What is Swaap Finance? Swaap Finance is the first protocol to introduce Market Neutral AMM Dex. Use the Oracle price feed to provide transaction prices to users. This method eliminates slippage and Impermanent Loss for liquidity providers.
So what is Swaap Finance? How does it work? Let’s find out in this article!
What is Swaap Finance?
Overview of Swaap Finance
Swaap Finance is the first protocol to introduce Market Neutral AMM Dex that is EVM compatible and built on Polygon. Use the Oracle price feed to provide transaction prices to users. This method eliminates slippage and Impermanent Loss for liquidity providers.
Matrix Market Maker (MMM) is a new market making model developed by Swaap. It is a market maker with a multi-asset, stochastic, asymmetric, oracle-powered constant geometric average product. Its function is to enable passive investment strategies with market-level performance.
Swaap uses Oracle Chainlink to calculate the average price of assets traded on the platform. Oracles are updated every 27 seconds on the network Polygonwhich allows Swaap to significantly reduce possible price differences on the platform and distribute this value to both LPs and traders.
To avoid potential errors or malicious attacks Swaap uses two mechanisms:
- If reserves are imbalanced by more than 2%, transactions are paused, which prevents over-mining in case of wrong data.
- If an oracle is not updated at the required time, trading will be interrupted on the platform for said asset.
The difference of Swaap Finance
- AMM uses Oracle price feeds to generate trading prices.
- Transactions are based on Oracle prices so there is no price slippage when trading.
- There is no Impermanent Loss, meaning the person adding liquidity and depositing as many assets will be able to withdraw the exact amount of deposited assets regardless of its value.
Swaap Finance’s operating mechanism
Participants on Swaap Finance:
- Liquidity Provider: Liquidity providers deposit 1 token or multiple tokens into a given liquidity pool. They take the market making risk and are rewarded with trading fees.
- Trader: The trader swaps assets within the pool for the desired asset and incurs a small transaction fee. This fee will be paid to liquidity providers.
- Arbitrage traders: An arbitrageur is someone who takes advantage of price differences between groups or centralized exchanges to make a profit.
When an asset in the Pool is much lower than the initial supply, transactions withdrawing that asset from the Pool will pay high fees, while transactions in the opposite direction for that asset will have reduced or no fees. costs money to create demand and help balance assets in the Pool.
Development Roadmap
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Core Team
David Bouba: Co-CEO & Founder
- In 2013, David graduated with a Bachelor’s degree in Mathematics from the University of Paris, then continued to successfully obtain a Master’s degree in Mathematics at PSL Research University in 2015. In addition, he also has a Master’s degree in machine learning. of École normale supérieure Paris-Saclay.
- In 2017, David was a Data Scientist at Zenly Inc, which was later acquired by Snap Inc for $300M.
- In 2019, David became Head of Research & Engineering at Unissey.
- Currently, David is Co-CEO & Founder of Swaap Labs, a project he and his colleagues founded in 2021.
Investors
April 19, 2023: Seed round successfully raised $4.5M led by Signature Ventures and investors
C² Ventures, New Form Capital, Kima Ventures, Pareto, Entrepreneur First.
Tokenomics
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Exchanges
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Information Channel of Swaap Finance
- Website: https://www.swaap.finance/
- Twitter: https://twitter.com/SwaapFinance
- Discord: https://t.co/o1RHKdbeu4
- Medium:
Summary
Swaap Finance brings a fresh model to AMM Dex, using Oracle to quote transactions. Helps traders find cheap prices, reduce slippage and liquidity providers without Impermanent Loss.
So I have clarified what Swaap Finance is? Swaap Finance cryptocurrency overview. Hope this article provides you with a lot of useful information!