Waves Tech has announced the launch of the Swop.fi automatic market maker. The new service on the Waves blockchain will allow liquidity providers to receive rewards for exchange transactions.
Swop.fi combines several types of liquidity pools with different pricing formulas that are most optimal for each pair of tokens. Anyone can send coins to the pool and earn commissions from exchange operations. Additional remuneration is provided for liquidity providers when distributing the SWOP management token.
An automated market maker is a smart contract that allows you to instantly exchange tokens and replaces the traditional order book exchange. The exchange price depends only on the number of tokens that are stored on the smart contract.
The network fee for calling a smart contract in the Waves ecosystem is fixed at only 0.005 WAVES (less than 2 cents).
Swop.fi provides two pricing formulas:
1.Classic with a constant product (Constant Product Market Maker, CPMM);
2.Reduced slippage for stablecoins (Flat).
For each newly created pool, you can choose the most suitable formula.
At the time of launch, the following pools are available:
WAVES-USDN - CPMM;
BTC-USDN - CPMM;
WAVES-BTC - CFMM;
USDN-USDT - flat.
The commission for exchanging tokens in the pool is 0.3% of the amount (0.05% for the USDN / USDT pair). Of the commission funds, 60% goes to the liquidity providers of this pool, and 40% goes to increase the capitalization of the SWOP management token by sending funds to the SWOP-USDN exchange pool.
Holders of SWOP tokens will be able to manage the following parameters:
the size of the commission;
the share of the commission sent to the SWOP-USDN pool;
selection of pools whose liquidity providers will be additionally rewarded with SWOP management tokens.
The initial distribution of the SWOP token will take place during the third phase of the project. Liquidity providers for the four underlying pools will receive a number of SWOP tokens corresponding to their share of liquidity in the pool since the launch of the project.
The SWOP-USDN pool will be launched simultaneously with the initial SWOP distribution.
1 million SWOP tokens are reserved for early liquidity providers and will be credited daily for the first year.
Waves Tech is a comprehensive ecosystem of innovative blockchain solutions and products focused on cross-chain decentralized finance (InDeFi). Waves Tech takes advantage of the Waves, Neutrino and Gravity blockchain protocols.
Earlier, the Waves developers announced the integration of the Solana blockchain into the Gravity protocol.
