CrossSwap Features Highlight — Part 3
As expected, we are now swiftly moving on to discussing how the third feature of CrossSwap aims to end all ‘rug pulls’.
CrossSwap ($CSWAP) is the cross-chain DEX designed for both traders and projects.
Ordinarily, we’ll start by highlighting the current problem, and then explain how CrossSwap resolves it. Let’s go!!!
The Problem — Liquidity Pools
When a project is looking at launching on any of the available DEXes, one factor they have to consider is adding liquidity, and enough of it, to enable seamless trading between the project native token and a stable coin such as USDT/C.
While these initial funds are locked in a smart contract, the risk of smart contract exploitation either by the internal team directly or by external fcators such as hackers, is possible by way of removing the liquidity. Thus locking in the value brought in by active traders for that pool. Ultimately, bagging in the cash and leaving the users on the sidelines — ‘rug pull’. A definition that Coingecko describes as:
“In the context of crypto and Decentralized Finance (DeFi), having been rug pulled means to have liquidity removed from a Decentralized Exchange (DEX) liquidity pool.’’
This issue is not so commonly widespread, however, it happened enough times to put projects and users on a thinking pole.
The Solution — CrossSwap’s 3rd Feature — Automatic Liquidity Locking
CrossSwap’s proposal for resolving the Liquidity problem described above is ‘Automatic Liquidity Locking’.
CrossSwap automatically locks the liquidity added by the team, providing a mutual benefit to both project managers, where their smart contract code is in CrossSwap’s hands (an independent party) hence reducing the risk of external malicious intent, and also users who get protection against their traded funds, thus resulting in an ‘anti-rug pull’ strategy. Additionally, users also get an insurance pass by being able to see the amount and duration of the liquidity locked on the trading interface.
With this feature, CrossSwap ensures the safety of project participants and the long-term success of the project. It’s a win-win!
CrossSwap has been developed by BlueZilla labs, which after being involved in launching hundreds and hundreds of projects, seeing all the issues arising during launching, prioritised the correction over these important issues.
#Random Fact
Did you know that with DEX market becoming more and more popular with an estimated market of 19.48 billion US dollars, March 2021 showed a record-high lock-up volume?
The graph above, indicates how the volume of derivatives locked up in the DeFi sector is expected to continue on its upward trajectory. Something many of us are excited about!
Conclusion
Three down, two more to go. Still, plenty more to be discussed and shared with our lovely community, so stay tuned!
❑ Website: https://crossswap.com
❑ Telegram: https://t.me/CrossSwapDex
❑ Telegram Ann: https://t.me/CrossSwapannouncements
❑ Twitter: https://twitter.com/CrossSwapDex
