wanOCEAN listed on Wanswap: Frequently Asked Questions
What is WanSwap?
WanSwap is a cross-chain AMM DEX, it shares a lot of traits with Uniswap but also offers some unique advantages. You can swap tokens from different chains in a truly decentralized way. In addition to that, WanSwap also has farming and staking possibilities. WanSwap is a community project that was started by some of the core members of the Wanchain community. Liquidity providers can earn WASP tokens by providing liquidity to the pools and staking their liquidity pool tokens in the farming section. WASP is our utility/governance token, it can be used for voting and can be used with other DApps on the Wanchain ecosystem.
How does Cross-chain work on Wanchain?
Because of the properties of Blockchains, it’s not possible to move assets from one chain to another. This would corrupt the chain and that would defeat the purpose of a blockchain in the first place. Wanchain has been building technology to make different blockchains interoperable by building bridges. To move an asset between chains the value and amount need to be taken off that chain, this is done by locking the asset in a smart contract, once the token is locked, it will be minted on the other chain in a wrapped version, this wrapped version is like a voucher which can be redeemed when the asset is moved back to the original chain. The wrapped asset gets burned and the original asset is released from the smart contract. How Wanchain manages to do this is explained in this article.
What can you do with WASP?
First of all, WASP is used for governance, WASP holders can use their WASP vote on proposals initiated by the community. You can also stake WASP in our hive and earn WAN in return, withdrawal is instant. It can be used as collateral in WanLend, Wanchain’s compounding DApp to earn interest or you can use it for providing liquidity on WASP pairings to earn more WASP, like the new wanOCEAN-WASP pair. On some pairings on WanSwap you can even earn dual farming rewards on our other DApp, ZooKeeper, where you use NFTs to boost your rewards.
I can trade OCEAN on UniSwap or other Ethereum DEX’s, why should I use WanSwap?
A simple answer for you: low gas fees and fast transactions. A normal TX on Ethereum can be quite expensive, taking the incentive to swap tokens away because it’s simply not viable to do it. Tokens on Wanchain don’t have this issue, a transaction costs 0.001$, and transactions are done in a couple of seconds. Paying 0.001$ or 80$, I’ll leave the choice up to you.
What other blockchains are integrated?
Currently, Wanchain has BTC, EOS, ETH, XRP and, BSC integrated. DOT will be integrated in May. On WanSwap you can trade: WAN, FNX, WASP, ZOO. wanEOS, wanBTC, wanXRP, wanETH and a number of wanERC20 tokens.
How can I wrap my OCEAN to wanOCEAN?
You can wrap your OCEAN by using the WanBridge on the Desktop wallet or in a browser with a wallet extension. A guide on how to do this can be found here. Please keep in mind that wrapping will cost you an ETH fee, this is simply because the first part of the process has to be done on the native chain. This will soon be a lot less when the new L2 solution launches on Wanchain. Read more about that here.
What is the APY for providing liquidity on the wanOCEAN pair?
The rewards will be 5X for the pair for 15 days, this means that a total of 66,890 will be divided over the liquidity providers, the amount you get depends on your share in the pool. After 15 days the rewards will be reduced to 1X for again 15 days.
Is there a lockup period for withdrawing liquidity?
There are no lockups on WanSwap, all assets can be withdrawn whenever you like.
Are there risks for providing liquidity?
Liquidity providers can be exposed to impermanent loss, although we prefer to call it opportunity cost since that is a better word for it. For more information on this please check this article or this video. The article uses UniSwap as an example but it’s similar on WanSwap, on WanSwap you need to add your earned WASP to the equation too.
Has WanSwap been audited?
At launch WanSwap was audited by Wanchain’s devs. We just finished an external audit done by Haechi, you can find that here.
Additional information
Price tracking: https://info.wanswap.finance/home
