Speed Defines The Winner: Can CWVswap Wear The DeFi ‘Crown’?
Recently, CWV and BICC founder Neo Wang announced a news that CWV mainchain will launch CWVswap. CWV brought many surprises like the DeFi ecosystem to the cross-chain liquidity pool, excellent web property and inexpensive service charge, and the new launched DeFiking on 16 August in such a short duration.
It is a known fact that CWV mainchain is testing CWVswap. CWVswap will take the advantage of the high properties of CWV to mainly solve the low efficiency, network congestion and high service charge issues and hence providing superior qualities like the qualities in centralized transaction.
CWVswap focuses on decentralized financial innovation, a platform that includes games, loan, mining, ABS, and quantification linking the mainchains to the whole ecosystem, providing fast-speed and low-cost platform for application scenarios in DeFi industry.
CWVswap will be inserted in BICC and provides switchable access between DEX and CEX.
CWVswap and DeFiking are both led by CWV.
In 2020, who will have the ability to wear the DeFi ‘crown’?
This year, the growth momentum of Uniswap has been beyond the imagination of considerable exchanges. Within a year, small investors and financial predators all have participated in this game.
The answer is simple: profitable.
Uniswap is a decentralized token exchange protocol based on Ethereum. The token issuance does not need permissions, with less friction. It realizes the exchange in ERC20 tokens through ETH.
The ‘profit’ comes from Uniswap highlighting the risk investment of DeFi and enlarging the game essence. Further, its logic is very similar to the topical ICO in 2017. The explosion happened in a short time, considerable token exchanged in Uniswap every day and tons of users entered this market and issuing token and investing token in the secondary market.
In doing so, many projects derived from DeFi, but have gone far away from DeFi. Lack in play principles, application, value and implementation, these projects probably will be short-lived in DeFi field eventually.
No matter of any shortcomings, the innovation of Uniswap still contributes to DeFi.
Uniswap should not become a malformation product of capital game after the ‘game’ war else it is such a waste of this promising innovation.
The birth of CWVswap is coming, with background of the explosion of Uniswap but discarded the failing of ‘game’. Hopefully, CWVswap can be a real king application, bringing developmental momentum for DeFi industry.
The Preliminary Exploration of DeFiking
The popularity of DeFi has been for a while. The news about CWVswap is not the first time that Neo Wang speaks for the DeFi in CWV main network. DeFiking is a perfect example of this.
Issued on 16th August in community, the CWV foundation supported DeFiking was launched on Uniswap, with a growth of 50 times since the launch. As a decentralized DeFi platform of global community consensus, DeFiking has landmark meaning for the layout of CWV in DeFi industry.
1. It helps in building DeFi ecosystem. Provide communities with decentralized innovation opportunities, including opportunities in mining, lending, ABS, quantification, derivatives, and many other fields. Through DeFi Incubation platform of the decentralized community, carry out deflation operations such as dividends, repurchase and destruction.
2. Consolidate the DeFi functions on the CWV BaaS platform, and test the ability of developing, landing, and carrying DeFi applications as a basic public chain.
3. As a cross-chain contract gateway, DeFiking supports the function of CWV platform and other public chains cross-chain docking.
4. Oracle: In application scenarios such as lending, insurance, stable coins, decentralized leveraged transactions, financial derivatives transactions, etc. involved in the DeFiking platform, oracle is needed to realize the data interaction between the blockchain world and the real world, and realize the main chain and centralization Interoperability of exchanges.
“Constructing a complicated and high-performance DeFi, CWV is a better choice. DeFi on Ethereum needs to use many difficult combinations to compensate for the defects of transaction delays, gas attacks, reorganization, and lack of an ordered database.”
Objectively speaking, the neck bottles that Neo Wang pointed out exists on Ethereum. This means that the DeFi ecosystem will not be limited inside of Ethereum. Other public chains with potential also need to build a DeFi ecosystem to ensure the overall prosperity of the cryptocurrency ecosystem.
In fact, the focus and traffic that DFK focuses for CWV, as well as the various data or functions of DeFi applications, including but not limited to speed, security, gas fees, cross-chain currency conversion, oracle, have exceeded the entire team’s estimation. This is the reason why Neo Wang led the technical team to release CWVswap in advance. By working together, DFK and CWVswap can accelerate the influence of CWV on DeFi.
CWVswap Is Catching up the Precedents
CWVswap is a token exchange protocol based on the CWV main chain. It is decentralized and not only different from traditional cryptocurrency exchanges, but also from ordinary decentralized token exchanges. CWVswap is a set of contracts deployed to the CWV network, and all transactions are carried out on the chain.
Like other DEX, it can freely deposit tokens for exchange, and can be withdrawn freely, without the registration, identity verification and withdrawal restrictions of centralized exchanges.
Although Uniswap was the first to initiate a substantial challenge to CEX, the final blow to CEX may be CWVswap, as it is closer to the essence of DeFi and has the following advantages:
1. The speed of making fortune
The counterparty of CWVswap is not other trading users, but the token pool. Having an automatic market-making model to calculate the transaction price, it has the huge advantage of unlimited liquidity.
