While centralized exchange (CEX) platform is still consistently haunted by security incidents, decentralized exchange (DEX) on the other side has proven to be a promising direction, especially with the rise of automated market maker (AMM) projects like Uniswap. Together with other DeFi projects, such as MakerDAO, Compound etc., we do believe that DeFi has the potential to change the existing financial system fundamentally. But before that DeFi needs to attract more users, where user experience plays crucial part. Take Uniswap as an example, although the total locked value in Uniswap continues to grow, with the lack of limit order, trading experience is still far away from that of CEX. Therefor we created OneSwap, a fully decentralized exchange protocol on smart contract.
OneSwap is a fully decentralized exchange protocol on smart contract, with permission-free token listing and automated market making. On July 29, 2020, the official website was launched.
• Support Limit Order
To solve the defect that other similar platforms can only allow users to accept platform-set price transactions, the traditional order book is also available on OneSwap. Users can place limit orders by themselves, enabling more flexibility to the trading.
• Permission-free token listing and trading pair creation
OneSwap supports permission-free token creation, listing, and transactions without any listing fees. Users can trade on OneSwap with all tokens that meet the ERC20 standard.
• Automated market making
OneSwap applies the automated market making (AMM). Users can establish liquidity pools without permission, and make markets through automated algorithms. Liquidity providers can provide liquidity reserves for promising tokens. OneSwap will exchange two ERC20 Tokens in the liquidity pool based on a constant product algorithm, and the commissions obtained will be distributed to liquidity providers.
How It Works
OneSwap is a fully on-chain one-stop exchange service platform that can be implemented on any smart contract enabled blockchain. By combining automated market maker protocol like the constant product formula of Uniswap and carefully tuned on-chain orderbook, OneSwap supports market order as well as limit order while preserving enough liquidity. All cryptocurrency assets are managed purely by non-upgradeable code in OneSwap, where no one has any super rights and the code itself is reviewed by top security experts to obviate any potential vulnerability that might lead to assets loss.
To function as automated market maker, OneSwap pair maintains a liquidity pool made up of an invariant k for the two related tokens. If the reserves of the two tokens are denoted as x and y respectively, then the constant product formula requires that the product of x*y must remain as k after trading. Anyone can inject more liquidity into the pair by depositing. OneSwap pair uses ERC20 token to record the shares of each liquidity provider.
Mining Incentive Program
To facilitate governance and to encourage liquidity mining as well as trade mining, OneSwap project introduces a new ERC20 token, named ONES, which has a fixed total supply. All liquidity providers and traders will receive ONES in proportion to their deposit or trade quant as rewards.
The future is coming. OneSwap will stand by your side.
Stay tuned for more information!