I am here to write about another defi solution for interoperability and cross chain swaps of crypto pairs. The name of this project is Maya. Just like a few other projects, Maya is attempting to build a bridge across major blockchains, enabling a seamless decentralized exchange of crypto pairs across blockchains like Bitcoin, Ethereum, USDT and others. Maya have a lot of interesting features that I will look at later in this article. But before then, it would be great to take a look at the problems Maya is trying to solve.
The problem of crypto swapping networks
There are lots of challenges with how current decentralized swapping protocols work and Maya is addressing these issues in a unique way. Consider the following three challenges:
- Siloed blockchains: The inability of different blockchains to communicate and integrate with each other is a huge problem for current decentralized exchanges. This results in the major interoperability issue that blockchains are known to have. Many decentralized exchanges only allow crypto swaps on a few blockchains, making it easy for users to swap crypto across chains. As a result, there are several inefficiencies that come up with each blockchain operating as a closed system, with unique tools and capabilities.
Lack of communication capabilities across blockchains have resulted in many fragmented blockchain projects each facing unique challenges. A way to make all blockchains communicate will enable projects to utilize features in other blockchains not found in one. It will also facilitate crypto swaps across chains.
- Small liquidity pool: There are thousands of cryptocurrencies in existence, but not enough liquidity to executes trades for trading pairs. This is one of the major challenges of having so many siloed blockchains. Each Dex tries to have a sizeable pool of assets to swap. Most times, they do not have all the pairs users would like to swap. This is not possible as there are so many cryptos.
Each siloed blockchain then has a small liquidity pool for swapping of pairs. The challenge is that as users do not see enough liquidity to complete their swapping orders, they are not likely going to participate much in trading on that platform. Small liquidity causes many orders to remain pending and it leads to price hike of the limited liquidity available in the system.
- Growing number of users/cryptos: The number of cryptocurrencies continue to increase by the day. It is same with the number of crypto users and traders. These figures continue to rise each day as more people embrace blockchain technology. As a result, available decentralized exchange platforms are not able to fulfill all swapping orders as more customers place trades on varied crypto pairs.
The increasing number of users also means more swapping pairs are requested but they are not available. This becomes a big challenge to the growth of blockchain and its increasing adoption.
The above are some challenges that current decentralized exchanges face. Maya has come up with unique solutions to these challenges. Consider what this project is all about.
Maya transforms DEX landscape
Maya is a decentralized protocol committed to providing a secure environment for crypto swapping across multiple blockchains. The full focus of this project is to eliminate the siloed nature of most blockchains and enhance straightforward swapping of native cryptocurrencies on multiple blockchains.
Maya is achieves cross-chain swapping capabilities by combining the best of Mayachain and Aztechchain. Mayachain manage swap orders on chain in vaults instead of wrapping assets around other tokens on a different blockchain to create the same value and utility. This is also the way thorchain works from where Mayachain was forked. As a result of this design, token swapping across multiple blockchains are achieved with out the underlying risks involved in token wrapping method.
The Aztechchain which is still at the development phase will provide a platform to run the smart contracts that will be used to execute trades, utilizing the cross-chain liquity of Mayachain. This unique combination will ensure a secure, token swapping utilizing liquidity across different blockchains.
Maya - why so unique?
- Fair launch: This is a completely unique roll out model not previously seen. With other token launches, the team, and early bird investors have the opportunity to buy the tokens at a cheaper price before the main launch. But Maya deviated from this model and instead introduced the fair launch. That means the token initial distribution will be at a uniform price for everyone. As such, there are now early bird price incentives. There are equally no special prices for teams or any other person. The initial distribution is fair because everyone buys the CACAO token at the same price.
Maya fair launch has taken place and the project raised in excess of $11m. The amount raised is spread between BTC, USDT, USDC, RUNE and ETH. The network thus kicked off with a massive Total Value Locked in excess of $22M. This shows that the idea of fair launch really produced the desired results.
- Direct swap of native crypto across chains: This is a massive possibility with the Maya protocol platform features. Traditional dex platforms would use token wraps to achieve this, but the security risks associated with this method is well documented with more than 22b lost as bridges were hacked in 2022.
Maya allows for example, a user to swap BTC directly to ETH without converting to wrapped BTC first. This seamless direct swapping of assets on different native blockchains is an innovative way to connect two blockchains together and allow them to interact. Maya is thus helping solve the interoperability issue of blockchains that has really created much limited siloed blockchain solutions. In addition to that, Maya will use this model enable instant access to liquidity across traditional decentralized exchanges.
- Streamlined Hard-forks: When traditional dex platforms implement upgrades, it usually affects the entire platform until the new features including consensus are completely set up. But The Maya protocol will operate in a hybrid fashion. When future upgrades are made, it will not affect the operation of the existing network. The consensus will be uniform As such, validators will not be in so much hurry to step up because whether they remain in the old network or have migrated to the new one, the consensus does not change.
With this, users are guaranteed uninterrupted access to the protocol no matter whether there are new upgrades.
- Collateralized zero interest loans: The Maya network will feature loans as part of its products. Users would be free to borrow from the protocol, but they will need to provide collateral using the native token $CACAO. They will be free to borrow the other assets listed by Maya including BTC, ETH and the rest. But the collateral will be provided in the native $CACAO token.
Maya loans are so unique unlike what we have seen with other Dex platforms. The loans have no interest. The loans are also not time-bound, meaning that they do not expire. Interestingly too, the platform does not liquidate loans. These are really impressive features.
- Continuous Liquidity pools (CLP): This is one of the top features of Maya which makes it very outstanding. CLP ensures that all the listed pairs on the platform will always have liquidity. There are no limits, and this ensures that all swap contracts activated by users will instantly be filled. All trades will be closed.
In addition, CLP provides the best token swap prices. Maya checks all the Dex platforms and feeds users with the most competitive prices for trading. Additionally, Maya CLP will ensure that the system automatically adjusts its liquidity pools based on trades, ensuring a fair and continuous availability of pools for all the listed assets.
- Collaboration with thorchain and security: The Maya protocol is a fork of the Thorchain. It inherits all the features of this decentralized protocol that has the trust of the industry. One of the security features of Maya prevents very large amount of liquidity from exiting the platform at the same time. This is achieved through a process called Outbound Transaction Throttling. This process will not allow outbound transactions in excess of 1000 CACAO to complete. When transactions exceed that amount, the excess is added to the next block for processing. This feature ensures that liquidity leaving and entering the protocol is evenly balanced.
Conclusion
The Maya protocol is a big valuable addition to the Thorchain and entire Dex landscape. Its attempt to solve interoperability is unique and its focus on collaboration with existing solutions is amazing. Among its many products including lending, saving and liquidity, its main goal of enabling cross-chain swapping of native assets without bridges and token wraps is a welcomed solution.
Maya will help the expanding number of crypto users and token swap pairs, ensuring that not just Thorchain is left to bear the load. True decentralization has an element of not allowing a single control of markets and entities. Instead of being a competitor, Maya is complementing and collaborating with thorchain to bring the best solutions in cross-chain token swaps.