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FairSwap is Back! LIEN/USDC Now Available

Start trading now on FairSwap. https://app.lien.finance/

Dear fellow crypto enthusiasts and Lien Protocol users,

FairSwap will go live today!

The first trading pair that is available in the new version of FairSwap is LIEN/USDC.

Initial liquidity is equivalent to 300,000 USD that is split between 3000 LIEN and 150,000 USDC.

We have also provided liquidity on Uniswap for the LIEN-ETH pair.

Liquidity that has been additionally provided on Uniswap is approximately 100,000 USD.

Why is FairSwap a Better Exchange?

Why did we decide to bring back FairSwap?

The reason is the same reason we launched it in the first place -

to provide an environment where users can trade fairly, without being taken advantage of through front-running.

FairSwap is a Uniswap-inspired DEX protocol that utilizes AMMs (Automated Market Makers) and is designed to be robust against front-running by combining the innovation of AMMs with the idea of frequent batch auctions.

If this is your first time hearing about front-running, learn how it can negatively impact your trades by reading the following article:

https://medium.com/lien-finance/why-initial-fairswap-listing-is-fairer-than-initial-uniswap-listing-940472a9deaa

Nik, who is one of the LIEN Ambassadors, has eloquently explained how front-running is executed:

In Uniswap any arbitrager can see what buy orders are waiting to be validated in the mempool. The arbitrager can choose a high value buy order, make the same buy order and a corresponding sell order. All are now in the mempool. However the arbitrager can set the order in which they are validated by adjusting the gas price of their buy and sell order so that a validator will choose to validate the orders in this order:

1. arbitrager’s buy order

2. user’s buy order

3. arbitrager’s sell order

As the arbitrager’s buy order is first processed it will influence the user’s actual buying price to the worse, meaning the user will only have the chance to buy at p1 and not p0 which the user initially intended to.

By having the sell order in place at the higher price, the arbitrager made a profit or took money from the user.

This is an undesirable situation and is solved by FairSwap through frequent batch auctioning. It still includes a certain tolerance for slippage but slippage is necessary for a liquid system. Still FairSwap can prevent the unfair acting of the arbitrager

Is FairSwap Safe to Use?

The new FairSwap that we will be bringing back is basically the same as the previous FairSwap that was used for the Initial FairSwap Listing of the LIEN token back in September of this year, with the exception of changes related to gas optimization.

Therefore, the new FairSwap that will be going live today is substantially identical to the version that has been audited in the past.

FairSwap operated flawlessly during the Initial FairSwap Listing of the LIEN token and had no issues during the Interruption of Service incident.

Though FairSwap has been battle tested and has withstood the scrutiny of multiple audits, risks cannot be eliminated completely.

As with any decentralized protocol, users should verify the integrity of the code for themselves before using the protocol.

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Lien Protocol

Lien Protocol

A governance-less protocol for creating Options & Stablecoins from ETH. https://lien.finance