VADUZ, LIECHTENSTEIN – November 8, 2021 // XSWAP, the decentralized cryptocurrency exchange built on top of ABEYCHAIN opened to the public on November 6, 2021, with trading, liquidity mining and staking immediately available to users.
XSWAP users were poised and ready to pounce on the opportunity to use the new exchange. Within the first 48 hours of availability XSWAP had attracted over US$20 million in total value locked (TVL), with US$11 million in TVL after only 24 hours. More than one million XT, the official governance token of the exchange, were mined within the first 48 hours of opening to general availability.
Initially launched in August 2021, XSWAP has undergone thorough limited release testing. That closed beta test was successful, making XSWAP the first of what the ABEY Foundation anticipates will be many decentralized finance (DeFi) applications that will be developed by the ABEY user community.
The XSWAP DEX (decentralized exchange) solves several highly impactful issues with legacy cryptocurrency exchanges by innovating an all-new trading model using an automated liquidity protocol and an “automated market maker” system which is neither operated nor controlled by a central intermediary. This is unlike traditional, centralized exchanges.
The XSWAP protocol is built entirely on top of ABEYCHAIN, one of the world’s fastest growing blockchain projects. ABEY has been adding an average of 20,000 active ABEY 2.0 addresses each week since the beginning of August 2021, and now boasts in excess of 140,000 active addresses. ABEY’s evolution and momentum has made it a rival to the more popular, but more expensive and less efficient Ethereum network. XSWAP’s new token economic model aims to provides users with a more reliable trading protocol.
XSWAP is fully compatible with all ARC-20 tokens, multiple assets (such as BTC, ETH, and DOT) and infrastructure including non-custodial, open-source wallet services from MetaMask and the ABEY 2.0 Wallet.
Users looking to utilize XSWAP must have a supported wallet such as MetaMask or the ABEY 2.0 Wallet. Once the wallet is in place, users can add ABEY in order to trade on XSWAP, to pay for “gas”, (transaction fees) in the form of the native ABEY token. Gas payments for each transaction on the chain can vary in price depending on how many users are using the network, as well as the trader's choice of transaction speed – faster transactions require more gas as an incentive for miners to validate than slower ones.
XT is the official governance token of XSWAP and is another innovative feature of the protocol. 1.2 billion XT tokens will eventually be distributed to users through liquidity mining on the protocol. XT gives holders the right to propose and vote on new developments and changes to the protocol through XSWAP’s decentralized governance mechanism. This includes modifications to the way newly minted tokens are distributed to the community and any changes to the protocol’s fee structures. Additional XT airdrops will be available soon.
XSWAP solves a key liquidity problem faced by many DEXs
XSWAP solves a liquidity problem faced by many centralized cryptocurrency exchanges. XSWAP introduces an automated liquidity protocol, an all-new trading model. Users are incentivized to trade on the exchange in order to become liquidity providers, also known as LPs.
XSWAP’s decentralized userbase pools their assets together to create a fund used to execute all trades on the Decentralized Exchange (DEX). Each token listed in the XSWAP protocol has its own pool to which participants may contribute digital assets in exchange for an Annual Percentage Yield (APY) upon the value the user has staked to XSWAP’s LP. This APY amount is returned to the user either in XSWAP’s own XT tokens, or in the form of other tokens, according to user preference.
With the automated liquidity protocol, a buyer or seller no longer has to wait for an opposite party to appear to complete a trade. XSWAP's liquidity pool is algorithmically defined. Traders can execute any trade instantly at a known price as long as there’s enough liquidity in the pool to facilitate the trade.
XSWAP introduces an automated market maker
XSWAP also introduces the innovative automated market maker system for determining the price of each token on the protocol. This alternative method adjusts the price of an asset based on supply and demand. The price of a coin increases or decreases depending on the ratio of how many coins are in a respective pool. The prices for each individual token are determined using a proprietary mathematical algorithm run by the XSWAP protocol which operates in a decentralized manner on the ABEYCHAIN. The XSWAP protocol AMM transaction charges a fee of 0.3% per transaction, which will be entirely distributed to market makers.
XSWAP’s new AMM mechanism aims to reduce the “impermanent loss” risk commonly faced by many first generation AMMs.
By utilizing the XSWAP “oracle”, XSWAP’s AMM pool can maintain an accurate exchange rate even when the pricing of tokens deviates from the external markets. With XSWAP’s oracle function, the exchange rate is no longer determined by the arbitrageur. XSWAP’s oracle function provides price updates and adjusts the weight of the AMM so that the internal exchange rate matches the external market price.
The advantage of this is that arbitrageurs can no longer take profits from the pockets of liquidity providers in the form of "impermanent loss". XSWAP always encourages the liquidity pool to restore balance, because the liquidity provider of the lower-weight reserve pool will earn a higher return until the AMM pool is adjusted to a 50/50 weight, and then it will return to normal.
Out of the many blockchain networks available to developers looking to launch new and innovative dApps, the global team of developers responsible for the XSWAP protocol selected ABEYCHAIN due to its ability to efficiently handle high transactional throughput with speed and cost efficiency while also providing an additional layer of security lacking in most of its competitors.
XSWAP fully utilizes the power and flexibility of ABEYCHAIN
ABEYCHAIN is a hybrid-consensus, multi-layered programmable blockchain which incorporates both modern Delegated Proof of Stake (DPoS) consensus for high-volume and high-speed transactions, along with time-tested Proof of Work consensus for heightened security to protect the integrity of the blockchain. These unique features make ABEYCHAIN a worthy rival to Ethereum as developers begin to look for more scalable and cost-effective alternatives on which to launch their dApps.
ABEYCHAIN already boasts more than 140,000 users in an ecosystem that empowers developers to leverage smart contracts and create robust dApps that are significantly faster and less expensive to execute on the ABEYCHAIN than Ethereum and many of its rivals.
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Source: ABEY Foundation
For more information go to: http://xswap.com
XSwap social media:
Twitter: https://twitter.com/XSWAPofficial
Facebook: https://www.facebook.com/XSWAP-100717919063183
Medium: https://medium.com/@xswapofficial
Telegram public user group (Global/English): https://t.me/XSwapGlobali89
Telegram public user group (Global/Chinese): https://t.me/XSwapCN
