Introducing WhaleSwap: The Next Generation DEX
WhaleSwap is a permissionless decentralized exchange (DEX) for every major chain. WhaleSwap users will be able to trade any token using state of the art tech enabling high speed, low cost, and low slippage transactions.
Why another DEX?
Despite the recent down trend there’s over 10 billion dollars currently locked in DEX’s. There’s plenty of demand!
The problem is, there’s plenty of issues too.
Which DEX do I use?
Which is the best for my chain?
Do I use a stable or volatile DEX?
How do I use it?
Where’s the best place to farm yield?
We’re solving all these problems for you.
By creating WhaleSwap we are bringing the best DEX technology of DeFi together into one seamless platform.
We’re not here to tell you everyone else is bad. In fact, they have done wonderful things and paved the way for us. Now we are here to tell you why we are the best.
With that out of the way, let’s get into the details!
Sure, we forked Uniswap. Who didn’t? The difference is we improved it and created a whole new platform.
Let’s break it down, we have:
Lazy & Fungible Liquidity
Create LP, get tokens.
No need to touch anything and you automatically accrue rewards from trading fees and have a fungible asset to prove your ownership over it all.
We took the concept of stable swaps from platforms like Curve and fully integrated it into a traditional DEX with a modified algorithm. What does this mean? It means we have fully community governed stable and volatile pools.
- Have lower fees
- Have lower slippage
- Have increased risk of impermanent loss
That last point might sound scary, but this is what encourages users to only use stable pools for stable assets. Wrapped tokens, stablecoins, anything where a pair will have a stable value makes sense to use a stable for since there’s almost no risk of impermanent loss.
The other points are related, due to the reduced risk they don’t require as much fees to incentive liquidity providers and allow users to trade cheaper too.
So, how much better is a stable pool for slippage? We did the math to help explain it. Keep in mind these tests assume a pair with a measly $10,000 liquidity on either side.
If you trade $1000 in a volatile pool, you will have 9.75% slippage and end up with $907.02.
If you trade $1000 in an identical stable pool, you will only have 0.09% slippage and end up with $999.10.
That’s over 108x less slippage and savings of nearly 10% on each trade! 🤤
Chained Swap Routing
Any swaps through WhaleSwap can be chained. Not enough liquidity in the pair you want? It will route through another pair to get you what you need automatically!
In fact, the chained routing is more efficient than ever before. We discovered there’s frequently trades where someone has one stable, wants a volatile token and it routes through another with more liquidity. For example with a path like USDT➡USDC➡ETH, it will use the low slippage of the stable pool on the way through and cut slippage exponentially.
Flash swaps are somewhere between flash loans and flash minting. It’s a forced swap just like Uniswap uses, there’s no collateral requirement to do it and as long as the pool has enough of the destination token it will work. You can think of it the same as flash loans but more efficient than both that and flash minting, as long as you want to do a swap as part of your strategy… which is the whole point of a DEX.
Hybrid Pool Arbitrage
There’s one more cool “feature” that I want to highlight. We actually came across this one by accident but in cases where both a volatile and stable pool exists, you can arbitrage the price difference between them with absolutely 0 risk.
If an opportunity like this exists it’s actually automatically picked up by our chained swap routing automatically! A simple trade (e.g. USDT➡BTC) will become USDT➡USDT➡BTC automatically claiming the profits for the lucky trader.
We are dedicated to serving everyone with a consistent, high value user experience no matter your blockchain preferences.
To deliver this, we are launching WhaleSwap on 10 (!!) chains from the beginning and expanding to more in the near future. If your favorite chain is excluded, please slide into our Discord and let us know.
The initial chains are going to be Ethereum, Optimism, Polygon, Arbitrum, BNB Chain (formerly BSC), Fantom, Avalanche, Aurora, Metis and Cronos.
WhaleSwap was designed to be the best. This also means having the best fee structure.
To facilitate this, the fee for stable swaps are 0.04%, 0.03% for LPs and 0.01% for the tokenomics.
Similarly, the fee for volatile pools is 0.25% total. 0.2% is given to LPs, 0.05% is contributed directly to our tokenomics for buybacks or similar.
WhaleSwap is launching on July 5th on BNB Chain and 6 other chains, although tokenomics will only be launched on BSC at first for providing liquidity incentives.
Once BSC liquidity has hit a suitable level, we will be rolling out the liquidity mining campaign on all the other chains on by one with weighted emissions.
Safe to say we are very excited about it all!
Our new chain tokenomics will be launched in the coming weeks, keep an eye out for a dedicated post!
We are creating a series of tutorials to help developers and users onboard to the DEX.
The current UI is great but there’s still plenty we have planned! From charts to a complete redesign we are making the experience as seamless as possible.
After the tokenomics are deployed cross-chain our next product will be lending, it’s been mentioned previously but keep an eye out. It’s already well under way!
We are also creating a no-code solution and if there’s demand, a bond marketplace to help other protocols raise their own liquidity.