Zircon Finance, an automated market maker (AMM) and decentralized exchange on Moonbeam, has announced the launch of its mainnet to address investor concerns about persistent losses in decentralized finance (DeFi). The loss of volatility is related to the loss of assets that were previously allocated to provide liquidity to the liquidity to generate profits through returns to investors. The mainnet, known as Zircon Gamma, aims to combat such losses with unilateral liquidity on the Moonriver network.
For example, in the case of the ETH / USDC pool, Zircon allows us to have full access to Ether (ETH) while providing security with the stable coin USD Coin (USDC). In addition, the main network allows both parties to receive exchange fees. As Zircon explained, floating liquid pools like ETH double the profits compared to regular pools, but risk permanent losses. However, AMM’s internal Async LPing mechanism reduces the risk by at least 90%.
This mechanism does this by incentivizing liquidity to restore lost ETH funds through earned fees. Shevchenko confirmed the obvious break-even conditions if the token price drops to $0, but argued that “Zircon will drop enough to make permanent losses less of a problem. Also, we can use it to create options.” Shevchenko highlighted a number of risk-free mechanisms that will help restore liquidity, unlike existing players that provide protection against permanent losses. However, users have suggested that when choosing their business pairs, they said: “This is an economic system based on motivations, you can expect 99 % of the time to work.” In addition to protecting users from extraordinary losses, a clear stage of Coimbatore directly provides cash flow and cheap replacement costs. “Overall, we will be the cheapest and rarer option to change any of the most popular couples in Uni V3,” Shenko said.