WanSwap
Last updated
Last updated
WanSwap enables cheap, scalable, and truly trustless multi-chain asset trading
Wanswap is a new decentralized exchange built with automated market making (AMM) modeled after the explosively popular Uniswap, and built on Wanchain blockchain. It in addition to the standard swapping and liquidity providing features common to all AMM DEXes, WanSwap also features liquidity farming inspired by related projects such as Sushiswap. WanSwap takes full advantage of Wanchain’s cross-chain features in order to power trading between assets from multiple blockchains using Wanchain’s cross-chain wanTokens including: wanEOS, wanETH, a growing list of wanERC20 tokens, wanBTC and with more chains & assets soon to be added soon after the launch of Wanchain 5.0.
The basic trading functionality of WanSwap comes directly from the Uniswap codebase. Liquidity providers are incentivized for providing liquidity to trading pairs with rewards drawn from the fees paid by users swapping between the paired assets.
Similar to Sushiswap, WanSwap also features a “Farm” page which provides extra incentives for providing liquidity to certain trading pairs by rewarding liquidity providers with the platform token, the $WASP token for WanSwap.
With new AMM DEX and liquidity mining projects popping up almost every day now, you could be forgiven for thinking WanSwap is just one more in a long line of Uniswap / Sushiswap clones. However, WanSwap is much more than that. While its core functionality is very similar to those previously mentioned DEX WanSwap leverages the unique features of the Wanchain public blockchain to empower users with functionality that is impossible for any Ethereum based decentralized exchange to match:
Multi-chain Asset Trading With Trustless Native Chain Direct Withdrawal
Wanchain is one of the early pioneers of wrapped cross-chain asset technology, and currently supports Wanchain based wrapped versions of assets from a number of major public chains including BTC, ETH, a variety of ERC20 tokens, and EOS. All those assets may currently be swapped back and forth between Wanchain and their native chain using Wanchain’s cross-chain Storeman Node based bridges. The upcoming launch of Wanchain 5.0 brings a major update to the decentralization and security of Wanchain’s cross-chain bridges. After 5.0, Storeman bridge based cross-chain swaps will be truly trustless and decentralized. This allows WanSwap users to transfer assets from any Wanchain connected blockchain and trade them against each other on WanSwap. After trading is completed, assets may then be withdrawn from Wanchain trustlessly their original chain.
WanSwap will support wrapped versions of your favorite black chain assets, and will allow you to trade them and also withdraw them back to the original chain in a trustless way
This means that you could for example send your ETH over to Wanchain as wanETH, trade your wanETH for wanBTC on WanSwap, and then trustlessly withdraw your wanBTC to your own wallet address on Bitcoin using the Storeman bridge. You’ll never need put your faith in a centralized exchange again for moving value between chains!
Scalability and Price
The Wanchain blockchain operates using the Galaxy Consensus Proof of Stake mechanism in contrast with Ethereum’s current proof of work consensus mechanism — allowing for drastically cheaper and faster transactions. In contrast to Ethereum’s gas fees which can range from several dollars to dozens or even hundreds depending on the complexity of the transaction, Wanchain’s fees are typically less than a penny, and are hundreds of time cheaper than Ethereum in general. Not only are they cheaper, they are also far faster. Transactions are practically instant.
WanSwap’s cheap and rapid trading opens up a new world of use cases for WanSwap which are impossible to implement in a similar DEX on Ethereum. For example, automated trading strategies are economically viable on WanSwap, while the trading fees on Ethereum make them prohibitively expensive to do with Uniswap and other DEXes.
WanSwap was initiated by a small anonymous group of Wanchain core community members including experienced software developers, web developers, designers, marketers, and more. The team has come together to build WanSwap as a public utility for the Wanchain ecosystem and for the cryptocurrency community at large.
As a community built project, the majority of the work is done on a volunteer basis.
Early contributors to the WanSwap project will be rewarded for their contributions with a certain portion of the total $WASP tokens rewarded to liquidity providers. Besides the early contributor reward and the liquidity provider reward, there will be no other $WASP token issuance. There will be no token sale or equity offering of any kind associated with WanSwap.
WanSwap will launch with the following trading pairs:
wanBTC-WAN
wanETH-WAN
wanEOS-WAN
wanUSDT-WAN
wanUSDC-WAN
While anyone may issue a token on Wanchain and anyone may add any token pair they wish, the WanSwap team will provide a curated list of token pairs so that traders can be guaranteed the tokens they are trading ar legitimate. Only tokens on the curated list will be eligible to receive $WASP token incentives. In the future, the curation of the list will be managed by community governance.
$WASP total supply will be ~210 million.
There is no pre-mine, zero tokens will be reserved for team members, all tokens will be issued according to the rules written into the $WASP token contract.
