Brave is a private web browser that rewards its more than 25 million users with its Basic Attention Token (BAT) and it is creating a decentralized exchange aggregator on its platform.
Brave Wallet to replace Crypto Wallet
Brave is creating a DEX (Decentralized Exchange) aggregator and a new “Brave Wallet” to replace the current Crypto Wallet, according to the BAT Roadmap 2.0 announced today.
The added content will expand the company’s business scope from surfing the Internet to decentralized finance (DeFi). This multi-billion dollar cryptographic protocol-based industry enables people to earn interest without going to financial institutions to add assets lend and trade tokens.
A decentralized exchange is an online market where people can trade different cryptocurrencies and these tokens do not come into contact with third parties. DEX is different from centralized exchanges (like Coinbase), which store users’ cryptocurrency keys on behalf of users.
While DEX aggregators can help users find and secure the best prices on multiple exchanges, the roadmap also allows Brave to create their DEX.
“One of our goals is to make tokens and crypto easy to use for all of our users,” Brave CEO and co-founder Brendan Eich told Decrypt. “The custom DEX which we plan to explore could help achieve this goal by enabling users to exchange BAT and other assets at lower fees, and with better user interface and security, by being built into Brave.”
Brave has displayed widgets from the Binance, Gemini and Crypto.com exchanges on its homepage so users can easily connect to their wallet accounts without logging into the site. However, decentralized exchanges have opened up new trading opportunities.
BAT to be used on the Browser
One of the most popular decentralized exchanges is Uniswap, which pioneered the use of the “Constant Product Market Maker Model”. With this model, users can sell tokens even if there is no one on the other end of that transaction. For example, if you have peanut tokens and you want Polygon, you don’t need to find anyone from Polygon to buy peanut. Instead, you can enter the peanut tokens into the pool along with some Ethereum and then extract the corresponding value in the polygon.
Uniswap introduced governance tokens after the exchange launched while Brave did the opposite, creating an exchange that could use their tokens and whose current market value exceeds $700 million. Currently, users can use the income they generate from viewing ads to advise content providers. Connected DEXs represent new use cases.
There are few details about Brave’s DEX aggregator, but the software company said it gives discounts to BVT holders who use native tokens to pay transaction fees or to those who only have BVT in their wallets. Users offer discounts to make a difference—everything in the browser.
Eich said, “Ease of use is in our experience the key to adoption and reducing friction brings in new layers of users as we work to normalize crypto for everyone.”
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