We’ve already seen how MEV mitigation is one of Common’s key features, but that’s not the only unique part of its approach to private DeFi. Common is a multi-chain DEX that is able to attract liquidity from across web3.
Let’s dive into Common’s multi-chain capabilities and understand how this helps set a new standard for both DEX liquidity and privacy.
Liquidity aggregation
The first thing to know about Common’s multi-chain approach to DeFi is that it can tap into on-chain liquidity that’s kept in other major ecosystems in web3, including off-chain sources.
As we’ve seen, Common works with an order-matching system that settles trades internally within the protocol. What’s even more interesting is that this system can also leverage external liquidity sources in search of optimal prices. Arbitrageurs are welcome to trade against Common and its Dutch Auction mechanism.
Shielded pools
Common’s multi-chain liquidity and privacy considerations don’t stop here. All of the cross-chain liquidity that’s aggregated to Common can be kept in a shielded pool. These pools are enabled by the ZK technology and allow users to remain unprofiled by on-chain watchers. This makes it a great venue not only to bring liquidity from external sources, but also let it stay within Common.
Bridges
Common benefits from the bridging infrastructure of Aleph Zero. Router Protocol is already working on connecting Aleph Zero to a set of other supported networks, such as Ethereum, Polygon, Arbitrum, or Binance Smart Chain. Router Protocol will work alongside two other bridges built specifically for Aleph Zero.
All this to ensure that assets and stablecoins can be moved freely between Common and other networks by market participants.
Let’s find things in Common
Interested in trying Common for yourself? Join the Common testnet and see how it’s being built in public–starting with the first implementation of AMM and Liquidity Pool functionalities. Leave your feedback, engage, and…
Let’s create a private DeFi together. Let’s make financial privacy Common.
