This year, we plan to implement a number of improvements aimed at incentivizing liquidity providers and significantly boosting the project’s liquidity.
Launched on November 6, 2020, Swop.fi now features 8 liquidity pools for instant exchange of the most popular cryptocurrencies on the Waves blockchain.
The project has attracted more than $3.5 million in liquidity, and the weekly trade volume stands at about $4 million. Neutrino-based tokens held in the pools are automatically staked to increase liquidity providers’ income.
In 2021, Swop.fi will see a range of improvements, focused on incentivizing liquidity providers and substantially boosting liquidity.
SWOP token and governance
The long-awaited launch of the SWOP token is expected within a month. The early-bird SWOP reward of 1 million SWOP tokens will be distributed among liquidity providers contributing to the pools before the launch.
The early-bird reward will be vested gradually, within a year of the token launch. Simultaneously, the distribution of the annual SWOP reward will begin. Current liquidity providers will be able to earn SWOP by staking their share tokens to the SWOP-mining smart contract. Within a year of the token launch, another 1 million SWOP tokens will be distributed among them.
In your personal account, you will see how many SWOP tokens you are entitled to, how many of them are available at the moment and how many you have already claimed. The number of available SWOPs increases with each new block created on the blockchain. Upon claiming SWOPs, you will receive the tokens to your account. Subsequently, you can swap them, invest in the SWOP-USDN pool or stake to the governance smart contract.
With governance, you can increase your yield. SWOP staking will generate an income in SWOP tokens. Furthermore, every week, you will be able to vote for distributing the annual SWOP reward between Swop.fi pools. The SWOP reward intended for liquidity providers will be divided between the pools in proportion to the number of votes cast for them. Subsequently, the voting scope will expand.
Governance fees (currently set at 40% of accumulated swap fees) collected since the launch of the project, will be converted into USDN and added to the SWOP-USDN pool, thus increasing the SWOP price. Governance fees collected after the SWOP token launch will be regularly added to the pool.
We strive to utilize the pools’ liquidity and offer liquidity providers not only swap fees but also staking rewards. We plan to implement WAVES leasing, as well as the staking of Neutrino assets for newly created pools.
The next big thing will be an opportunity to launch your own pools. This will be the easiest way to make a market for your token, as there will be no hassle of creating orders on the exchange, and no special skills will be required.
With just a couple of clicks, you will be able to add, for instance, pools of your token in a pair with popular cryptocurrencies, such as WAVES, USDN or BTC. All you need is to have tokens to deposit. Once created, the pools will work by themselves.
Once the basic Swop.fi functionality is ready, we are going to deploy an API that provides data for our markets, such as liquidity, volumes, prices, etc. This data can be used in various ways, including the representation of our project on DappRadar, CoinMarketCap and CoinGecko.
The highest point of our plan for 2021 is inter-chain integration: we’ll offer the ability to add and remove liquidity directly from accounts on other blockchains. Interaction between a user’s account and the Swop.fi smart contract will be done via gateways based on the Gravity inter-chain communication protocol. This feature will turn Swop.fi into a service with mainstream appeal.