OpenSwap Dex
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OpenSwap Dex

OpenSwap AMA at BTSE — A Quick Recap: 15 July 2021

It had been a few weeks since Bruce’s last AMA (in the DeFi world, that’s like a century ago). Which is why OpenSwap team conducted our second AMA in conjunction with BTSE on 15 July 2021.

We would like to thank BTSE for inviting Bruce (Founder of OpenSwap) to participate in the discussion with the community members. It was definitely a very good AMA session for us with a lot of interesting and in-depth questions asked by BTSE community members.

Thank you to everyone who joined us in our AMA event on Telegram on Thursday evening, and for those who have missed out, here’s a recap.

Bruce: Hello BTSE Community! Glad to be here and thank you for having me!

BTSE: Great to have you here Bruce, welcome! Let’s now start with some introductions. Bruce, could you give us an introduction to you and your team?

Bruce: I’m Bruce, key member and founder of the OpenSwap project, a “recovering” enterprise dev, enlightened by blockchain in 2018 and never looked back.

My team’s core strength is technology. However, what we have been aiming to do is to build up a community of talent that crosses boundaries of technology, finance, marketing and more through the many partnerships we have developed and continue to build.

We hope to attract more developers and contributors to our team through participation events such as hackathons that ultimately build up the DeFi community.

BTSE:

Thank you for that introduction! Blockchain is a source of enlightenment for sure. We’re happy to see the community grow continuously through time.

Speaking of the industry and developments, what in your opinion is the problem that you see in the space?

Bruce:

As the DeFi universe continues to expand, liquidity will only be increasingly scattered across multiple chains

The situation is poised to get worse as more new chains emerge with individual DEXes on each chain.

BTSE:

I see, and how does this tie into the solution that your team is presenting? What is OpenSwap passionate about solving in the industry?

Bruce:

On-chain trading and liquidity lacks the flexibility and choice found in centralized options. This is a problem that we at OpenSwap aim to solve by introducing new technologies and concepts…

Liquidity Queues

Hybrid Smart Routing

and Inter-Chain liquidity swaps.

We present this to the community through partnerships with other projects and with our DeFi hub where we will be able to offer the best on-chain pricing and multi-chain arbitrage opportunities.

BTSE:

These are concepts that aren’t very familiar with us. We’d be glad to hear more about this! How is OpenSwap going to solve these problems in the space with the solutions you have just mentioned?

Bruce:

The project began about a year ago during the summer of Defi 2020 when UniSwap was gaining popularity with its AMM liquidity pools. It was then when we decided to address the two primary problems at the time: slippage and impermanent loss.

So, the idea was to provide on-chain spot market priced swaps in the form of liquidity queues. Our team believes that users should have choice, the freedom to swap with any liquidity source. Instead of competing for liquidity with other AMM DEXes, we want to support them and let the users make an informed decision on the optimal swap for their situation. The liquidity queues provide spot-market priced swaps without slippage, offering users a reference price to compare with other sources.

BTSE: That sounds like quite the experience!

Bruce: Ya it sure is a fun ride!

BTSE:

We did a bit of digging and found that you guys are affiliated with IJS Technologies. Could you tell us more about that?

Bruce:

Oh actually IJS Technologies is OpenSwap’s technology contributor.

They actually received a grant from long-time advocate of decentralization and DeFi, OAX Foundation.

We are pretty grateful for their contributions to OpenSwap!

BTSE:

Interesting background! Who else is OpenSwap partnered up with?

Bruce:

IJS is our main technology contributor, they are an award winning technology firm who received grant support from OAX Foundation as I mentioned.

OpenSwap’s contracts are reviewed and audited by CertiK, and we are also part of the first cohort of Impossible Finance who are also on BSC.

We are currently closing out our strategic round and we want to humbly declare that we are well covered across all domains from technology, security, liquidity providers, marketing, community reach, and more.

We got some decent names backing us 😁

BTSE: So we are looking to see these names revealed when the time comes, right?

Bruce: That’s right, stay tuned!

BTSE: Great! The community will be looking forward to that

The next section that we’re going to get into is about what OpenSwap offers.

You’ve talked about these problems in the DeFi space and the effects of it. What do you think is the solution?

