may take some time before those with little knowledge of the industry beyond the headlines work up the courage to dive in.

However, many have also argued that the current washout of bad actors will eventually benefit the crypto industry. Furthermore, a push away from CEXs may work towards fulfilling crypto’s ethos of decentralization. In fact, decentralized exchanges (DEXs) have actually seen an upsurge in usage since the FTX news broke in early November, with DEX trading rising by 68% to $97.2B last month, according to data from DefiLlama.

While ThunderCore has nothing against CEXs in principle, we are always happy to see the trendline of the industry curving toward greater decentralization. And that’s why we are upping our engagement in a range of decentralized finance (DeFi) projects.

How do crypto exchanges work?

As mentioned in the introduction, there are two main types of cryptocurrency exchanges: CEXs and DEXs. These are where the bulk of cryptocurrency trading occurs.

Centralized exchanges (CEXs)

A centralized exchange is a platform that allows users to buy and sell cryptocurrencies, typically in exchange for fiat currencies like the US dollar or other cryptocurrencies. These exchanges act as an intermediary, facilitating the transaction between the buyer and seller.

In a CEX, the platform typically holds users’ funds in a central wallet, allowing for easy and convenient trading but also making funds vulnerable in the case of exchange insolvency. We first saw this happen in 2014 with Mt. Gox, and now we are seeing it again with FTX.

Decentralized exchanges (DEXs)

A decentralized exchange is a type of cryptocurrency exchange that operates in a decentralized manner, meaning it does not rely on a central authority to facilitate trade. Instead, trades are executed directly between users (peer-to-peer) through the use of smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code.

One of the main benefits of using a DEX is that it allows users to retain control of their funds at all times, as opposed to a centralized exchange where users must deposit their funds into the exchange’s wallet. This means that users are not at risk of losing their funds due to the exchange going bankrupt, though DEXs can still be vulnerable to hacks and exploits.

DeFi on ThunderCore

ThunderCore encourages users to get involved in DeFi, as the opportunities to earn passive income from crypto while deepening one’s understanding of the technology are extremely worthwhile.

TT Mining

ThunderCore’s TT Mining is a popular DeFi platform that allows users to easily earn profits. The platform offers various investment plans with different assets and interest rates, allowing users to receive stable returns. It can be accessed through ThunderCore’s native TT Wallet.

The platform offers a range of fixed savings plans that use a yield aggregator to optimize DeFI staking across the ThunderCore ecosystem for superior APY. It supports ThunderCore’s native asset, TT, as well as stablecoins, and the UI was designed with accessibility in mind.

RAM Protocol

Ram Protocol is a non-custodial liquidity protocol that lets users borrow assets and earn interest on deposited assets. The protocol supports TT, USDC, USDT, and BUSD. For borrowers, you have to deposit the same asset that you seek to borrow as collateral.

If you’d like to earn interest on your assets with RAM, simply connect your TT Wallet, choose an asset, and then supply the amount you wish.

LaserSwap

LaserSwap is a DEX on ThunderCore that uses an automated market maker (AMM) to facilitate trading. Users can exchange, swap, and deposit tokens on the platform, and can earn revenue from liquidity mining.

The app supports the exchange of various crypto assets in the ThunderCore ecosystem, including cross-chain coins and tokens of on-chain NFT projects. This promotes interaction between ThunderCore ecosystem projects, aligning with ThunderCore’s goal of “value sharing.”

DeFi advantages on ThunderCore

There are several key advantages to building DeFi projects on ThunderCore.

EVM-compatibility

ThunderCore is EVM-compatible, which means that developers who are familiar with the Ethereum ecosystem can easily build on ThunderCore using their existing knowledge and tools. This can save time and effort for developers and make it easier for them to create new DeFi projects.

A leader in ecosystem retention

ThunderCore is an expert in ecosystem retention, consistently ranking in the Top 5 on DappRadar for daily active users. Additionally, DeFi projects built on ThunderCore can benefit from an existing user base of over 400K monthly active users, which can provide a strong foundation for project growth.

Accelerated growth with a Web2.5 strategy

ThunderCore’s Web 2.5 strategy can also help to channel even more users into DeFi projects. By partnering with Web2 companies and outfitting them with Web3 features (Web2.5 approach), ThunderCore is in the process of onboarding a vast new group of blockchain users. Riding this network effect can help DeFi projects achieve mass adoption along with the rest of our ecosystem.

$100M Web3 Fund and Developer Growth Program

In partnership with 886 Studios and Outliers Fund, ThunderCore raised a $100M Web3 fund to boost the ThunderCore ecosystem. For Web3 projects looking to take advantage of the fund, it’s advisable to start the application process now.

ThunderCore also runs a Developer Growth Fund, which offers promising Web3 projects looking to deploy on ThunderCore a variety of forms of help. The fund is divided into multiple stages and provides comprehensive assistance with financing, operations, technicals, and promotions.

Parting thoughts

As we move into late December, here at ThunderCore, we would like to express gratitude to our many partners, friends, and token holders who have made our blockchain the thriving decentralized ecosystem that it has come to be. In line with our ideals, we are going to be putting a particular focus on DeFi in the coming months. Please stay tuned for more details on pending collaborations in the DeFi space.