On-Chain Liquidity & DeFi on Relix
Relix is built as a liquidity-first Layer 1, where DeFi protocols live directly on-chain and interoperate through standard, composable smart contracts. Automated market makers (AMMs), lending markets, and liquidity layers all settle natively on Relix, giving developers a robust foundation to build trading, yield, and financial applications.
This page provides a conceptual overview of how liquidity and DeFi primitives are structured on Relix.
AMMs: The Core Liquidity Primitive
Automated market makers (AMMs) form the backbone of on-chain liquidity on Relix.
By deploying AMM pools directly on Relix, protocols can:
Enable permissionless trading between any two Relix-native assets
Use liquidity pools (LP tokens) as building blocks for farming, staking, or collateral
Integrate swaps into dApps via simple smart contract calls
Key characteristics of AMMs on Relix:
Native settlement – all swaps settle on Relix Chain, not on an external rollup or sidechain.
Composable LP tokens – LP positions are standard ERC-like tokens that can be used across DeFi (staking, lending, governance, etc.).
High-throughput execution – combined with Relix performance, AMMs can support frequent swaps and arbitrage with low latency.
Developer note: You can integrate AMM routing directly in your contracts or off-chain services using standard interfaces for pools, routers, and LP tokens.
Lending Markets: Capital Efficiency on Relix
Lending and borrowing protocols on Relix create capital efficiency for the ecosystem by allowing users to put idle assets to work.
Typical features of lending markets on Relix include:
Overcollateralized borrowing – users deposit assets (e.g., RLX, stablecoins, or LP tokens) as collateral and borrow against them.
Dynamic interest rates – rates adjust based on utilization of each pool.
Composable collateral – in many designs, not only base tokens but also LP tokens or yield-bearing tokens can be used as collateral.
Benefits for builders:
You can design products that leverage existing liquidity instead of creating isolated pools.
Protocols can integrate directly with lending markets to:
Automate leverage strategies
Enable yield products
Support margin trading or credit primitives
Design guideline: When defining collateral sets for your protocol, consider the risk profile of tokens (volatility, liquidity depth, centralization), not just their presence on Relix.
Liquidity Layers: Shared Infrastructure for All Protocols
Rather than each protocol trying to build its own isolated liquidity silo, Relix encourages shared liquidity layers:
Base AMM liquidity – the primary layer where most spot liquidity lives (RLX pairs, stablecoin pairs, major ecosystem tokens).
Meta-liquidity – layers built on top of AMMs and lending markets:
Yield aggregators
Liquidity mining programs
Derivatives or structured products using AMM LP tokens as underlying
Protocol-owned liquidity (POL) – projects can manage their own treasury-owned liquidity on Relix to stabilize pricing and deepen markets.
All of these layers settle on-chain on Relix, which means:
Clear, verifiable TVL and liquidity flows
Standardized contract interfaces for integrations
Easier composition: one protocol’s LP token or vault token can be consumed by another protocol as a building block.
Composable Smart Contracts
The strength of DeFi on Relix comes from composability: contracts can trust, extend, and stack behavior on top of each other.
Examples of composable patterns on Relix:
AMM + Farming
Users deposit into an AMM pool → receive LP token
LP token is then staked in a farming contract to earn additional rewards
Lending + AMM
User supplies collateral to lending protocol → borrows a second asset
Borrowed asset is used to provide liquidity in an AMM pool
Result: leveraged LP position, with all positions secured and visible on-chain
Liquidity + Derivatives
Perpetuals or options protocols can use oracle + AMM pricing sourced from Relix-native liquidity
Liquidations and funding payments are settled directly on-chain
Developer benefits:
You don’t need to reinvent basic primitives (swap, lend, stake).
You can focus on your protocol’s unique logic, while relying on Relix DeFi stack for the rest.
Upgrades and new products can be shipped quickly by reusing existing, battle-tested contracts and interfaces.
Building DeFi on Relix
When designing DeFi protocols on Relix Chain, keep these principles in mind:
Integrate, don’t isolate
Use existing AMM pools for base liquidity instead of single-purpose DEXs.
Consider using existing lending markets instead of building custom collateral engines when possible.
Design for composability
Expose clean, minimal interfaces for your contracts.
Represent user positions with tokens (LP tokens, vault shares, receipt tokens) that other protocols can use.
Leverage Relix performance
Short block times and fast finality allow for:
More granular liquidation logic
More frequent rebalancing
Real-time UI updates and dashboards
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