Kiswap: DEX and liquid mining application based on OKChain
Friends who have used DEX trading will definitely see such a phenomenon. Under the AMM mechanism, when the liquidity provided by the LP is insufficient, the transaction will have a larger slippage. However, the swaps on various DEXs are scattered. These liquidity, so in order to solve the problem of high slippage and cumbersome operation, DEX aggregator came into being.
Kiswap is a DEX aggregator based on OKChain. If UniSwap is the "dark horse" of the DeFi ecosystem in 2020, then Kiswap is the "dark horse" on the DEX track in 2021.
What is Kiswap?
Kiswap is a new generation of decentralized exchange (DEX) built on the basis of automated market making (AMM). Kiswap came into being with the leading benchmark set by the star project Uniswap in the industry. In addition to the token exchange function and liquidity provision function that any Swap DEX has, Kiswap is also inspired by SushiSwap and other related projects, and has the function of liquidity mining. Kiswap makes full use of cross-chain features to enable cross-chain assets to be traded on the Kiswap blockchain. These cross-chain assets include EOS, ETH, BTC, a series of tokens, and subsequent native tokens and ecological tokens on other public chains.
The basic trading functions of Kiswap come directly from the major Swap code bases. Liquidity providers provide liquidity for trading pairs and get rewards from users' token transaction fees.
Similar to Sushiswap, Kiswap has launched a "Farm" function, which distributes additional tokens to liquidity providers for designated transaction pairs to reward KIS, which is Kiswap's platform currency.
The market is enthusiastic and the valuation is high. What value does Kiswap bring to the DEX ecosystem?
When we perform Swap operations on the ETH chain on Kiswap, Kiswap, which aggregates the liquidity of multiple DEX platforms, will automatically help you figure out how to complete this transaction with the best price and the lowest slippage path.
That is, when you submit a transaction, its backend may split the order into multiple transactions, for example, 60% is completed through Uniswap, and the remaining 40% is completed through Sushiswap. And when the aggregator finds that the trading pair selected by the user has insufficient liquidity in most DEXs, it is possible to complete the transaction through a bridge transaction.
For the DeFi industry, Kiswap also said that it helped solve an industry-wide problem: non-permanent loss, which is the problem of free loss . As we all know, the gratuitous loss of participating in AMM liquidity mining is difficult to avoid. High slippage creates an opportunity for arbitrage traders to make up for the difference by conducting reverse transactions.
Kiswap tries to make LP get more profit through the concept of virtual balance, that is, when there is a high slippage transaction, it is executed at the old price first, and then the price is gradually updated to the true value according to the pool balance within 5 minutes. Fees account for a higher percentage of traders’ profits, so arbitrageurs return most of the fall in prices to the pool of funds.
Compared with a large number of homogeneous swap projects that have come out, how does Kiswap outperform others?
Since the beginning of this year, new cloned swap projects have been born almost every day. Because of this, you might think that Kiswap is just an ordinary member of the swap project.
In the eyes of the author, Kiswap must be the best among all the projects. The core function of Kiswap is similar to many swap projects, but the bottom layer of Kiswap uses a unique cross-chain mechanism. The blessing of this feature makes Kiswap better than any swap developed based on Ethereum.
Decentralized cross-chain transactions between assets on different chains
With the help of blockchain cross-chain technology, Kiswap has mapped out a large number of native currencies and ecological tokens of mainstream public chains, including BTC, ETH, EOS and ERC20 tokens. These assets can be conveniently crossed between Kiswap and their respective public chains through a cross-chain bridge based on the Kiswap cross-chain node group. Since the update of Kiswap, this cross-chain mechanism has been greatly improved in terms of convenience, security and decentralization.
Kiswap uses blockchain cross-chain technology to map out a large number of mainstream public chain native currencies and ecological tokens, including BTC, ETH, EOS as the link, any public chain that has been cross-chain integrated with Kiswap, chain and chain Both native coins and ecological tokens can be cross-chain transactions through Kiswap. When the cross-chain transaction is completed, users can easily cross the tokens back to the original chain in a decentralized manner.
For example, you transfer your ETH to Kiswap through KISBridge Web to become kISETH; through Kiswap, convert kisETH to kisBTC, and then use kisBridge Web to transfer kisBTC to your Bitcoin network wallet. This entire process is completely decentralized. Therefore, you will completely get rid of the shackles of currency exchange through centralized exchanges.
High performance and low cost
The DEX on the Ethereum chain such as UniSwap and SushiSwap uses ETH as a miner fee. With the increasing number of Dapps on the Ethereum chain, the problem of low Ethereum TPS has been exposed, and high gas fees will follow. Even when the gas fee is relatively low now, a 0.1 ETH swap on UniSwap still costs RMB 50-100. Kiswap uses OKT to settle transaction fees, and the transaction fee rate is only 0.3%.
Not only the transaction fee is very cheap, but the transaction experience is also very smooth. Recently, when using UniSwap to perform swap operations, it takes more than 20 seconds for the market to confirm the transaction, and users can only wait for the transaction status "Pending" to "Confirm".
When using Kiswap for swap, it only takes 3-5 seconds to complete, and the time for processing transactions is greatly shortened. Presumably this is one of the reasons why everyone chooses to use Kiswap. Whether an exchange can carry a large number of users depends on the depth. The so-called depth is the size of the capital amount of the trading pending orders during the matching transaction. The greater the depth, the smaller the impact of buying and selling pending orders on the price.
The trading depth of Kiswap is 60,00 ETH (approximately 7.8 million US dollars), which ensures that even if there is a large order to buy or sell in a short period of time, it will not have much impact on the price.
Kiswap's fast transaction speed and low transaction fees have undoubtedly opened up a new world for Kiswap, creating a picture that cannot be achieved in the Ethereum swap world. For example, the automated market-making strategy is economically feasible on Kiswap, while the market-making strategy can only be sighed on the Ethereum network with high gas fees.
Write at the end
The progress of DeFi is very fast, so fast that many people can't keep up with the basic rhythm. In 2020, we ushered in UniSwap, the dark horse of DeFi. In 2021, Kiswap brings the extremely tempting "God Mine" and silky "experience", and also brings unique innovative mechanisms, making it a true DEX track. Dark horse.
In the future roadmap of Kiswap, it is not limited to one public chain of OKChain. Kiswap will deploy multi-chain, link multi-chain assets, and bring better DEX experience and more sustainable liquidity incentive cycle to each mainstream public chain. Mechanism to strengthen the community. Kiswap not only has the ability to directly compete with the Ethereum DEX leader UniSwap, but its goal is to become the DEX king in the future blockchain ecosystem.