What Is AnimalGo (GOM2)?

What Is AnimalGo (GOM2)? Complete Guide Review About AnimalGo.

What Is AnimalGo (GOM2)?

Experience AnimalGo Market’s pet goods shopping mall / Park’s pet cafe, hotel, beauty and kindergarten / AnimalGo Beauty’s visiting beauty salon / GoMini’s rewarding game, all with Animal. Animal is a rewarded pet community application made by the Animal team of MOON LAB PTE.LTD. Thorugh the mobile app, they will become the NO.1 pet community in which all daily lives of companions and animals are returned to their value. The recent boom in decentralized finance has led to the rapid adoption of Lending and Borrowing platforms such as Compound and Aave, and Decentralized Exchanges such as Uniswap.

Despite their proven economic value, each of these individually have limitations. Uniswap like all Automatic Market Makers, has issues guaranteeing price execution for large order sizes, and due to the exclusive reliance on smart contracts, is slow and costly to use. In order to serve a broad range of use cases, lending platforms like Compound must allow borrowers to take funds off-platform, requiring a greater ratio of collateral than assets borrowed. This is problematic for most borrowers, and greatly limits the usability of the platform.

AnimalGo Storage Key Points

Coin BasicInformation
Coin NameAnimalGo
Short NameGOM2
Circulating Supply966,864,393.00 GOM2
Total Supply966,864,393
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

Issues with Decentralized Exchanges

Without a doubt, the fastest growing segment in the DeFi space is the decentralized exchange (DEX). Recently, Uniswap traded USD 439.7 million in a 24-hour time period, yielding USD 1.11 million in fees to liquidity providers. At its peak in early September, it handled USD 953.6 million in a single day. Currently over USD 2.39 billion in liquidity is locked on the exchange. While these numbers exemplify Uniswap and the broader popularity in DEXs in general, they are not without issues.

High Transaction Costs

AnimalGo can claim to be decentralized because they use smart contracts to handle every aspect of a transaction on an exchange. On an order-book based exchange like Ether Delta, updating order book prices require invoking a smart contract and paying a fee. This means frequent updates to limit orders, stop loss orders and other similar order book entries as may be required in a fast-moving market result in a very high expense, even without any actual order execution taking place2.

Some DEXs attempt to eliminate this cost by utilizing a complex layer 2 solution to handle order book updates, or simply centralizing order book management altogether, however these solutions are simply compromises without addressing the main issue.

Low Performance

AnimalGo also suffer from high latency3 due to the requirement to process orders through a smart contract. Before a transaction can be completed, it must first be recorded onto the blockchain and confirmed. This takes seconds at best, but can take as long as several hours during time of high network congestion. In some cases, an order that appears in an order book may already be processing in the current block by the time a trader attempts to execute against it. This will invariably result in a failed transaction while still requiring the trader to pay the smart contract fees. For traders employing high frequency trading algorithms this is obviously unacceptable.

Issues with Price Execution

AnimalGo More recently, the concept of Automatic Market Making (AMM) became popular to approach transparency without requiring the use of order books. Uniswap is one well-known example of a DEX that implements AMM. AMM’s work by utilizing something called liquidity pools to provide a market-based ratio of two different cryptocurrencies. A trader can interact with these pools by swapping one cryptocurrency for another, resulting in the same effect as a trade on an order-book based exchange.

However, due to the unique characteristics of liquidity pools they are subject to a significantly greater degree of slippage than order-book based exchanges. Slippage is defined4 as the difference between the expected price of a trade and the price at which the trade is executed and occurs when the trade itself causes the market price to deviate significantly.