Welcome to XSWAP! We wanted to address some of the Frequently Asked Questions we expect users to have. Take a look at our answers:
1. What is Xswap？
A：XSwap is a decentralized exchange & DeFi service platform operated and managed by a global community. It supports circulation, management and application of digital assets from the ABEYCHAIN ecosystem. XSwap provides a wealth of cryptoasset application channels such as decentralized trading, liquidity mining, and staking.
2. What is the background of XSwap? Why choose it?
A：In 2020, development in DeFi (decentralized finance) has begun in full swing. Until now, the TVL (total value locked) in the DeFi space has exceeded 30 billion USD. According to Dune Analytics, the monthly transaction volume of all decentralized exchanges (DEX) in January 2021 has exceeded 50 billion USD — setting a new all-time high. As the leading DeFi application, the DEX has entered a stage of rapid development.
UniSwap SushiSwap, as often regarded as the pioneers of the DEX. However, since they were born in the early stage of DEX development, they are attached with inherent issues such as high transaction costs, large slippage, and long transaction confirmation time etc. XSwap an evolved version of DEX. it has joined forces with mainstream ecosystems such as BSC and HECO to provide a wealth of decentralized applications. XSwap also focuses on the continuous development of the XSwap DAO and optimization of token pools.
The constant congestion of the Ethereum network has led to a sharp increase in the cost of participation in DeFi. Whether it is mining or trading, lending, and financial management, using the ETH network can be very costly. At the same time, competition in the DeFi space is becoming increasingly fierce. Before ETH’s layer 2 solution launches, the zero-sum competition of different Ethereum DeFi projects is likely to continue until a equilibrium is found by the market.
When Ethereum itself cannot keep up with the evolution of DeFi, it will spill over to other public chains. The rapid development of the Huobi Eco Chain (Heco) is proof that this is happening.
XSwap is a decentralized exchange & DeFi service platform built on the ABEYCHAIN. With the integration of automatic market making (AMM) mechanism, liquidity mining and staking. This new token economic model aims to provides users with a more reliable trading platform.
3. What are XSwap’s core functionalities?
All functions of XSwap are performed on-chain. As of now, XSwap’s core functions consists of three parts: AMM trading, liquidity mining, and staking.
The AMM automatic market-making trading panel is one of the core panels on XSwap. It provides users with a low complexity, low gas fee, and decentralized digital asset transaction service that does not require off-chain input. It allows users to easily earn passive income by providing liquidity to the platform.
The AMM trading panel is also linked to liquidity mining, and the XSwap governance token liquidity mining output is weighted differently in the two major trading panels: mainstream tokens and platform tokens.
4. What are the advantages of XSwap versus centralized exchanges?
A：One of the biggest differences between the DEX and the centralized exchange (CEX) is the trading mechanism. XSwap’s AMM mechanism is able to incentivize market makers to provide liquidity for the platform. Unlike the traditional order book transaction model, all AMM transactions are executed on-chain and only uses assets in the DEX’s liquidity pools.
The liquidity pool allows users to seamlessly switch between tokens on the blockchain in a fully decentralized and non-custodial manner. Liquidity providers (LP) pledge their assets to earn a portion of transaction fees and liquidity mining rewards. Through a series of feedback loops, the DEX can achieve lasting sufficiency of liquidity and stable trading volume over time.
Another core advantage of XSwap as a DEX is that users can manage their and store assets in their own unique private keys, there XSwap users achieve self-sovereign identity (SSI) by managing their keys and credentials.
SSI is a digital reform trend by the logic that individuals are able to fully control their identities without the intervention of centralized institutions. This also means that the DEX has no power over the user’s assets. Even though the DEX may be attacked, the user’s assets will always be safe by remaining in their individual wallets.
At moment, all CEXs require KYC certification, and users’ private information is also stored in the CEX’s database. This puts users’ privacy at risk. XSwap does not require any KYC process, and all assets are always controlled by the users themselves.
5. Introduction of XSwap’s governance token — XT
A：XT is the only governance token of the XSwap platform. XSwap users can earn it through liquidity mining and staking. XT can be used to pay transaction fees and purchase other services that the XSwap ecosystem will offer in the future. A wide range of use case scenarios, and XT’s repurchase and burning mechanism provides effective protection for XT’s value. The total supply of XT is 1.2 billion tokens.
(1) Liquidity mining: 1 billion tokens. The first cycle of liquidity mining produces 500,000 tokens per day, the weekly output is reduced by 3% on wards;
(2) Team rewards: 100 million tokens. Distribution starts one month after launch. This portion of XT will be unlocked linearly in 48 months;
(3) Market and the community rewards (airdrops, promotion rewards): 50 million tokens. This portion of XT will be unlocked linearly in 24 months after launch;
(4) Early incubation rewards: 50 million tokens. This portion of XT will be unlocked linearly in 24 months.
6. What are the ways to earn XT?
A：XT can be obtained through airdrop rewards, liquidity mining and staking on XSwap.
7. As the native asset of XSwap, what is XT’s role in the XSwap ecosystem?
A：XT is the only token issued by XSwap. All applications in the XSwap ecosystem will require the use of XT. XSwap’s goal is to evolve as the world’s largest decentralized digital asset trading/DeFi platform, and continue to integrate with other their major industries of society.
Those who hold the XT token can participate in liquidity mining and staking services.
8、What are the ways for XT holders to earn yields?
A：XT holders are be able to earn yields from becoming a liquidity provider (LP) or participating in staking on XSwap.
The total reward output is 500,000 XT per day in the first stage of liquidity mining.
9、What is XSwap’s current status and its long-term plans?
XSwap’s long-term goal is to become a comprehensive DeFi platform with a leading reserve of assets and liquidity. At the moment, XSwap has already established a relatively complete ecosystem. With the help of its three core business modules.