The $WASP token is used for community governance of WanSwap in order to vote on determining transaction fee rates, change in rules, token issuance, funding for DAO initiatives, and more.
The tokens will be issued on a deflationary curve, with a decreasing amount being issued over time until the total supply approaches 210 million.
The $WASP produced in each block will be distributed to traders, liquidity providers and the DAO fund
Ten percent of all $WASP rewards will be sent to a DAO fund which will be distributed to early contributors during the early development stage, and which will be put under DAO control in the future. More details about $WASP tokenomics will be publish on the official WanSwap website. Details of the distribution to contributors will be published monthly on WanSwap’s website.
WanSwap is the answer to high gas fees, here are 10 reasons why you should launch your token on WanSwap in addition to Uniswap.
1. Reach a broader audience
Not everyone has a big amount of money to spend, small-time investors may be interested in your project, what keeps them from buying is the high gas fee they have to pay for the trade, making the investment not worth it for them. If you list your token on WanSwap the transaction cost will be less than 0.01$. Equity, this is what Crypto is all about! Why wait for L2 solutions when the solution is already there.
Trade on WanSwap
Trade on Uniswap
2. Listing is free
WanSwap does not require a listing fee, the only thing you need to do is provide the initial liquidity for the trading pair.
3. It’s Cross-Chain
Your tokens can be traded on several chains. If an investor does not hold ETH, they can trade for wanEOS, wanBTC, or WAN. More chains will be added soon. The tech is provided by Wanchain.
4. No KYC
Because WanSwap is an AMM DEX, no KYC is needed to trade on WanSwap.
5. It’s multiplatform
WanSwap is available on Desktop (Wanchain light wallet), browser (WanMask), iOS, and Android (Wanchain mobile wallet).
6. It’s fast
Up to 1000 tps!
7. It can add incentive for holding your tokens
Tokens can be added to farming. WanSwap provides its WASP token to investors that provide liquidity to voted in pairs. WASP is used for governance. The community will decide if your token is worthy!
8. It’s fully decentralized
A lot of projects claim they are decentralized but they actually aren’t (yet). WanSwap is truly decentralized!
9. It’s easy
The interface is intuitive to use. Documentation and video and all features are available if needed.
10. Integration with Wanchain DApp ecosystem
Possibilities to integrate your token in one of the other DApps in the Wanchain ecosystem.
And more to come soon!
Introduction to liquidity pools
When you supply liquidity to a WanSwap liquidity pool, you receive WSLP tokens in proportion to how much liquidity you supply to the pool. When a trade is facilitated by the pool a percentage of the fee is proportionally distributed amongst all the liquidity pools token holders. If you withdraw your assets from the pool, you will receive the earned fees but your tokens will be burned.
The liquidity pool token for WanSwap is WSLP, in WanSwap you can use your WSLP to withdraw your assets from the pool and it can be used for mining governance tokens: WASP.
Liquidity mechanics
I will explain the mechanics by using an example. Let’s say you want to provide liquidity in the WAN-wanUSDT pool. The way the pools work is you have to deposit an equal value of WAN and the token that you want to participate with, in this case, wanUSDT.
It’s advised to do some research when adding liquidity in the pool, always check if the value is like it should be. Enter the amount of one of the assets into the field, it calculates the equal amount in value of the other asset automatically. It’s important that the value is 50/50, you could change the amount but if you do this, somebody could arbitrage it and you could lose your funds.
Once you added liquidity to the pool and someone makes a swap on the pair, your liquidity will be tapped into. Based on the trade, your amount in the pool will shift towards more WAN or more wanUSDT. So if someone would have traded WAN for wanUSDC, your wanUSDC liquidity will shrink but your WAN liquidity will increase. It works like a scale, you should always come out to the same combined value as you put in.
The liquidity providers (LP)get a percentage of every trade that is made in the pool. It’s divided over every LP in the pool. The bigger the share you have in the pool, the larger the share of the reward you will receive. On WanSwap the transaction fee is 0.3%, 0.25% will go to the LP, and 0.05% will be used for WanSwap for buying back WASP tokens. For example: if your part in the liquidity pool is 3%, you will get 3% of the 0.25% fee.
For providing liquidity to the pool you will get WLSP tokens. The amount of tokens you get represents your share of the pool. When you withdraw from the pool these tokens will be burned.
Impermanent Loss
In essence, an impermanent loss is a temporary loss of funds occurring when providing liquidity. You can find a good guide about impermanent loss here.
Make sure you are aware of impermanent loss before you jump into providing liquidity!
Wanswap is a decentralized exchange with automated market making (AMM) modeled after Uniswap & Sushiswap. WanSwap is built on the Wanchain blockchain and takes advantage of its cross-chain features to enable multi-chain asset trading with trustless native chain withdrawal.
