Decentralized Finance has yet again proved that it is an endless pit of innovations and unique ideas for the cryptocurrency and blockchain realm, attracting experienced traders and amateurs to its feature-filled opportune platforms that make them leave wanting more. Adding to the list of hundreds of DeFi protocols, a contemporary protocol has popped its head out – The Swap protocol.
Put forward by Crypto.Com, a holistic ecosystem that is currently catering to over 3 million customers. Set out to offer users a potent alternative to conventional methods of financing, this platform has all services from exchanges to wallets to payment gateways. But enough about that now. Our product of interest for the next 5 minutes is the DeFi Swap protocol. Hopefully, by the end, you’ll want to launch your own DeFi protocol like Swap.
What’s so special about DeFi Swap?
This question begs to be asked. In 2021, Decentralized Finance has a solution or rather a fully functioning protocol for any function a user might want to initiate in the cryptocurrency realm. So this has to be something sui generis. Essentially, the DeFi Swap protocol was built to provide users the best available swaps on their coins and tokens for the highest possible rates in the market. This is done using proven and audited protocols and algorithms. The Swap protocol also offers its users capital incentives through its native token – CRO. Do note that the protocol functions on the sturdy shoulders of the Ethereum Network, which would mean robust smart contracts are implemented to aid operation.
If this hasn’t blown your mind yet, hold on. The highlight of this DeFi Swap protocol is that it offers a range of benefits and stimulants to the Liquidity Providers that keep users glued to this prolific platform. This Triple Yield incentive program has garnered a reputation of its own.
How can the user swap tokens on the Swap protocol?
Swapping is a basic function on the several protocols offered, but the Swap platform adds its own flavor to it. Users can follow the user-friendly steps mentioned below and swap away –
- You’ll have to connect your decentralized wallet (we’re assuming you have one) to the DeFi Swap protocol.
- Proceed to click the ‘Swap’ tab
- An interference will open up where users can type in their desired input token and output token from the list of supported tokens on the platform
- Before clicking ‘Swap’ again, platform users can review the values of the input and output token, the price, the base minimum they’ll receive( differs due to slippage), price impact, and gas fee.
- Once all this information is checked, users can click ‘confirm swap’
- Finally, the transaction can be confirmed on the connected wallet
In the event of a failed transaction, an insufficient output amount is likely to be the cause. The gas fee for that transaction will be spent. To ensure transactions go through, the gas fee can be increased to attract miners or higher slippage tolerance %. DeFi Swap has the answer for all quandaries.
What other functions and features can the user utilize on the Swap protocol?
The DeFi swap protocol offers more than just the usual swapping. Users are provided with a buffet of features to choose from that inevitably ends with utmost user satisfaction. Have a look –
Yes, we already have discussed swapping, but here’s a little more information on what users will get themselves into. In the Swap platform, users can initiate swaps between two tokens that are supported on the platform. To facilitate this trading, users will have to shell out 0.3% as a gas fee. In most cases, there already is a liquidity pool within the protocol for swapping, say an ETH and USDT pool. But in case there isn’t, the protocol works its magic.
The protocol sets routes to trade across several liquidity pools to expedite the trade. Say, for example, a user wants to swap ETH to USDT, but that liquidity pool isn’t available. The platform then first converts ETH to LINK and then from LINK to USDT. This streamlined process rarely keeps users waiting for their desired swap.
Liquidity providers of a particular pool will receive an ERC-20 pool token for their provision into a pool, also as a sign of their having proportional ownership of the reserves. Each liquidity pool is supplied by two ERC-20 tokens. LP’s having pool tokens are eligible to receive a cut of the swap fees that users pay to facilitate the swap only if the users make use of the pool to which the LP has supplied. Moreover, the pool tokens will have to be turned in to receive their percentage of the swap fees. Liquidity Providers, however, must take note that impermanent loss (loss of funds due to volatility between two tokens being traded) is likely to occur, so this fact must be taken into account before proceeding.
Users who hold CRO tokens are in for a slew of benefits and perks. The first one on the list is
- Staking – users can stake their CRO to enhance their CRO DeFi yield between a staking period of 1 to 4 years, which is within the user’s choice.
- Balance – the protocol participants can, at anytime, can view their accumulated and ready-to-claim yield balances.
- Claim – users can claim their yield by paying gas fees through a few clicks.
APY – Annual Percentage Yield–
The DeFi Swap protocol has a calculator with which users can estimate their APY by typing in their CRO Staking amount, time period, and planned liquidity provision details.
Under this option, users can have full access to details on the overall token data, paired token data, liquidity, and trading volume. The DeFi Swap protocol can be accessed by users from a web app and connected through any Wallet Connect mobile wallet.
How can users provide liquidity to the DeFi Swap protocol?
If you’ve read this far, you would have noticed that Liquidity providers have a lot of advantages in using the Swap protocol. So here’s a quick run-through on how your users can provide liquidity –
- As always, a DeFi wallet needs to be connected to the Swap protocol
- Users can then proceed to click the ‘Pool’ option
- The ‘Add Liquidity’ option is then picked
- The desired input tokens are then picked, and the amount the user wishes to pool is selected
- The user can then review the prices and info on the pool share
- The ‘Approve’ option is selected then
- An ‘Approve Allowance’ option is shown, to which the user selects the ‘Approve’ button once again
- Once the transaction is confirmed and processed, users can go ahead and click ‘supply’
- A ‘Confirm Transaction’ tab is shown, which is then tapped
Once the transaction is complete, LP’s will receive pool tokens that represent their share of the reserves, which can then be turned in to redeem underlying collateral.
What are the tokens supported on the DeFi Swap platform?
The list given below is for sure bound to grow longer as the protocol is under works to accommodate more tokens.
- Ethereum/Wrapped Ether (ETH/WETH);
- Tether (USDT);
- USD Coin (USDC);
- Dai (DAI);
- Chainlink (LINK);
- Compound (COMP);
- Crypto.com Coin (CRO)
- Yearn. Finance (YFI)
- Wrapped BTW (WBTC)
- Uniswap (UNI)
- Aave (AAVE)
- Curve (CRV)
Here’s how you can now launch your own DeFi protocol like Swap
Blockchain App Factory is a leading provider of superlative Decentralized Finance protocols and platforms. We’ve been doing this for quite some time now, so the experience and proficiency we’ve gathered over the years are sure to reflect on the functionality in the DeFi protocol Development like Swap. All of our solutions are completely customizable, scalable, and white-label to ensure you hold complete ownership of the DeFi Swap like protocol.
We have a team of dexterous, skilled, and adept blockchain engineers and developers who enjoy developing and launching platforms in the DeFi space according to your expectations and requirements. Our international standards are hard to meet in the market.
Schedule a call with us now, and we can get down to business on how to launch your superlative DeFi Swap protocol and make stunning profits in this lucrative market.