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Telos building DeFi ecosystem on EOSIO

While the Ethereum based DeFi ecosystem continues to surge in both value and investor interest, the Telos blockchain is building new tools on Ethereum competitor EOSIO

The Telos blockchain has integrated with EvolutionDex, an open-source EOSIO protocol that allows anyone to create and launch their own trading pairs on decentralized exchanges. EvolutionDex was built by an EOS team in Argentina. The protocol is free and open-source – developers can integrate it into a front end, so different decentralized exchanges can access the same liquidity.

EOSIO is an open-source blockchain protocol designed for fast transaction speed and flexible utility. The EOSIO platform was developed by the private company block.one and released as open-source software in 2018. The EOS.IO blockchain is the best known EOSIO protocol.

“Continuous liquidity pools maximize the total advantages of a decentralized exchange. There is no need to trust funds to an institution and the prices are computed algorithmically according to the available liquidity,” said Douglas Horn, Telos chief architect. “As liquidity providers join the different Telos pools, EvolutionDex will help play a significant role in Telos price stability and be an important addition to Telos-based DeFi tools.”

The EvolutionDex smart contract for EOSIO to create and operate continuous liquidity pairs between tokens can be viewed here. EvolutionDex can integrate the Telos blockchain with other major EOSIO Blockchains such as EOS. However, while Telos traders will have to pay fees to liquidity providers, there are no transfer fees like those found within Ethereum.

“EvolutionDex can help bring more users as liquidity providers into the Telos DeFi ecosystem. It will also attract traders who arbitrage trading pairs, bringing increased stability and volume to the Telos token itself, while reducing volatility and fees across the board,” said Jesús Chitty, Co-Founder of EOS Argentina.

The EOSIO protocol

Telos and EOS are both distinct blockchains based on the EOSIO protocol, similar to how Bitcoin and Litecoin both use the bitcoin protocol. Telos is not a fork of EOS such as Bitcoin and Bitcoin Cash, nor is it a token on EOS, such as Maker on Ethereum. The Telos mainnet, launched in 2018 with over 100m blocks. It has features not available on EOS such as the Telos Decide governance engine. This is not a central authority, however, it is operated by a number of user-elected validating nodes called block producers. The Telos Foundation has only a non-governance, promotional role. EOS creator Block One does not have any role in Telos, which performed no ICO. Telos based its initial distribution on a version of the EOS genesis snapshot that was capped to eliminate centralized ownership by whale accounts.

The Telos EVM

Last month the Telos blockchain platform launched Telos EVM, the first deployment of an Ethereum Virtual Machine on an EOSIO blockchain. The Telos EVM can execute Ethereum-compatible smart contracts with zero fees.

Telos EVM was deployed on the Telos Testnet. The Telos team says developers can now use Solidity to run smart contracts on a platform that is up to 700 times faster than Ethereum with no network fees or gas costs. After sufficient testing, the team plans to deploy the Telos EVM to the Telos mainnet next month.

Telos claims that any ERC20, ERC721, or other Ethereum smart contract can run on Telos at up to 10,000 transactions per second, an order of magnitude faster than the 14 TPS on the Ethereum blockchain. The Telos EVM is compatible with all Web3-compatible wallets, including Metamask and Brave.

The Telos EVM is designed to leverage the fast transaction speeds of EOS with the security of the Ethereum Virtual Machine, a technology stack embedded in each Ethereum full node. The EVM executes contract bytecode for smart contracts, which are written in languages such as Solidity and then compiled to EVM bytecode. The EVM allows anyone to execute code in a trustless environment. The fact that the EVM is decentralized across the Ethereum Network is why Ethereum is sometimes referred to as “The Unstoppable World Computer.”

“With Telos EVM, people can finally build and deploy decentralized applications the way they were meant to be, with high speeds, no middlemen, and no limit on users,” said Suvi Rinkinen, CEO of the Telos Foundation. “Developers don’t have to use a new codebase to take advantage of Telos EVM. They can use Solidity to easily deploy Telos EVM smart contracts.”

The Telos network’s token TLOS leverages the platform’s governance structure to give developers and community members participation rights. TLOS is used for voting on the future direction of the network and staking or leasing to developers for computation and throughput functions. These governance functions are available to Telos developers to use in DApps via the Telos Decide governance engine.

"Blockchain technology is reaching a new level where it’s more economical and efficient to run legacy DApps on faster chains emulating older structures. Running any Ethereum-based smart contract on Telos EVM simultaneously speeds performance, eliminates transaction costs, and increases the computing capacity and rate of new transactions to half a second,” said Douglas Horn, Telos chief architect. “This also means moving DApps from high energy-using Proof of Work platforms to more ecologically defensible DPoS platform using a tiny fraction of the electricity. Once developers grasp the power of this, they’ll have a hard time justifying remaining on the legacy chains like Ethereum. This is a new macro trend you’ll see more of as high capacity chains like Telos offer emulation for additional legacy blockchains.”


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