Swop.fi is a new type of automatic market maker (AMM) that integrates a pool of different price calculation formulas for specific token pairs.
The project is open to all liquidity providers, and any user can add tokens to the pool and obtain swap fee income. In addition, liquidity providers can also obtain additional benefits from the distribution of governance tokens SWOP.
Swop.fi is now deployed on the efficient and stable Waves blockchain. It only takes a few seconds to record transactions on the blockchain, and the rate for calling smart contracts is only a fixed 0.005 WAVES token (less than 0.02 USD) ).
Two pool types
Swop.fi provides two price calculation formulas
1. Constant Product Market Maker (CPMM): Uniswap and many other classic formulas used in similar AMM projects.
2. Flat: Inspired by Curve, it aims to reduce the slippage of currency pairs with similar prices (such as stablecoins linked to fiat currency.)
Each newly created pool will automatically match the most suitable formula.
When the project is released, the following pools will be released simultaneously:
- WAVES-USDN — CPMM
- BTC-USDN - CPMM
- WAVES-BTC — CPMM
- USDN-USDT — flat
Liquidity provider's income
Users can obtain swap fees by providing liquidity to any pool.
The fee is 0.3% of the number of converted tokens (0.05% of USDN/USDT)
Of all the accumulated fees, 60% is allocated to the liquidity provider of a specific pool, and the remaining 40% is used to increase the capital of the governance token SWOP. By increasing liquidity in the SWOP-USDN pool, SWOP's capital can also be increased.
*All the parameters mentioned above can be modified through governance
SWOP governance token
Swop.fi is managed through SWOP governance tokens. SWOP tokens will be allocated to liquidity providers in the conversion pool.
And SWOP holders will be able to manage the following system parameters:
- Cost value
- The proportion of cumulative fees allocated to the SWOP-USDN pool
- From which pools the liquidity provider can obtain additional SWOP token rewards.
The distribution of the initial SWOP tokens will be completed in the third phase of the project. In addition, the liquidity providers of the 4 basic pools can obtain the corresponding income based on the proportion of their liquidity shares since the project was released.
With the initial allocation of SWOP, the SWOP-USDN pool will also be released simultaneously.
How to get SWOP tokens
1. Become the early liquidity provider of the basic pool before the start of governance.
2. Become the liquidity provider of the reward pool after the start of governance.
For the early liquidity providers, 1 million SWOP tokens will be provided and will continue to accumulate in the first year of operation. After the governance begins, users will be able to vote to select the reward pool, and their liquidity providers will be able to obtain daily SWOP token quotas according to their proportion.
Benefits of liquidity providers:
- There will be 1 million SWOPs for distribution in the first and second years of operation.
- From the third year, its quota will be 75% of the previous year's quota
Inter-chain (cross-chain) liquidity
Swop.fi will provide a way to directly deposit and withdraw pool liquidity from other blockchain accounts completely and transparently. Recharge liquidity from other blockchains will be completed through a gateway based on Gravity inter-chain communication protocol.
route map
The first stage:
- System release
- Provide two formulas for the pool
- Basic pool: Waves-USDN, BTC-USDN, Waves-BTC, USDT-USDN
second stage:
- Will have the opportunity to publish your own pool
The third phase:
- Initial SWOP token distribution
- Provide daily rewards for liquidity providers
- SWOP-USDN pool release
The fourth stage:
support inter-chain liquidity
Automated market maker (AMM) is a smart contract that can realize the instant exchange of tokens to replace the traditional exchange based on the order matching system. The swap rate will depend on the number of tokens locked in the smart contract.
About WAVES
Waves is an open blockchain protocol and developer tool set for Web3.0 applications and distributed solutions. Waves' vision is to support developers to build their own on-chain applications by improving the security, reliability and speed of IT systems, and to promote the large-scale implementation of the blockchain industry.
Official website: https://waves.tech/
White paper: https://docs.waves.tech/en/
QQ：664112321
Public Account: Waves Chinese Community
Weibo: Waves Chinese Community