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Mooniswap’s decentralized exchange protocol developed by DEX aggregator 1inch will be the first Ethereum DeFi protocol to be developed on NEAR, a smart contract platform with fragmentation.

As part of a partnership announced Tuesday, the 1inch team pledged to transfer its automated market maker protocol to NEAR. Sergej Kunz, CEO of 1inch, told Cointelegraph that the Pathfinder aggregation algorithm will eventually also be implemented.

Mooniswap’s NEAR iteration will remain independent of the existing version on Ethereum for now. While users can use the NEAR Rainbow Bridge to bring Ethereum tokens to the new blockchain, the liquidity pools will be separate between the two platforms.

NEAR is a smart contract platform that claims much higher current scalability than Ethereum. Unlike other protocols such as Polkadot (DOT) or Cosmos (Atom), there are no independent blockchains or parachains on NEAR. Instead, the protocol provides a single chain that is divided at the level of individual blocks. The purpose of this construction is to simplify development by abstracting the underlying architecture into a familiar format. The NEAR protocol has a single environment shared by all decentralized applications, similar to the current Ethereum architecture.

Kunz said the existing scaling technology on NEAR will allow the team to “experiment with sharding and be prepared for the arrival of Ethereum 2.0.” The protocol will be implemented on NEAR in 2021.

Mooniswap uses a unique system of delayed virtual prices to avoid front running and help reduce temporary losses by reducing the profit collected by arbitrage traders. Under this system, changes in the effective price of an asset from previous swaps are gradually propagated over a five-minute period.

Mooniswap is one of the first major Ethereum DeFi protocols committed to building on another blockchain. NEAR had previously struck a deal with the Balancer protocol to secure funding for independent developers, although the DeFi app made no commitment to build a new iteration of its protocol.

After scale problems on it the main Ethereum chain became apparentDeFi protocol developers began investigating both Ethereum native layer two solutions and other layer one protocols for solutions.

While some protocols have a head start, the race has yet to officially begin, as are most scaling solutions will be released or completed in 2021.

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