Creators of the Qtum token have locked $20 million worth of the Qtum token to engineer DeFi projects.
However, the project is a partnership between Qtum and blockchain exchange Gate.io. According to the announcement, it will be the first step for the Qtum project, which intends to draw more liquidity towards the Layer2 solutions.
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Users looking to exchange Ethereum-based wrapped QTUM tokens with Qtum mainnet coins will be allowed to do so through the Gate.io platform.
Liquidity pool will reduce transaction cost
The initiative was not launched on the DEX platform due to high fees. Rather, the project allows users to use the Zero-Knowledge Swaps (ZKS) on DEX to reduce transaction fees and increase transfer speeds. That means users who want to buy Qtum will have the benefit of enjoying faster transaction speeds and lower costs as well.
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Stimulating DeFi growth
The liquidity pool is regarded as “ZIPPY ZUCCHINI”. It was rolled out to make use of the Layer2 technology, which prevents bottlenecks within the Ethereum (ETH) technology. The plan is to interact with other blockchains in the future to enable the use of the same Layer2 technology.
Qtum is a cryptocurrency that combines Bitcoin’s security with Ethereum’s smart functionality to create a coin ideal for adoption by large-scale organizations.
It utilizes the UTXO-backed smart contract system with a proof-of-stake model. With several issues linked with the Ethereum system, Fintechs are now looking for a way around it. Qtum has decided to merge the good functionalities of Ethereum with that of Bitcoin to provide a more balanced protocol.
Qtum is currently developing a layer of smart contract specifications. The idea is to have better security, a faster network, and a cheaper transaction compared to what is obtainable on Ethereum.