OpenSwap Troll Talks: Chapter #2 — Restricted Group Queues
In last week’s Troll Talks, we talked about what OpenSwap ‘Liquidity Queues’ are, and how ‘Spot Price Queues’ can enable DeFi users to execute swaps at zero slippage while mitigating possibilities of impermanent loss.
While ‘Spot Priority Queues’ and ‘Spot Range Queues’ are indeed amazeballs features that are unique and effective in protecting DeFi traders from losses incurred from swaps, these queues are only effective in protecting users if the tokens they are swapping into are not zero value tokens.
Since the Summer of DeFi in 2020, we have seen an increasing number of new projects across different chains, raising crazy amounts of funds and hitting over-subs we thought were only achievable by the Gods. Unfortunately, it is also not uncommon that these godsend projects are ultimately mass graves dug by crooks and masked by rugs woven with false promises of profits and token utilities, aimed at stealing from investors.
At OpenSwap, we hate getting rugged, we hate seeing people get rugged, and we spit on rugpull projects for destroying this beautiful DeFi universe that we all live in. As stakeholders of the DeFi space, the OpenSwap team aims to do our part for the community and help eliminate (or at least curb) this unwanted surge in scam projects, and we do so by introducing our second type of liquidity queue — the Restricted Group Queue.
🤔 What is ‘Restricted Group Queue’?
OpenSwap Restricted Group Queue (or ‘Group Queue’ in short) will be the second category of liquidity queues our team will introduce to the market shortly after the launch of Spot Price Queues. Group Queues will enable liquidity providers to offer tokens at a specific price that can only be accessed by a defined group of user addresses.
Group Queues have a few key features that can be used by project owners for different purposes:
- Group Whitelisting — Making liquidity only available for defined addresses to swap against.
- Liquidity Allocation — Trade size allocations can be defined for all or specific members of the group.
- Defined Validity Period — Restricting liquidity to only be available for the defined duration.
- Restricted Withdrawal Options — An option to lock liquidity in the queue to demonstrate that the liquidity is ‘committed’ and cannot be withdrawn unless there were no takers during the validity period.
These are just some of the early key features of Restricted Group Queues, but it already opens the door to a number of important unique-to-DeFi use cases, and the team will continue to work on creating more utilities.
How does ‘Restricted Group Queues’ Protect Users from RugPulls💩?
OpenSwap’s Group Queues can be deemed as a rugpull repellent because this feature can enable price assurance for IDO token launches. New projects can use OpenSwap’s group queues to whitelist their initial IDO participants along with a specific allocation so that they can offer a ‘token buy-back’ for a specific period of time to provide their IDO participants with a type of price assurance.
For example, if a project IDO’s their token at 1 USDT, they may create a group queue that will buy back the tokens at 0.75 USDT for a period of time in the future to provide their support with the comfort to back the project. This liquidity would be locked on-chain, and transparent to the community as proof of ‘price assurance’.
Ultimately, we envision OpenSwap Restricted Group Queue as a feature that will help set a ‘Safety Standard’ for the future IDO space. Ideal for investors and IDO participants who want to guarantee that the projects they are backing are not scams.
Furthermore, liquidity providers or traders can elect to offer certain assets at a specific price, but only for a targeted group of counterparties. This can be done using group queues. In this scenario, the liquidity provider will have the option of not restricting withdrawal. This use case is ideal for projects who want to offer a flash sale of their tokens to a group of VIP investors!
So… How does it work 💻 ?
Restricted Group Queues are based on the liquidity queue architecture with additional features and capabilities on the contract governing the liquidity queues. Similar to Spot Price Queues, each new queue pair needs to be voted into place through the OpenSwap governance process. After the queue is voted into place, liquidity providers can define their own ‘queues’ within the queue pair.
Troll Thoughts 💭
So yeah, the DeFi space is a wild west environment where anything goes, crypto existing solely online in an all-digital world, and existing outside of the normal realm of finance will continue to attract scam projects and crooks to take advantage of its decentralized nature for their own greed.
OpenSwap will continue to curb these negative trends through introducing revolutionary technology such as Restricted Group Queues. Be sure to check in on next week’s Troll Talks series for more exciting technology and community updates!!
Learn More About OpenSwap
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.