Published Oct 20, 2021
By Qredo Team
Building on Qredo: 3 Revolutionary dApp Ideas
Qredo has built the cornerstone for the crosschain future. Our unique implementation of multi-party computation (MPC) secures assets across a decentralized network, enabling instant low-fee transactions across multiple blockchains* without the need for a third party.
This post gives you a brief glimpse into the vast trading and DeFi ecosystem that this critical building block will enable. We peek over the horizon to examine three projects that could potentially be built on Qredo — and the toolkit you will need to get started.
1. Institutional-grade crosschain DEX
As Uniswap overtook Coinbase, decentralized exchanges have been sucking trading volume away from their centralized counterparts. Yet most exchange protocols are still confined to a single blockchain. Traders wanting to trade across different chains are thus forced to take on counterparty risk by wrapping assets.
Qredo's atomic swaps provide a scalable way of instantly swapping crypto assets across chains without intermediaries or wraps. This mechanism could underpin crosschain liquidity for any number of high-performance applications.
For example, you could build an order book system and matching engine fronted by an institutional-grade trading interface with advanced order types. Under the hood, trades would not be settled through a complex array of brokers, clearing houses and go-betweens, but instantly peer-to-peer on Qredo Network.
2. Crypto-backed derivatives
Derivatives are a critical piece of the global financial system, providing a layer of complexity that the crypto market has yet to successfully replicate.
When cryptoassets are deposited on Qredo, synthetic assets are issued on the Layer 2 network to reflect the collateral secured by MPC on the underlying chain. We call this process crystallization. Over 95% blockchains will be supported, allowing almost any form of cryptoasset to eventually be exchanged on the Network.
With the addition of pricing data and risk management mechanisms this crystallization mechanism could enable the creation of derivative tokens that are not tied to one exchange, or subject to counterparty risk. Assuming data availability, they could be based on anything under the sun —from the price of wheat to the amount of annual rainfall in London.
3. Decentralized prime brokerage
Prime brokers provide traditional funds with a more efficient way to manage capital. In DeFi however, this infrastructure has yet to be created.
Qredo's Version 2 will provide borrowing and lending functionality. But unlike existing DeFi lending protocols, Qredo’s inbuilt governance will enable organizations to retain granular control over assets, and use sweep transactions to bypass custodial policies and reclaim funds.
Add in a liquidation and risk management engine, and you could tune Qredo's loan pools to handle complex transactions and conditions. This would enable prime broker services — lending, liquidity and leverage — that could allow capital efficient trading on Qredo Network and beyond.
💡 Have another dApp idea?
If you're inspired to build on Qredo, we provide a full developer toolkit including well-documented APIs to create and sign transactions, and integration libraries (Python, Node.js, Java) to enable rapid integration and standalone application development.
*BTC, ETH, and ERC-20 supported at present, with more in the pipeline.