Summary: Swop.fi AMA on Waves Africa Community
First, I am developer advocate in Waves Association. already for 2 years. so my mission is to present the products from Waves Ecosystem
I’m also the head of membership working group in Waves Association and author of Certificado.one
Today I’m presenting swop.fi as one of the most impactful products in Waves Ecosystem for now
Big pleasure to be here!! I love Waves community and appreciate this opportunity for close communications 🙂
Q: Let’s start with this question
As I know that http://Swop.fi is an instant crypto exchange operating on the AMM (automatic market maker) model. So what is the difference between trading with Order Book and AMM? Which is more advisable to avoid the high costs of ethereum network commissions?
Will be happy to answer questions about SWOP.fi that you have but first I can introduce it
Swop — is the AMM-exchange on Waves protocol that combines different market-making formulas (Uniswap + Curve)
The most trended topic for SWOP if that the team launched the governance token ($SWOP) couple of weeks ago and it’s going pretty well: TVL and the number of users are rapidly growing.
Ans: So, the key advantage of AMM-exchanges is that using them you can trade even on low-liquidity pairs for a pretty fair price. Moreover, you don’t need to wait for someone to put the offer — the price is counted by smart contract automatically.
That’s why I think SWOP is a great step for Waves Ecosystem — it’s a huge alternative exchange, people do not need to always use Waves.Exchange or other p2p exchange
Answering on the second part of question, I would like to say that transactions on Waves are both cheap: for AMM and OrderBook exchanges: maximum $0.10–0.50
Q: Do you know Pancake Swap just flipped Uniswap to be the top 1 DEX in terms of volume? So can we see Swop.fi in top positions like that one day? What will be the decisive factors that Swop.fi should achieve to be on top?
Ans: And yes, I see SWOP as the top-1 AMM-exchange
For me, Pancake Swap success is a good sign: people are ready to move from Ethereum network to alternatives that are cheaper and easier to use
Waves provide exactly these features, and Swop uses them well: commissions are 50 times lower than on ETH, UX is insane — you can use AMM-exchange from a mobile device. Doesn't it look like a magical UX?
Q: Can you explain to me how the program Early Bird works? If I join Swop.fi platform right now, can I still have a reward from that program?
Ans: So, to earn with Swop the team opens liquidity providing functionality to everyone. Investors can choose one of the pools https://swop.fi/info and add their tokens to the pool.
Q: What are the benefits of providing liquidity?
Ans: there are three points where APYs come from:
- assets staking
- SWOP rewards
for example, for providing liquidity to NSBT/USDN pool you get triple profit
- you get a part of the fees that traders pay
- you get rewards for staking your NSBT and USDN (both from 10% APY)
- you get a SWOP bonus
Q: 5. Can you explain to me how the program Early Bird works? If I join Swop.fi platform right now, can I still have a reward from that program?
Ans: the team launched the SWOP token as a governance token. A maximum of 6mln will be available. but this year we will see only 2mln
the team distributed the first 1mln to the early birds (the program is already over)
and one more million will be distributed to the liquidity providers this year
so, you are late for a program, but the bonus is still big enough
Q: 40% of proceeds from swap fees in swop.fi pools is used for buying SWOP tokens from the SWOP-USDN pool, Can you explain more about this?
Ans: Vladimir Zhuravlev:
I’m far from trading and investments, but I really like how the team designed monetary policy
a short disclaimer: I wouldn’t give any financial advice here, I can describe the monetary policy of SWOP which looks really logic
Q: What is SWOP used for?
1. voting on Swop updates (new trading pools, pools weights, ..etc)
2. farming (you can stake your SWOPs).
for each exchange on Swop.fi there is a fee, 40% of it is called “governance fee”
this money value is used to buy SWOP tokens back from the pool and distribute to SWOP farmers
so, this buy pressure keeps the system stable and staking attractive.
only the time will show the result of this model, but I like this experiment
Q: Are there plans to integrate with other Blockchain assets aside from the ones listed on Waves.exchange?
Ans: To answer shortly: YES
and that’s the key to adoption
let me explain
in my opinion, the key problem for the crypto community is that we remain diversified
Ethereans close their eyes on high fees, while BSC and Waves doesn't get as much traction
I believe in the goal to make all the communities united
When we will have all the ERC-20 assets on Swop with cheap commissions, could you imagine how helpful it will be?
It will make ETH users move to Swop, and Waves users will have simple access to ERC-20 assets
Q: What do we need for this amazing happy end?
- blockchain agnostic bridges
- strong DeFi
this will allow Cross-Chain DeFi
The first thing is implemented in Gravity protocol.
The second ones is Neutrino and SWOP.
Q: Impermanent loss is an LPs worst nightmare, how does swop.fi solve this problem?
Ans: SWOP.fi provides different liquidity pools, so I guess the best solution for investors is diversifying their pools. Also, you can choose pools with stable assets, like USDTLP/USDN
Q: Swop as a token, I believe it’ll be possible to stake it. Will it be a dual LP or staking it alone, which I think might eliminate the whole need of having pairs within LP.
Ans: There is a SWOP/USDN pool, currently the thing on Swop with the highest APY: 200%+. It combines SWOP farming, USDN staking and governance fees
Q: Can you tell us the SWOP road map for the year 2021?
Ans: I can tell the plans for the shortest period of time
there are now two things under development:
- custom pools
- more governance features for SWOP: for example, voting on pool weight
for me, the main key goal for swop.fi in the next 2021 year is marketing and adoption. that’s why I really appreciate activities like this AMA
Q: When can WART be listed on swop?
Ans: in the next couple of months there will be a custom pools opportunity
Q: If there is a message you will want to pass on to the Africa waves community at this time, what will it be?
Ans: I would like to wish all of you to enjoy this crazy bull time. we are living the history. that’s insane! but my message would be to always look deeper, beside the numbers. you need to analyze the tech before investing. because even crypto there is a rule that always works “product first — prize comes from it”
I would like to wish all of you to enjoy this crazy bull time. we are living the history. that’s insane! but my message would be to always look deeper, beside the numbers. you need to analyze the tech before investing. because even crypto there is a rule that always works “product first — prize comes from it”
take care of yourself and have fun!
thank you for your time, guys 🙂
I appreciate how you guys were attracted to this AMA. thanks for so many questions. love you, Community!