DeDust is a decentralized exchange (DEX) built natively on the TON blockchain. It lets users trade and manage cryptocurrencies without relying on a central authority. Unlike traditional exchanges where a centralized authority manages transactions, DEXs like DeDust let you trade directly from your wallet. This gives you more control over your assets and improves privacy.
Picture a DEX like an independent market. In a traditional supermarket (centralized exchange), the store provides prices for all goods, and acts as the intermediary between producers and buyers. However, at an independent market (DEX), individual vendors (users) bring their products directly to customers, negotiating prices and making transactions without a third party. This direct interaction mirrors how DEXs operate, facilitating trades securely and transparently.
Among today's various DEXs, DeDust has attracted attention for its advanced features, underpinned by the DeDust Protocol 2.0. In this article, we'll dive deep into the DEX, exploring what DeDust is, the benefits it brings users, and how you can get started with the platform.
TL;DR
DeDust is a decentralized exchange (DEX) built on the TON blockchain. It lets you trade without a central authority.
The platform uses the DeDust Protocol 2.0 to provide advanced features like multi-hop trades, stable swaps, and efficient resource management. The protocol also supports fast and low-cost transactions.
The platform offers token swaps, liquidity provision, and staking, rewarding users with its utility token SCALE.
DeDust uses the TON Blockchain for high scalability and throughput, enabling efficient trading.
To get started on DeDust, create a TON-compatible wallet, buy Toncoin, and connect your wallet to the platform for trading and staking.
What is DeDust?
DeDust is a DEX that operates on the TON blockchain and is built around the innovative DeDust Protocol 2.0. The platform offers a user-centric trading experience, with token swaps, liquidity provision, and staking, all while taking advantage of the TON blockchain's advantages.
The TON blockchain, which was previously known as the Telegram Open Network, is operated by the TON Foundation. It’s known for its high throughput and scalability, which are crucial for running an efficient DEX. DeDust uses these features to provide low transaction costs and fast processing speeds.
DeDust Protocol 2.0 introduces several advanced features designed to improve the user experience. The protocol uses TON’s sharding and actor model, which allows the platform to manage resources effectively and handle a large volume of transactions without problems. The DeDust Protocol 2.0 also supports complex operations like multi-hop trades and stable swaps, which are essential for providing liquidity and maintaining market stability on the platform.
DeDust allows you to participate in liquidity pools, where you can earn a share of the trading fees. The platform also introduced its native token, SCALE, which rewards you for contributing liquidity and actively engaging with the platform. The staking program tied to SCALE has seen significant uptake, further supporting the platform’s ecosystem by increasing liquidity and engagement.
DeDust's early entry into the TON ecosystem gives it a competitive edge, especially as it continues to evolve with new features and improvements. However, like all DeFi platforms, you should be aware of the risks and do your own research (DYOR) before participating.
How to get started with DeDust
Let's look now at how to get started with DeDust, from setting up a TON-compatible wallet to purchasing TON coins and connecting your wallet to DeDust.
Set up a TON-compatible wallet
The first thing you’ll need is a TON-compatible wallet. Your wallet stores your Toncoins and interacts with DeFi platforms like DeDust. To set it up, download the compatible wallet, follow the instructions to create a new wallet, and be sure to back up your wallet's recovery phrase securely.
Purchase Toncoin
With your wallet set up, the next step is to acquire Toncoin (TON), the token of the TON blockchain. You can purchase Toncoin on various exchanges, or directly within some wallet apps like Tonkeeper. Once you’ve purchased Toncoin, transfer it to your TON-compatible wallet by using the wallet’s receiving address.
Connect your wallet to DeDust
Now that your wallet is funded with Toncoin, it’s time to connect it to DeDust. Go to DeDust and look for the “Connect Wallet” button and select your wallet provider.
After selecting your wallet, authorize the connection through your wallet app. This will link your wallet to DeDust, allowing you to start trading, provide liquidity, or get involved in staking on the platform.
Explore the platform
After you connect your wallet to DeDust, you can explore the options to swap tokens, provide liquidity, and participate in staking pools. If you’re new to DeFi, maybe start with a simple token swap to understand how transactions work on the TON blockchain.
What is the SCALE token?
SCALE is the utility token for the DeDust platform. It's designed to play a role across the platform’s ecosystem.
Staking and rewards
By staking SCALE, you can earn rewards often paid out in additional SCALE tokens. Staking not only rewards you for holding SCALE but also helps to stabilize the platform by providing liquidity and reducing token circulation, which can help support the token's value.
Tokenomics
SCALE follows a structured supply mechanism, with 21,000,000 tokens initially allocated. SCALE is key to the platform’s operations and is used to reward those who contribute to the platform's growth. The tokenomics are structured to encourage long-term holding and active participation, which helps to maintain a healthy and engaged user base.
SCALE is allocated in the following way:
Burned: 20.54%
On the market: 26.02%
Marketing: 2.61%
Development: 5.83%
Core team: 20.00%
Ecosystem fund: 25.00%
By holding and using SCALE, you can maximize your rewards on DeDust, from governance rights to financial incentives, making it a key part of the platform.