Bruce:

As said earlier, liquidity in the DeFi space continues to grow and also increasingly scattered across all these different chains and it only going to get worse as more new chains emerge with individual DEXes on each respective chain.

So my solution to this is to have OpenSwap become a comprehensive DeFi hub offering the best on-chain pricing and multi-chain arbing opportunities, allowing users to experience revolutionary benefits through optimizing their trades with our unique features…

Liquidity Queues

Hybrid Smart Router

Inter-Chain liquidity swaps

and of course (the regular stuff) DEX aggregation.

BTSE: These 4 features are highlighted on your website, openswap.xyz

What are these features listed on the website exactly, could you give us a brief overview? Liquidity Queues, Hybrid Routing, and Dex Aggregator… what do these mean?

Bruce:

Our primary goal is to revolutionize on-chain liquidity with a series of tools culmination into reducing friction with Inter-Chain swaps.

It all starts with the DEX aggregator offering users the choice to fulfill their swap with any liquidity source on any chain.

Then Liquidity Queues will be one of these sources of liquidity that provides more attractive prices by bringing spot-market priced swaps on-chain without any slippage.

Next, the Hybrid Smart Router will allow OpenSwap to utilize existing liquidity in AMM pools in conjunction with OpenSwap Liquidity Queues to execute swaps in the most efficient manner providing the most return for you swaps.

Finally, all these critical pieces will be linked up to make inter-chain swaps a seamless reality!

BTSE: All parts that will work together to make a monster of a machine, I see

Bruce: oh the biggest monster DeFi has seen 😈

BTSE: Love the enthusiasm! Now, more about liquidity queues. This is something that most of us have not seen yet.

What are Liquidity Queues exactly and how can the average joe use this?

Bruce:

The first iteration of Liquidity Queues will bring spot-market priced swaps on-chain with NO SLIPPAGE to all the joes.

All Spot Queues will execute swaps based on an Oracle price feed that tracks the market price. For the average joe who wants to perform a swap — OpenSwap will show various options from DEXes including OpenSwap’s own Liquidity Queues.

We expect the spot-market price of Liquidity Queues will offer some of the most attractive pricing due to zero slippage compared to AMM pools.

BTSE:

How do these features tie back into the problem that you are solving?

Bruce:

The end game is to reduce the friction of moving digital assets between chains.

The DEX aggregator provides the interface to see liquidity available, the optimum routes using the Hybrid Smart Router show you how to get from one token to another, leveraging a blend of existing liquidity in other DEX AMM pools and OpenSwap Liquidity Queues.

Liquidity Queues and Hybrid Smart Router will be launched on other chains with an initial target of EVM compatible chains (Arbitrum, Optimism, Moonbeam on DOT…)

Finally, our bridge vaults managed by our Bridge Troll protocol manages the flow of assets between chains in a decentralized manner to enable Inter-Chain swaps utilizing OpenSwap Hybrid Smart Routers.

BTSE:

Cross chain solutions are all the rage, I am sure the community appreciates the ease of this with your platform

Which feature are you the most excited about? What is the reason?

Bruce:

Our team is most excited about our pending release of Liquidity Queues and the underlying decentralized framework we have developed to enable different flavours of queues to address different usage cases in the DeFi space.

Up first will be our Spot Priority Queues which will allow DeFi trades to swap at spot market prices without slippage and with transaction fees that match what CEXes offer.

Soon after that, we will introduce Spot Range Queues that allow liquidity providers to set a floor price for their trades. This one is ideal for providers who want to activate their liquidity in a specified price range.

Other queues that will be coming includes:

Pegged Queues — that offer a fixed price for a token, and

Limit Offer Queues — that enable institution to set the price for their liquidity based on their pricing strategy.

BTSE:

In terms of impermanent loss, how is your project going to avoid or mitigate it?

Bruce:

Liquidity queues differ from AMM liquidity in that you only provide one side of the pair. Impermanent loss does not apply as liquidity queues are more suitable for parties who want to exit a large position of tokens at market prices — ie. OTC desks

Limit offer queues allow institutions to set their own pricing strategy to offer their liquidity at their desired prices and OpenSwap users may take the offer that best suits their current need — ie. MMs

Bruce:

…To enable Inter-Chain swaps, OpenSwap will be offering liquidity providers to deposit their assets in Bridge Vaults. These vaults will only contain one type of asset, eliminating impermanent loss and allowing LPs to earn bridge fees and farm their LP tokens.

