Sweep can simplify your swapping
The new tagline promises “one coin to save, bridge and swap.” Instead of wasting your time on games and points, we want to make your life easier.
Users get one coin to:
- Swap through direct routes on many AMMs
- Earn interest when they are not trading
- Move to any participating chain with mint/burn bridging
LPs also get a good deal. Sweep invisibly boosts yield for LP positions when the dollar side of the pool is held in SWEEP. A SWEEP/your-coin pool will make about 3% more for LPs than a USDC/your-coin pool. SWEEP is a non-rebasing coin that can fit into any AMM pool.
Next steps for AMM placement
Over the next month, we will expand AMM placement. Here is the master plan.
Build swap routes
We are putting SWEEP/USDx into pools on Balancer, Curve, Uniswap, PancakeSwap, BaseSwap, and other AMMs. Users will swap SWEEP through efficient “routes” from these AMMs, and from aggregators. We will be strategic about building up one or two major pools on each chain. And, we will bring this liquidity to new chains.
New tech for Uniswap, PancakeSwap, and “concentrated liquidity” AMMs
Uniswap and its “concentrated liquidity” descendents handle more than half of AMM trading volume. The Sweep/USDx pair has a crawling price that does not fit naturally into these AMMs. To move the price, traders have to buy all of the positions between the old price and the new price, and LPs have to shift their liquidity.
New contracts automate this process. They place three types of positions:
- Trade. This places USDx and SWEEP for sale around the current target price
- Redeem. This places USDC for sale at the lower bound of the target price.
- Inject liquidity! The marketmaker mints SWEEP and places it for sale at slightly above the target price. Financially, this sweep is minted, but it is not sold, so it’s not yet a liability that requires capital and incurs interest expense. A marketmaker with limited capital can make large amounts of SWEEP available for new offers. We have big plans to pull liquidity into new offers. Watch this space.
Replace plain old USD with SWEEP
Billions of dollars of stablecoins are sitting on the dollar side of AMM pools. That costs money for LPs. We’re proposing to swap those plain boring dollars out for SWEEP. Then, LPs will make more money, liquidity will flow easily to new L2s and appchains, and users will get even better routes. We will partner strategically, pool by pool, with AMMs, volatile coins, and LPs to make this happen.
Grow SWEEP pools with LP rewards
LPs will expand the amount of SWEEP they hold in AMM pools, if we offer them yield-boosting token rewards. Sweep Protocol has created “gauges” as the first step to apply for Curve and Balancer rewards. We’re using multi-chain capabilities to support other AMMs and blockchains that offer rewards. And, we’re lining up an allocation of SWEEPR tokens.
Do people want to swap interest-bearing coins?
Saving and swapping with one coin has financial and lifestyle benefits. HOWEVER, users do not tend to swap with interest bearing tokens. The amount of stETH and sDAI in swaps and AMM pools is substantially less than the amount of plain ETH and USDT. Is there a deep reason for this?
What do you think? Do you want to swap with an interest-bearing coin? Why, or why not?