How to swap tokens on DeDust
Swapping tokens on DeDust is relatively simple, but understanding the underlying mechanics can help you execute transactions more confidently.
Here’s a step-by-step guide on how to perform a token swap on DeDust, focusing on key aspects like transaction settings, swap fees, and the role of liquidity pools.
Connect your wallet
Before you can swap tokens, you need to connect your TON-compatible wallet to DeDust. Once your wallet is connected, DeDust will automatically detect your available tokens, making them ready for swapping.
Choose tokens to swap
Go to the "Swap" section of DeDust. Here, you can select the token you wish to swap and the token you want to receive. The platform will display the current exchange rate based on available liquidity in the corresponding liquidity pools.
These pools are essential, as they make sure there’s enough liquidity for your swap, which directly impacts the ease and cost of your transaction.
Adjust transaction settings
Before finalizing your swap, it's important to adjust the transaction settings to account for slippage. Slippage refers to the difference between the expected price of a token and the price at which the transaction is executed.
A lower slippage tolerance means your transaction will only execute if the price stays within a certain range, protecting you from unexpected price swings. However, this might also mean your transaction could fail if the market is too volatile.
Review swap and gas optimization
DeDust, like other DEXs, charges a small swap fee, which is often a percentage of the transaction value. Since DeDust operates on the TON blockchain, gas optimization is a key factor. The platform is designed to be gas-efficient, meaning it minimizes the computational resources required to process transactions, reducing your overall costs.
Execute the swap
Once you’ve confirmed the settings are correct, select the “Swap” button to execute the transaction. Your wallet will prompt you to confirm the transaction, displaying the estimated gas fees and final swap details. After confirmation, the swap is processed, and the new tokens should appear in your wallet within seconds. DeDust.
How to provide liquidity and earn on DeDust
Providing liquidity on DeDust is another way to earn rewards while supporting the platform. By contributing liquidity, you enable smoother and more efficient token swaps, and in return, you earn a portion of the transaction fees and other incentives. Here’s how you can get started with liquidity provision on DeDust.
Connect your wallet and select a pool
First, connect your TON-compatible wallet, once connected, go to the pool section of the platform. Here, you’ll find various liquidity pools, each consisting of a pair of tokens. Select a pool based on the tokens you hold and are willing to deposit. Your potential earnings will depend on the trading volume and fees generated within that pool.
Add liquidity
To provide liquidity, you must deposit an equal value of both tokens in the selected pool. For example, if you choose a TON-USDC pool, you’ll need to provide equivalent amounts of TON and USDC.
In return, the platform will issue you LP tokens (liquidity provider tokens). These LP tokens represent your share of the pool and are used to calculate your rewards.
Earn rewards
As a liquidity provider, you earn a share of the trading fees generated by the pool proportional to your contribution. The fees are distributed in real-time, and your earnings grow as long as your liquidity remains in the pool.
DeDust may offer bonus rewards in SCALE tokens, which can further boost your earnings. The value of your LP tokens will also increase as the pool grows, providing another avenue for earnings.
Remove liquidity and consider risks
You can remove your liquidity at any time by redeeming your LP tokens for the underlying assets. However, be aware of the potential risks, such as impermanent loss, which occurs when the value of the tokens in the pool fluctuates significantly. To mitigate risks, consider providing liquidity in stablecoin pools or pools with lower volatility.
Following these steps, you can provide liquidity on DeDust and explore the earning opportunities available in the DeFi space. However, always evaluate the associated risks and consider diversifying your trades to protect your assets.
The final word
DeDust is a popular option among today's DEX space, being a platform that offers numerous advanced features and inherits the benefits of its underlying TON blockchain. Users can not only trade assets with relatively low fees but also provide liquidity to start earning rewards. These rewards are enabled by the SCALE token, which also encourages participation in the DeDust community to strengthen the network. Ultimately, DeDust provides another option for taking control of your digital assets without the involvement of a centralized authority.
Interested to learn more about DEXs? If so, check out our guide to the top DEX aggregators in 2024.
FAQs
DeDust is a decentralized exchange (DEX) built on the TON blockchain. It lets you trade cryptocurrencies directly from your wallets without a central authority. The platform offers features like token swaps, liquidity provisioning, and staking, all powered by the DeDust Protocol 2.0.
To start using DeDust, you'll first need to set up a TON-compatible wallet. Next, you'll need to buy Toncoin or transfer it over from a different wallet. Then, connect your wallet to the platform to start trading, providing liquidity, or participating in staking pools.
SCALE is the DeDust platform’s utility token. It’s used for staking and earning rewards. SCALE's tokenomics encourage long-term participation in the network and liquidity provisioning, which both help to bring strength to the community.
It's impossible to remove all risk when trading on a DEX such as DeDust, and these risks include slippage caused by price volatility, smart contract vulnerabilities, and phishing attacks. It's important to be aware of the risks involved before getting started, and never trade with more than you can afford to lose.
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