Jelly Swap Brings Cross-Chain Atomic Swaps to Avalanche
Jelly Swap launches on Avalanche and celebrates the launch with a Christmas trading competition.
Jelly Swap is a decentralized exchange (DEX). Unlike centralized exchanges that custody your tokens for you, DEXs ensure that users have complete control over their tokens at all times.
Jelly Swap enables cross-chain swaps and token trading across Avalanche, Bitcoin, Ethereum (including any token standard on Ethereum), Harmony, and Binance Smart Chain. The platform enables instant trading of tokens supported on these blockchains by using atomic swaps technology.
We sat down with the team behind Jelly Swap to dive a bit deeper into atomic swaps, their application, and how to get started trading.
What are atomic swaps, and what are they used for?
Cross-chain atomic swaps enable users to swap cryptocurrencies peer-to-peer without extending trust to a third party like centralized exchanges or custody solutions. Everything happens from wallet-to-wallet.
For example, if you have an asset on the Ethereum chain (e.g. ETH) and you want to exchange it for another asset on the Avalanche chain (e.g. AVAX), you can use atomic swaps to do that in a completely non-custodial and trustless way. No registration is required.
Atomic Swaps ensure that no single party ever holds both cryptocurrencies at the same time, making it impossible for fraud to occur. In the end, the swap will either succeed for both parties, or the assets will return to their original senders.
At a high-level how does Jelly Swap facilitate atomic swaps?
The mechanism we use is called Hashed Time-Locked Contracts (HTLCs). We created a simple infographic to help you understand the process:
You can read a detailed explanation of HTLCs here.
What are JellySwap’s key features?
We like to summarize them into two clear advantages:
- Swaps: our main goal is to create a bridge between the different networks that allow their users to exchange native assets trustlessly. So far, we’ve integrated Ethereum, Bitcoin, Avalanche, Matic, Harmony, Aeternity, and Binance Smart Chain, and we are currently working on Algorand. These efforts aim to build the basic infrastructure which will finally solve the interoperability issue and help networks communicate with each other.
- Providing liquidity: everyone can become a liquidity provider on JellySwap and participate in the market-making process. We’ve built a simple Market-Making Software that allows you to provide liquidity and start earning immediately from the price spreads. We do not charge any fees. You collect all the profit generated from your liquidity node. We also have some very cool liquidity pool incentives like a 12.6% APY.
With Jelly Swap, you can have your swap executed in a few clicks:
- Choose the desired assets
- Connect your wallets (If you’re using MetaMask, follow this tutorial)
- Click “Swap”
- Click “Withdraw”
You can read a step-by-step guide here.
Jelly Swap Trading Competition
Beginning Wednesday, December 16th at 12PM UTC, Jelly Swap will run a trading competition on Ethereum, Avalanche, and Algorand. The contest will end Friday, December 18th at 12PM UTC. The rules are simple:
- Swap only between: Ethereum, Avalanche, and Algorand
- Rewards: 1. $300; 2. $200; 3. $100 (ranked by volume)
JellySwap is a decentralized application for cross-chain swaps allowing value transfer between different networks
Avalanche is an open-source platform for launching decentralized finance applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Developers who build on Avalanche can easily create powerful, reliable, and secure applications and custom blockchain networks with complex rulesets or build on existing private or public subnets.