The PoWSwap Project

4 min readSep 17, 2022
PoWSwap — The First Dex to work on ETH POW

This Is How It Begins

Existing decentralized exchanges will not work on ETHPoW or any of the other PoW forks!

So if you want to sell worthless USDC or take advantage of mispricing you would need to interact with their contracts directly.

PoWSwap is here to solve this!

PoWSwap is the first DEX interface to work on ETHPoW. With our app, you interact directly with the existing contracts and liquidity.

We’ve designed it to be the next step forward. with community-oriented features that we believe help improve the protocol, as well as provide further benefits for all the actors involved.

🎓 Protocol Design

🦾 Liquidity Provider Incentives

With Uniswap, liquidity providers only earn the pool’s trading fees when they are actively providing said liquidity. Once they have withdrawn their portion of the pool, they no longer receive that passive income. In addition, even if they were early liquidity providers when the protocol acquires traction, (larger and wealthier) stakeholders like venture funds, exchanges, and mining pools that will contribute a significant amount of capital to the protocol may dilute their return.

With PoWSwap, one can also provide some liquidity into a pool and earn rewards in the form of POW tokens. Even if you decide to stop taking part in the liquidity provision, those $POW tokens will still allow you to continue earning a percentage of the protocol’s fee, which has been accumulated in $POW, unlike Uniswap. As an early adopter to help provider liquidity, you become a significant stakeholder of the protocol.

The amount of LP tokens you stake relative to the total amount staked will determine how much money you will make through staking. Your assets and accompanying reward profits will progressively diminish if you stop providing liquidity.

🪙 Token Distribution

We are aware that many of us currently work as Uniswap pools’ liquidity providers. In light of this, we have created the token distribution mechanics to make transitioning to our system as simple as possible for the current Uniswap liquidity providers!

Anyone who owns Uniswap LP tokens can stake those LP tokens into the matching initial list of pools to start supplying liquidity and earning $POW tokens. When the rewards begin, you will begin earning tokens.

The PoWSwap token will entitle to governance and protocol revenues in the future.

The token distribution mechanics are designed to make it easy for existing Uniswap liquidity providers to start migrating to the PoWSwap protocol. To start providing liquidity and earning POW tokens, anyone holding Uniswap LP tokens can stake those LP tokens into the corresponding initial list of pools. Once done, they will start earning tokens.

At every block, 100 POW tokens will be created. These tokens will be equally distributed to the stakers of each of the supported pools. However, for the first week (until Sep 21st), the number of $POW tokens produced will be 10x, resulting in 1000 $POW tokens being minted per block. This is to incentivize early farmers and adopters of the protocol.

There is no premise or VC token distribution. The only way to mint POW is through staking LP tokens. There were no tokens distributed beforehand. However, In order to ensure the project long-term sustainability — 10% of all minted tokens will go to the dev wallet to support development expenses. hope our community can understand the necessity. :)

💳 Reward Distribution

With the current PoWSwap configuration, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers. later on, in PoWSwap, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to $POW (obviously through PoWSwap) and distributed to the $POW token holders 📈.

🕑 Ensuring Project Sustainability (aka. Dev Fund)

Let’s ensure the long-term viability and sustainability of the project. Following the suggestions of the community — 10% of every $POW distribution is set aside for developers. Hope the community understands the necessity!

🔑 The Liquidity Migration™️

We will transfer all of the staked liquidity tokens to PoWSwap contracts. In order to complete this migration, all Uniswap LP tokens staked on PoWSwap will be transferred to Uniswap, where they will be redeemed for the appropriate token pairs and used to start new liquidity pools. The standard Uniswap pool will be nearly identical to these new pools, with the additional benefit that any fees incurred will be distributed to $POW token holders using the logic described above.

The converted liquidity will power the initial sets of PoWSwap pools after the migration is complete, putting the protocol into use right away. The stakers will continue to receive $POW token rewards from supplying liquidity without having to do anything.

Migration will take place on September 21st — when 10x rewards end.

♟ Protocol Usage

At the protocol and smart contract level, PoWSwap has an identical interface to Uniswap. Which means that if your protocol is currently compatible with Uniswap, it should be relatively simple to integrate with PoWSwap. We will work with various DeFi and other ecosystem tools to start integrating PoWSwap.

🔐 Security Audit

Security is important to us. We reasonably unit test coverage and have tested that everything works on the testnet.

We use SushiSwap contract for the Dex, which is slightly modified Uniswap v2 contract. It has been audited and used over the years.

Check Sushi’s Audit information HERE

💻 Smart Contracts

✔️ How Can You Participate

You can start depositing LP tokens to the MasterChef contract using the PoWSwap interface.

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