Specifically, ordinary exchanges will have the concept of limited price orders, and ordinary market makers will set prices to provide liquidity, yet these do not exist in CWVswap.
What CWVswap does is to mix the tokens together. At the same time, the market maker does not need to specify the price at which it wants to buy and sell, just provide token funds, and the rest can be resolved through mechanisms.
One of the characteristics of CWVswap is to bring everyone’s liquidity together, making market according to the algorithm. That means, it is essentially an automatic market-making service based on algorithms. In theory, it can provide unlimited liquidity, have a large order size, but there is no need to worry about the small flow pool.
For the communities and users in the CWV ecosystem, CWVswap lowers the threshold for them to enter the DeFi field. It does not need to conduct more bidding or order management of quotations. Small communities or even individual users can also become market makers. Provide liquidity and earning fees. CWVswap is also suitable for microtransactions, such as machine-to-machine transactions.
In short, if someone buys a certain trading pair on CWVswap, the price of the token will increase for sure. This is a natural way of communication, because if you buy it, you must go back to promote the coin and let others buy it. Profitability will directly drive the increase of CWVswap trading volume.
Especially compared to Uniswap’s cold start from zero, the traffic advantage of the CWV’s 1 million+ node consensus community is coordinated with CWVswap’s pricing mechanism and unlimited liquidity. The potential energy that can be burst and created in the short term is unimaginable. As such, the wealth effect is hundreds of times up at every turn.
2. User experience
User experience is mainly manifested in three aspects: one is transaction speed, the second is whether it is friendly to beginners, and the third is transaction fees.
In terms of speed, Uniswap cooperated with Plasma Group and adopted Optimistic Rollup to reach 200 TPS. The current block height of CWV is nearly 50 million blocks, and the TPS/CTPS is above 50,000, by which the advantages of transaction speed is understandable. In addition, test data shows that relying on CWV’s secure and high-performance main net, CWVswap can provide a trading experience like the centralized exchanges.
From the perspective of user-friendliness, CWVswap has made many optimizations to lower the threshold for users, including the beginners. For example, the transaction page of CWVswap and the transaction data of the project are separated, which increases domestic localization, access acceleration, integration of information and other functions. It is more in line with the user habits.
As for the cost issue, everyone knows that Ethereum is congested and with high gas costs. Uniswap even maximizes the pain points of the high single payment (up to ten dollars) on Ethereum.
On August 11, the total transaction fees on Uniswap exceeded the total Bitcoin miner fees. There is no doubt that in the next stage, the contradiction between Uniswap’s popularity and Ethereum network congestion cannot coexist for a long time or be ignored and taken for granted.
To solve these pain points, CWVswap provides a new solution. Its gas utilization rate is higher and there is no ETH premium cost, so the gas fee is cheaper, and the network is smoother.
3. Universal DeFi platform
Even if everyone knows and firmly believes that DEX will eventually replace CEX and DeFi will eventually replace CeFi, no one dares to assert how far this future is.
The emergence of CWVswap may change everyone’s view.
Both CWVswap and Uniswap use the AMM (automatic market maker) model, which is conducive to the development of the DEX ecosystem. Uniswap is more like one of the business sectors of CWVswap. CWVswap is more like a universal platform for DeFi.
CWVswap is based on the millions of communities of CWV to achieve traffic capture, creating a full-system DeFi application for games, lending, mining, ABS, index funds, and quantification. It is not only limited to AMM, but also to ERC20 currency trading and venture capital.
In addition, the mutual circulation of high-quality assets in different mainstream blockchain networks is not a small problem. For example, in lending and transaction scenarios, different assets such as BTC and ETH are required to realize convenient circulation, which means that the inter-chain communication needs to be realized. However, Uniswap built on Ethereum cannot achieve anchoring and intercommunication with other assets on the chain.
CWVswap is inserted in the BICC trading platform, replacing manual quotations with established algorithms, and removing centralized matching and clearing. In addition to providing ETH and ERC20 token exchange liquidity pools, it can also link major chains and ecosystems to provide cross-chain token exchange liquidity pool and anchoring. It truly has the potential to quickly open up DEX and CEX transaction switching channels, providing a high-speed and low-cost platform for the application of DeFi in the field.
Speed Defines the winner, late-comers can win.
From the above three points, we can see that CWVswap has learned a lot from Uniswap’s practice and developed rapidly. It is the epitome of leading DeFi projects and is moving forward steadily in constant iterations.
In the End
DeFi is generally understood as decentralized finance, that is a financial system built on a distributed network. Because it is completely based on on-chain assets and smart contract operation, it does not need to be interfered by off-chain information accuracy and effectiveness for the time being. This makes the rapidly progressed scenarios for blockchain applications, involving decentralized lending, decentralized transactions, stable coins, and many other fields.
After two years of tempering in 2019 and 2020, DeFi has grown into an important force that cannot be ignored in the entire encryption market. Uniswap has obviously only ignited the AMM field. With the release of CWVswap and DeFiking, DeFi market potentially will welcome new breakthroughs in the future.