BTSE:

Speaking of swaps, one of the major concerns for everybody is transaction fees. Namely, we’re all trying to incur the lowest amount of fees per transaction as possible.

How does OpenSwap ensure low transaction fees for its users?

Bruce:

Transaction fees are one of the risk parameters that may be voted on by decentralized governance, allowing fees to adapt to current market conditions. For liquidity Queues, transaction fees will be set to 0.1% to be in line with what CEXes are offering.

Our Hybrid Smart Router will also take into account transaction fees and slippage price impact to determine the optimal return for each swap.

BTSE:

How is your solution for impermanent loss better than other projects?

Bruce:

Impermanent loss typically applies to AMM pools where you provide liquidity by depositing both sides of the asset pair. Typically, this is more evident when a stablecoin pegged to a FIAT like USDT is paired with a non-stable asset. For this reason, you will see less depth in liquidity for pairs involving stablecoin on one side in AMM pools, the deeper pools would involve a token paired with BNB or ETH since tokens tend to move up and down together, reducing the exposure of impermanent loss. Since OpenSwap primarily deals with one-sited assets for Queues and Bridge Vaults, liquidity providers will always receive the principal they deposited plus any transaction fees earned.

BTSE:

With that in mind, I’m sure we’re all excited to start using OpenSwap.xyz

Let’s now move on to another very important topic — the OpenSwap token

Bruce: Ah right, the good stuff!

BTSE: The juicy stuff now begins! Tell us more about your token. What does it do?

Bruce:

The OpenSwap protocol will issue a governance token called OSWAP as part of the protocol’s release. The token will be established as an ERC20 token, and will be bridged to Binance Smart Chain to enable the governance of the BSC version of OpenSwap during the initial launch.

So users may use the OSWAP token for the following purposes:

- For liquidity providers, they can stake OSWAP into Liquidity Queues to increase the priority of their liquidity, prioritizing their earnings for trade fees.

- Node operators for the inter-chain bridge can stake OSWAP to earn the eligibility to be a bridge troll, and earn fees as assets cross the bridge.

- Yield farming by providing liquidity for OSWAP pools as well as other contests.

- For users to participate in governance by staking OSWAP to create proposals or vote on risk parameters for the protocol.

BTSE:

So staking, for operating nodes, yield farming, and governance.

Where and when is the project going to launch the native token?

Let us pencil in a schedule to get some OSWAP.

Bruce:

The tentative token launch time is currently penciled down for the end of Summer this year and will be on the Impossible Finance Launchpad. More information about the OSWAP IDO will be provided closer to date. 😊

BTSE:

Impossible Finance? Nice! They are definitely on our radar since they announced their massive list of investors a while back

I guess the community will have to get updates about this through your channels

Bruce: yeah they are solid

BTSE:

More about the functions of OSWAP: How will users be able to stake or farm OSwap? How does that work?

Bruce:

ya we welcome and encourage people to follow us across all socials. At the moment we are most active on Telegram and Twitter.

Bruce:

OpenSwap farming will be introduced soon after the IDO. We do staking campaigns periodically, in fact we will soon launch a new staking campaign, where users can stake OAX tokens and earn OSWAP tokens. Community members can follow us across our social media for more staking campaign updates.

BTSE:

From the perspective of token utility, how is OSWAP classified? Is it a token for governance? Value exchange? Or is it something else?

Bruce:

As mentioned, the OpenSwap protocol will issue a governance token called OSWAP as part of the protocol’s release. The main purpose of the OSWAP token are to:

- Incentivize usage of the OpenSwap platform

- Encourage users to get involved in the governance of the protocol

- Enable platform privileges such as the “priority” features when using the OpenSwap priority queue

- Staking to become a Bridge Troll (node validator) for the Inter-Chain bridge protocol. The stake becomes a bond to determine the transaction size the Bridge Troll is allowed to validate.

BTSE:

Do users gain more OSWAP by using your platform? How are users rewarded with OSWAP under your plans?

Bruce:

As per mentioned above, after the token launch, we will be introducing different ways for users to obtain OSWAP tokens, such as farming, staking, as well as other exciting campaigns. We encourage people to check out our Earn page periodically for the latest campaigns and rewards programs. We may even do flash campaigns and contests sometimes without prior notice, so stay active in our community.

