Recent years have seen the substantial development of DEX. In 2019, major exchanges launched their dedicated public chain DEX in succession, bringing along a boom in DEX. The following year they have evolved DEX. DEX, such as Uniswap and Balancer based on Automated Market Making (AMM), has pushed DeFi development to its climax. In addition to the advantages of no permission required in token listing and self-custody of private keys, DEX also meets the needs of some users for long-tail tokens through the novel liquidity solution of AMM. However, in terms of trading methods, the mainstream AMM DEX only supports market orders, so users cannot initiate limit-order transactions but trade directly.
OneSwap is a DEX that supports permission-free token listing and AMM. It supports limit orders, and the built-in OneSwap Wallet provides convenience for many novices. As a general-purpose decentralized exchange, OneSwap will first build a trading platform on Ethereum, which can be connected to any public chain platform in the future.
To better understand OneSwap, we can compare it to Uniswap that we are more familiar. Uniswap is a decentralized transaction protocol, which can be simply taken as a decentralized exchange. Most of the existing decentralized exchanges (DEX) are based on the AMM model. If Uniswap is a general-purpose DEX and Curve is a DEX for stablecoins, then OneSwap is a general-purpose DEX in an optimized AMM model with limit orders.
To facilitate OneSwap’s on-chain governance and encourage community development, OneSwap on each public chain will issue corresponding governance tokens ONES for liquidity mining, transaction mining, and on-chain governance voting.
OneSwap has fully drawn on the good practices of AMM projects, and then integrate the on-chain order book on that basis to improve the trading experience of AMM DEX users. This not only provides users with a familiar way to buy and sell orders, but also further enhances the liquidity of digital assets on DEX, probably breaking the liquidity ceiling for Uniswap in the future.
In addition, with the help of the OneSwap Wallet and one-click token issuance tools built in the platform, OneSwap can provide users with a more convenient, faster, and easier one-stop trading experience, reducing all the inconveniences in the current DEX.
For the time being, AMM projects only support direct exchange. Once the Ethereum network is congested, such a market order not only costs users huge transaction fees but may also suffer transaction failure. For example, the Gas Price has exceeded 60Gwei recently, and users have to pay a transaction fee of more than 10U for a transaction, which is unaffordable for those frequently engaging in small-amount transactions.
The limit order mode allows users to place orders in advance at the price they expect when the Ethereum fee is relatively low, avoiding failure in transaction confirmation in network congestion. Under this mode, users will seize the best investment opportunities without keeping an eye on the price.
Unlike other projects that lack due openness and transparency, OneSwap’s ONES will be managed on-chain by governance contracts and lock-up contracts, and will be distributed by such means as transaction mining and liquidity mining in an open and transparent way through community governance voting to push the platform to a cold start as initially expected.
Besides, part of the transaction fees on OneSwap will be spent on buying back ONES and burning it to form a deflation model. In the future, governance tokens of OneSwap will be issued on a suitable public chain platform outside Ethereum correspondingly, which is believed to inject greater potential and impetus into OneSwap for further expansion.
Both Uniswap and OneSwap are general-purpose DEX. To be specific, OneSwap is characterized by its limit order. Yet it’s still hard to tell who will emerge victorious in the future.