Sky Mavis Launches Katana, a Native Dex for Its Ronin Sidechain
Sky Mavis, the company behind the development of Axie Infinity, has launched Katana, the first decentralized exchange for Ronin, its custom-made Ethereum sidechain. Katana will feature all of the tokens used in Sky Mavis’ products, including SLP and AXS, the native tokens of the Axie Infinity ecosystem. This new product will allow users to earn rewards for providing liquidity.
Axie Infinity’s Katana DEX Launched
Sky Mavis, the developer of Axie Infinity, a breakthrough play-to-earn-based blockchain game, has launched Katana, a new decentralized exchange on top of Ronin. Ronin is Sky Mavis’ own tailored Ethereum sidechain, developed to satisfy the needs of users that complained about the high fees they had to pay for transacting on Ethereum’s Layer 1 (L1). With Katana, Sky Mavis makes it easier to manage Axie Infinity and introduces an alternative way of earning yield for users.
As with most decentralized exchanges, Katana will feature liquidity pools to serve other users in facilitating the exchange of their tokens on top of the same Ronin sidechain. One of the most interesting proposals of the exchange is the introduction of USDC as a supported token, making it easier for players of Axie to park their earnings in stablecoins to avoid volatility.
Sky Mavis Introduces Ron Token, Prices React
Katana also brings changes to the economics of Ronin. Until now, Ronin transactions were free, and each user had a quota of 100 free transactions per day. Going forward, however, the native token of the Ronin sidechain, ron, will be needed as gas to pay for transactions. Ron will also be offered as a reward for staking liquidity in Katana, this being the main incentive behind it. Sky Mavis stated they would be offering more information on ron specifics soon.
The first liquidity pools to be available in Katana will be AXS/ETH and SLP/ETH, which will distribute half of the rewards offered each.
The launch of the Katana decentralized exchange boosted the price of AXS and SLP, the two tokens of the Axie ecosystem. AXS hovered around the $140 mark on November 3, while on November 4 (EDT) the token reached a price peak of almost $160. SLP, the “wage” token of players in the Axie platform, shot up vigorously, going from $0.06 to a peak of $0.11, almost doubling its value in just a day.
What do you think about the launch of Katana, Sky Mavis’ first decentralized exchange? Tell us in the comments section below.
News, asx axie infinity, axs, Cryptocurrency, DEX, katana, Liquidity Pools, ronin, Sky MavisRead More
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, Khareem Sudlow