FairySwap Litepaper

What is FairySwap?

FairySwap is the first Automated Market Maker (AMM) Decentralized Exchange (DEX) built on Findora, a new kind of blockchain that provides on-chain confidentiality and programmable privacy. With Findora’s EVM, FairySwap gives you unbelievably fast cross-chain swaps with Layer 1 chains like Ethereum and Binance Smart Chain, while minimizing fees and maximizing efficiency.

Development Vision

FairySwap’s development vision and mission: 100% committed to privacy protection, auditable transparency, and permissionless access. Creating a new paradigm of open, democratized, private finance of the future to empower Findora’s DeFi and future metaverse.

Current Problems in DEX Market

In 2021, DEX was definitely the fastest-growing sector in the crypto market. As the most important infrastructure in the DeFi world, DEX shows strong growth capacity. However, there is still a certain gap between it and CEX in terms of overall trading volume, active users and other indicators. In short, DEX is still in development and its future is expected.

Throughout the DEX market, there already exist mature products, such as UniSwap. As the leader of AMM mechanism and the pioneer of DEX, UniSwap has a number of users, but there are also some problems, such as high commission fees and poor incentive mechanism design, etc.:

1. Insufficient incentives for early liquidity providers: UniSwap gradually developed relying on early LP funds. With the AMM mechanism known and recognized by the market, more and more major users participated in staking. However, for early participants, there was not only the cost of funds, but also the cost of time, which leads to early high risk. Despite this, UniSwap didn’t offer fair long-term payback for them.

2. High commission fees: Uniswap’s high commission fees were mainly due to its deployment on the ETH chain. With more users and transactions, ETH GAS fees raised.

Based on the above deficiencies, various ecosystems began to break out. DEX on BSC/HEO/Polygon and other chains rushed into the market, among which MDEX is a representative one. It grew rapidly with the popularity of HECO and achieved over $2.1 billion TVL in only 2 months. Although it has greatly improved the details of the product experience, there still are following deficiencies in the economic system:

1. The mining ecological mechanism is not fair enough: If a project on MDEX wants to participate in mining, it has to ask centralized organizations such as the board of directors and the foundation, which will exclude potential projects with high quality to some extent. In addition, the mining profit is determined by the board of directors, so the incentive mechanism is not completely transparent.

2. Ecological consensus is weak: Although assets on MDEX can be transferred to the BSC ecosystem, the main users are still on the HECO chain. With the development of the OKEX chain and BSC chain, the traffic is gradually divided up. In addition, the HECO chain has weaker consensus than the BSC chain, and its user base is concentrated in the domestic market, which finally leads to the weak position of NDEX.

As NFT/GameFi/Metaverse develop, DEX will still be the backbone and will get better and better.

FairySwap Tokenomics

For the above key problems, FairySwap built the following economic system:

Total Token Supply: 10,000,000 FAIRY tokens

①Genesis airdrop–bring high profit for early users

• Community airdrop: to thank early users’ support for the community, the platform will airdrop 60,000 FAIRY as rewards for the community.
• Staking airdrop: as the first DEX on Findora, it will airdrop 240,000 FAIRY to token holders in the Findora ecosystem and will develop in parallel with Findora in the future.

②Fair mining ecology–Any pool that conforms to the algorithm rules can enjoy the mining permission, which solves the fairness of mining ecology

• Any project can add liquidity to FairySwap. On the platform token mining block, as long as the amount of funds in the pool reaches 100,000 USDT (total value of two tokens ≥ 100,000 USDT), and the commission fee in the pool exceeds 100 USDT for three consecutive days, the platform will open the mining permission; on the LP mining block, as long as the amount of funds in the pool reaches 200,000 USDT (total value of two tokens ≥ 200,000 USDT), and the commission fee in the pool for three consecutive days is over 200 USDT, the platform will open mining permission. All rights depend on whether the algorithmic rules are met
• FairySwap truly follows the rules of the algorithm and fully decentralizes the mining power,which returns to the essence of blockchain and brings the development of SWAP back on track, so that the concept of decentralization can be truly applied.

③Cross-chain transaction–solve the problem of high threshold for participation and high commission fee

• With Rialto bridge integration, FairySwap supports cross-chain transfers to transfer assets between different chains, which not only lowers the threshold for participation, but also enjoys the low transaction fee of Findora ecosystem.

④Based on Findora ecosystem–dig the track of privacy public chain and the consensus power is on the rise

• First of all, Findora is a public blockchain with programmable privacy. Compared with the current public chain on the market, Findora has the advantages of scalability, privacy and interoperability, thus ensuring the security and privacy of FairySwap. Secondly, with the development of the DeFi market, various public chains have mushroomed. Findora is not to be outdone, and the number of its community users keeps growing, laying a user base for the development of FairySwap. Finally, FairySwap always adheres to the concept of openness, fairness and justice, and is the strongest consensus to win the market.

Ecosystem construction

Layout NFT/metaverse

FairySwap enables any user to establish anonymous on-chain identities through the use of FairyNFTs, the building block of an upcoming play-to-earn RPG game. $FAIRY tokens are used to buy FairyNFT and participate in GameFi and other metaversal Dapps.

Dreamland launchpad

Develop Dreamland launchpad to provide a launchpad for project incubation and decentralized crowdfunding, and all services can be operated by paying FAIRY token, and gradually expand the FairySwap ecosystem by enabling more projects.

DAO governance

The ultimate form of the FairySwap ecosystem is a decentralized autonomous organization(DAO), whose members will decide the future direction of the project. In the Web3 era, everyone is a DAO and we believe the future of the project depends on the involvement of users. In the following development, users holding tokens will participate in the construction of 与FairySwap, and we will grow with them together.

Recent Plan

FairySwap is only the first step. In 2022 Q2, there will be the following plans, adding ecological applications and providing convenience for users:

–NFT mint/trade platform

–Complete cross-chain BSC/polygon ecosystem

–Build GameFi ecosystem

The public chain ecosystem is rising and Findora is about to release its energy. FairySwap has a promising future!