Sep 9, 2021
OpenSwap: The Troll Talks Series — Chapter ZERO
Okay, so we had an awesome IDO, with a record-breaking committed staked capital on the Impossible Launchpad, blah blah blah. Now, what’s next?
The core team at OpenSwap has been quietly monitoring the conversation that goes on in the Official Community Group on Telegram, and we have come to the realization that many of our supporters have almost ZERO knowledge of what OpenSwap is really about. As such, we have decided to create and kickstart The Troll Talks series on our Medium, a weekly journal aimed to help community members get familiar with the OpenSwap project from perspectives like technology, trading, partnerships, marketing, token utility, and more… So if you are interested in or wish to learn more about OpenSwap, following this series would be the most perfect zero-effort way in doing so. Let’s start!
It Starts with ZERO
As discussed in Bruce’s pre-IDO AMA series, the germination story of the OpenSwap project began during the Summer of DeFi in 2020, when Uniswap gained popularity with its AMM liquidity pools. We wanted to address the two primary issues at the time: Slippage, and Impermanent Loss. Our idea was to provide on-chain spot market-priced, ZERO slippage swaps in the form of our Liquidity Queues.
We believe that users should have the choice and freedom to swap with any liquidity source, instead of competing for liquidity with other AMM DEXs, we want to support them and let users make informed decisions on the optimal swap for their situation. OpenSwap Liquidity Queues can provide spot-market priced swaps at ZERO slippage, offering users a reference price to compare with other sources.
So What are ‘Liquidity Queues’?
On-chain trades have grown exponentially since the introduction of AMM (Automated Market Maker) based DEXs due to the ease of listing new trading pairs and a straight-up pricing mechanism. However, it is far from perfect due to ‘impermanent loss’ and a lack of control for market makers (liquidity providers), high transaction fees, and price slippage for market takers.
Rather than simply refining the current AMM formulas, the OpenSwap team decided to go with a fresh approach that removes the ‘one-size-fits-all’ approach of current conventional DEXs. OpenSwap is introducing trading through newly purpose-defined Liquidity Queues that will benefit both Market Makers (LPs) and Market Takers (most of you guys, i.e. Retail Swappers).
An easy way to understand this ‘Liquidity Queue’ concept would be to think of it as checkout lines at your local grocery store. Imagine if each line is optimized and designed for a particular way of making purchases. For example, Line A would be an ‘Express Checkout’ line that would be super fast, but you are limited to only 5 items or less, Line B is a self-check-out line, and Line C is an ‘Express Checkout’ for bulk products, and Line D is ‘Cash Only’… Similarly, Liquidity Queues all lead to a swap trade, but each type of Liquidity Queue will be optimized and designed for a different use case!
At the core of all ‘DEX swaps’ is the pricing mechanism. AMM DEX’s base pricing from a predefined constant product formula (i.e. x*y=k) and arbitrage traders are incentivized to trade off the pool to keep it pegged to market prices. Although such a mechanism will reflect market pricing, this method only works for small size swaps due to the inherent slippage in the mechanism.
As mentioned above, instead of a single pricing mechanism, OpenSwap believes that pricing should, in fact, be based on and designed for different use-cases. And to make this happen, OpenSwap will introduce the concept of ‘Liquidity Queues’. Our team will initially offer Liquidity Queues categorized into a few broad categories, each based on a different pricing mechanism.
- Spot Price Queues: Swaps will always occur based on Oracle-based market prices
- Restricted Group Queues: Specially priced swaps that are restricted to a specific (whitelisted) group of users
- Pegged Queues: Assets will always be priced based on a fixed ratio to another asset
- Limit Offer Queue: Assets will be priced based on the Market Makers offer
For Market Takers, by using OpenSwap, they will benefit from the opportunity to carry out swaps at the lowest costs and best prices. And for Market Makers, OpenSwap Liquidity Queues will open up the door to control over how to deploy and gain through their liquidity in ways (as of yet) unavailable in the DeFi space.
Expected Features Rollout (Q3 — Q4 2021)
As mentioned previously, technology rollout is the most important aspect to giving this project value and subsequently giving sustainable utility to the $OSWAP for the ecosystem.
Regarding immediate targets, in the next couple of weeks, we will be rolling out the following technologies on the OpenSwap platform:
- TrustWallet Setup
- Release of OpenSwap Hybrid Smart Router
- Release of OpenSwap Spot Priority Queue
- Release of OpenSwap Restricted Group Queue
We are also actively brewing potential partnerships with different stakeholders in the DeFi space, currently already in advanced discussions with:
- Top tier Liquidity Providers who will be using our Spot Price Queues and Hybrid Smart Router to achieve greater control and gains on their market-making activities!
- Top tier IDO launchpads who will be using our Restricted Group Queues to provide their launchpad projects opportunities to offer on-chain guarantee buy-back to their investors!
- Other token projects will be using our Restricted Group Queues to offer flash sales to their community members!
In the coming months, we will be announcing and releasing more news about our potential partnerships with all these top-tier key players in the DeFi space, so stay tuned and be sure to follow us on social media!
In next week’s Troll Talk series, we will be taking a deeper dive into the technology involved with Spot Price Queues, as well as the real-life use-cases for this category’s sub-queues: Spot Priority Queues, and Spot Range Queues, who and how will this type of Liquidity Queue benefits.
So remember to check in on our Medium next week to get spoon-fed this valuable knowledge you bunch of lazy greedy trolls!
Learn More About OpenSwap
For those who are interested to obtain $OSWAP or wish to learn more on how OSWAP tokens can be earned, please explore the following link: https://www.openswap.xyz/#/earn
We encourage community members to partake in community discussions to help better shape OSWAP Tokenomics and help generate more utility ideas. Users may express their ideas to core team members through joining the OpenSwap telegram group: https://t.me/openswapdex
More information about OSWAP tokens will be shared with the community as the project continues to develop. In the meanwhile, please feel free to follow us on Twitter to receive the latest news and updates from OpenSwap.
Website: https://www.openswap.xyz/
Docs: https://doc.openswap.xyz/
Swap: https://www.openswap.xyz/#/swap
Discord: https://discord.com/invite/BcaC3fSGcB
Twitter: https://twitter.com/openswapdex/
Medium: https://openswapdex.medium.com/
Coinmarketcap: https://coinmarketcap.com/currencies/openswap/ico/
Youtube: https://www.youtube.com/channel/UCwy3G03-u7Ke4yvB_-ehC1Q
