The blockchain technology underlying cryptocurrencies has evolved over the past few years to create a whole new Decentralized Finance (DeFi) movement. In simple words, DeFi is a collection of alternative financial services that are analogues to traditional products like savings, loans, trading, insurance, etc., built over blockchain technologies. Among all, trading has emerged as the strongest use case for DeFi, mostly due to the rising number of cryptocurrencies and the price volatility associated with them, among others.
Making efficient trading on DeFi applications possible is Automated Market Makers (AMM). One such AMM that is widely known among the crypto community is Uniswap, which allows users to exchange one ERC20 token with another on the Ethereum network in a semi-automated fashion. The smart contract based Uniswap allows users to trade tokens by avoiding platform fees and middlemen while solving liquidity issues prevalent with other decentralized exchanges.
Even though Uniswap has made a name for itself by creating practical AMM based DEXs that are independent of order books, there are still a lot of shortcomings that need to be addressed. One project that is working on fixing some of the issues faced by the likes of Uniswap is OneSwap. The OneSwap project that is a completely decentralized smart contract-based transaction protocol that supports permission-free token listing and automated market making. By design, it supports both traditional order books and AMM for a much better trading experience than the likes of Uniswap.
The AMM based on-chain order book implemented by OneSwap allows users to place both market and limit orders so that they can buy and sell orders as per the target price. It also offers an enhanced user experience through OneSwap Wallet while enabling quick deployment and management of smart contracts. OneSwap’s flexibility extends to the ability of users funding its liquidity pool so that they can put their idle digital assets to work and earn transaction fees from it. The hybrid AMM + On-chain Order book model allows uninterrupted trading by matching market orders with AMM as well as order book prices to find the best price for processing. Any order that can’t be fulfilled at existing conditions will be temporarily saved on the order book, to be processed using the Constant Product Market Maker (CPMM) model.
Transparent and Stakeholder Friendly
Traders rely on market information to devise their trading strategies. However, platforms like Uniswap have failed to maintain a transparent and trader-friendly model by offering just a simple transaction interface.
OneSwap draws inspiration from the tried and tested models that have so far proven useful for traders. It offers users comprehensive market information and analytical tools like candlestick chart, order ticket, depth map, price trends, trading volumes, depth, etc. for all supported cryptocurrencies, which in turn helps traders make informed trading decisions.
Apart from traders, other stakeholders on OneSwap include liquidity providers. While liquidity mining is already part of AMM models to incentivize users, OneSwap has added an additional incentive mechanism in the form of transaction mining where only Takers are charged a fixed percentage transaction fee which is used towards enhancing the liquidity and buying back the platform’s ONES governance token.
ONES Driving OneSwap
ONES is an ERC20 governance token that plays a role in liquidity mining, transaction mining, on-chain governance voting, transfer of ownership and blacklist mechanism. ONES token holders can float proposals, vote on such proposals, and even trade them against other assets on secondary markets. The platform uses 40% of the transaction fee generated from Takers to repurchase ONES and burn them on a regular basis to regulate the token’s value over time. With OneSwap public beta going live, users can participate in either liquidity mining or transaction mining for any of the whitelisted crypto pairs to start earning ONES as a mining reward.
Public Beta Now Live
OneSwap is one of the sought-after projects in the DeFi space as the community waits for the platform to go live. The potential of OneSwap to drastically improve DEX products is well recognized by the crypto industry players as well as community members. In fact, due to its promising innovative outlook, it has already received the backing and support of the CoinEx exchange. Today, the wait is finally over as OneSwap public beta goes live, which will be followed by the official launch of liquidity mining, traditional mining, and ONES ITO on CoinEx a couple of days later.
During the public beta phase, users stand to earn 300,000 ONES as mining rewards and another 200,000 ONEs as bug bounty.
Learn more about OneSwap Public Beta at – http://www.oneswap.net/