Pi Network is accelerating its push into decentralized finance, revealing early tests for its long-awaited DEX and automated market maker on the Pi Testnet - two components that could ultimately redefine the project’s identity.
What began as a social mining experiment is now evolving into a fully-fledged blockchain ecosystem designed to compete with leading DeFi networks.
The decentralized exchange will serve as the foundation of this transition, enabling users to swap tokens directly on-chain without middlemen. Instead of relying on centralized intermediaries, liquidity pools and algorithmic price adjustments will facilitate instant and transparent transactions, echoing the core mechanics behind DeFi giants like Uniswap and PancakeSwap.
At the center of the exchange’s functionality is Pi’s automated market maker (AMM), a pricing engine that balances liquidity and trading demand in real time. Its algorithm dynamically adjusts token prices based on available supply, guaranteeing that users can execute trades at any moment without waiting for a matching counterparty.
To unify the experience, the Pi Wallet will act as a command center for all DeFi activities. Within it, users can swap tokens, manage liquidity, and monitor their holdings – all while earning transaction fees for providing liquidity to pools. Each liquidity contributor receives a proportional share of the 0.3% trading fees collected across the platform, mirroring DeFi’s most successful reward structures.
The Pi Core Team says the goal isn’t just to mimic existing systems but to make decentralized finance accessible to its enormous user base of “Pioneers.” Testing on the Pi Testnet allows the community to engage with complex financial tools in a controlled environment before the full mainnet rollout.
If these trials succeed, the Pi DEX and AMM could become the backbone of the network’s financial layer – transforming Pi from a passive mobile mining app into a self-sustaining DeFi economy. The update signals a bold new chapter for the project, one where education, innovation, and decentralized finance merge into a single ecosystem built by its users.
