Diffusion Finance

Diffusion Finance is a Uniswap V2 fork, one of the first AMMs for Evmos — an EVM that leverages the Cosmos SDK enabling use cases around composability, interoperability and fast finality.While still in test-net phase, the use cases it presents around combining smart-contract applications is extremely exciting.

Benefits of building an Automatic Market Maker on Evmos.

• Interoperability is a key factor, and Diffusion Finance believes that an interchain future is essential for blockchain applications to communicate seamlessly. The ecosystem allows dApps to make use of interchain rather than relying on expensive or complex ways of communicating with other blockchains.
• As an EVM, this allows rapid deployment of well-known DeFi works which will help fuel new DeFi use cases. The ecosystem would hence be in a better position to attract other DeFi projects and unlock new value by interacting seamlessly with other chains.

• In addition, there are balanced economies for all stakeholders. Evmos’ token model article outlines how the protocol’s token distribution wants to help in determining future economic outcomes for the entire ecosystem, mainly developers, users and validators.

• There are also the right incentives provided for developers. Fees on Evmos are calculated based on EIP 1559 and base fees are redistributed to developers and network operators instead of getting burned. To date, Uniswap V2 has burned almost 120,000 Ethereum. Evmos’s approach and incentives will help to derive better products and a fairer network value distribution.