So don’t snooze 😏

BTSE: Hear that everybody? Don’t miss out on OpenSwap!

Are there any plans to have referral rewards for OSWAP holders, or any similar reward program?

Bruce:

This is a good idea💡 We are open to arranging for some referral rewards for OSWAP holders in the future. If community members have any ideas for these kinds of reward programs, or even collaborations with other projects, please be sure to reach out to us on Telegram. We are a community driven project, there’s nothing more important to us than giving the DeFi community what they want and need.

BTSE:

That’s great to hear! Projects that care about their community are always a good bet

Let’s talk about competition. Who do you see as your competitors?

Bruce:

Actually we don’t see anyone as a direct competitor… The beauty of DeFi is that we operate in a co-opetition model, especially in our case where our solution and focus areas span across different areas such as AMM swapping, farming, dex aggregation, cross-chain bridging etc… Our focus at OpenSwap is to introduce novel concepts and technologies such as our Liquidity Queues and Hybrid Smart routing that will strengthen the industry as a whole.

BTSE:

Basically, focus on the vision, and collaborate with other projects rather than work against them

Bruce: that’s right, the true open source spirit!

BTSE: Very positive! We also found something amusing when we were conducting our research:

There are more than one OpenSwaps in the space at the moment, how do you set yourself apart from them? Are they your competitors?

Bruce: Really?

When we chose the name OpenSwap early this year, we were not aware of any other projects using the name and our goal has always been to focus on our innovations and building trust with our partners to establish our name and reputation. Currently, based on my knowledge, we are the only OpenSwap token (OSWAP) listed on industry standard indexes such as CoinMarketCap and CoinGecko and soon we will be announcing other partners… 🤟🏿

BTSE:

CoinMarketCap and CoinGecko, that’s major!

Bruce: I guess deem us legit enough ;)

BTSE: To say the very least! Moving on our conversation to the issue about liquidity. How is your project liquidity solution comparative to others?

Liquidity in DeFi seems to be the Goliath that we are trying to slay

Bruce:

OpenSwap liquidity queues sit in between the AMM DEXes such as UniSwap/PancakeSwap and the order book based CEXes. Spot Queues always execute at spot market prices, removing the possibility of sandwich attacks by frontrunning and backrunning given that trades do not affect the reference price.

Our Limit Offer Queues will not expose the order book to limit front-running opportunities. OpenSwap Liquidity Queues offer an alternative way to buy and sell tokens without causing any slippage.

BTSE:

Speaking of new innovations like OpenSwap Liquidity Queues, Uniswap V3 has a list of features that focuses on solving the current problems on liquidity. How does your project’s features stand against UniSwap V3?

Bruce:

Uniswap provides one of the best solutions for AMM pools. Instead of fighting for this liquidity, OpenSwap prefers to leverage their liquidity to fulfill swaps through our Hybrid Smart Router and use Liquidity Queues when it offers better returns on the swaps. In order for our Inter-Chain swaps to be successful, we would need to use existing liquidity available in AMM pools when Liquidity Queues do not have sufficient supply.

BTSE:

One of their features is concentrated liquidity which claims to make higher capital efficiency possible. This claim is the max capital efficiency to reach 4000x. Have your project team looked into this?

What might be the capital efficiency that could be reached?

Bruce:

Capital efficiency applies to liquidity providers to maximize their returns on capital deployed. This is a known issue for AMM pools because the only capital being put to work to earn fees is concentrated at the current price is the asset being traded. However, the fees are shared amongst all liquidity providers in the pool. For OpenSwap, Liquidity Queues are best suited for users who want to exit their position at market prices and if their liquidity is used, they would receive the transaction fee as opposed to sharing it with all the providers.

If a liquidity provider really wanted to be ultra capital efficient, they could technically stake a large amount of OSWAP in a priority queue for both sides of a pair to ensure that their liquidity is prioritized to be used first. They would just need to set up an automated bot to continuously flip their liquidity back and forth on both sides of the pair to keep their liquidity in the queue.

BTSE: What is the future plan?

Bruce:

OpenSwap plans to launch liquidity queues on BSC, adding new types of queues to offer users with more choice, and expanding liquidity queues onto other EVM compatible chains including L2 ETH such as Arbitrum/Optimism. The Bridge Troll protocol will enable Inter-Chain swaps leveraging our Hybrid Smart Router and Liquidity Queues deployed on the different chains.

Longer term plans are to expand to other chains such as SOL, DOT, AVAX, and other popular chains to come in the future.

BTSE: Exciting updates are to come! Here’s another thing we have found in our research

Bruce: Indeed! Super excited with the journey to come

BTSE:

By the way, what is OpenSwap’s involvement with the OAX Foundation? What is the nature of the relationship?

Bruce:

So OAX Foundation and OpenSwap are not actually related. The story is that OAX gave a grant to our technology contributor IJS late last year, and as one of the early advocates of decentralization and DeFi, we believe that the OpenSwap team can gain a lot of valuable information from the OAX community.

BTSE:

That clarifies everything! OpenSwap has some solid partners all around!

Bruce:

ya we’ve been super grateful for all the support and energy

BTSE:

For the communities and future prospective partners, where do people go to get the latest updates from OpenSwap?

Bruce:

We welcome and encourage people to follow us across all our socials. At the moment we are most active on Telegram and Twitter.

Telegram: t.me/openswapdex

Twitter: https://twitter.com/openswapdex

BTSE:

Thanks for sharing this with us!

Community Member:

Where can I buy your tokens now, what are your current contacts and how can I buy them and what are the benefits?

Bruce:

The OSWAP token is not in circulation yet. The IDO is slated towards the end of summer. Stay tuned for more updates!

Community Member:

The blockchain at its core is a distributed ledger. However, to provide more security, everything needs to be inspected by a third party. Have you done an audit or planning? What is your next step in enhancing users’ security and privacy?

Bruce:

Our contracts are under audit by CertiK and we also have a community who are providing internal peer reviews. The OpenSwap Liquidity Queues are powered by our Secure Adapter Protocol where the price adaptors are voted by decentralized governance to be added to the platform. These price adaptors also must meet a minimum security score provided by the CertiK Shield program and will be continuously scanned to ensure the adapter contract are not vulnerable to new exploits.

Community Member:

Nowadays So many Rug Pulls and exit scam happening. How users can trust your project and how you are different from others?

Bruce:

All our tokens are subject to a vesting period including our team tokens will be locked for a minimum of 6 months and vested linearly over 4 years. No rug pull will happen.

Community Member:
Do you have a Token Burning plan to increase Token value and attract investors to invest?

Bruce:

This is still under consideration and we still have to do some more research on this. As of late, there has been studies showing that the buy back and burn is equivalent to stock buyback which may just be too early for new projects. A more effective approach may be the buyback and make, meaning that tokens get bought back and distributed back to the community in the form of usage incentive programs such as farming, staking, and other usage campaigns. This would provide a longer sustainable future for projects.

Community Member:

Collaborations and partnerships are some of the most important cornerstones to help improve adoption. Could you please tell us about the current partners, plans for partnerships and what everybody stands to gain from these partnerships?

Bruce:

Our partnerships are primarily focused on other BUIDLers where we could co-integrate with, liquidity providers, and communities to help us extend our reach to enable no slippage and Inter-chain swaps for everyone. We are excited to have strong backers for our project who’s names we cannot disclose at this point in time. But for those hangman lovers, one starts with a “B” and another starts with an “C” 😉

BTSE:

Thanks Bruce for answering questions from the community!

On a final note, where do community members find future events at OpenSwap, and where can they find more information about the project?

Bruce:

It’s been a pleasure, lots of wonderful questions from the BTSE community!

The biggest event for OpenSwap in the near future would be our IDO, which we’re doing on the Impossible Finance Launchpad. We are currently targeting end of summer for our IDO. We will also be running a series of social media contests, airdrops, whitelisting campaigns, and promotional events during the timeframe leading up to the IDO, so be sure to follow us on socials, and stay tuned to our official announcements!

Docs: https://doc.openswap.xyz

Medium: https://openswapdex.medium.com/

Telegram: t.me/openswapdex

Twitter: https://twitter.com/openswapdex

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OpenSwap DEX

OpenSwap DEX

3.2K Followers

Integrated DeFi Hub designed for the decentralized landscape. Currently on Binance Smart Chain.