A decentralized trading platform, has no pre-mining, no financing, and is open to institutions and individuals on an equal footing.
In 2020, Ethereum’s DeFi ecosystem saw exponential growth and DEX (decentralized exchange) boomed. Against this backdrop, aelf officially launched AESwap, a decentralized trading platform.
AESwap is a smart contract protocol based on the aelf network, which adopts the constant product market maker (CPMM) model. No need for pre-mining and financing is a distinct feature of the project. Once it goes live, the product will offer free access to users around the world and help all people to participate in the open financial market. The follow-up funds will be managed by the aelf DAO Management Committee to ensure the project runs securely and efficiently.
AESwap is the first DeFi project based on the aelf network, with complete DeFi supporting infrastructure, including cross-chain assets, interoperability solutions, stablecoin, etc. AESwap aims to be the world’s leading automatic trading platform and offer a more efficient, convenient, and secure DeFi product than Uniswap. The mobile version of AESwap integrates the templates of aelf account management, which makes it easier to learn and get started and is more user-friendly.
The mobile version of AESwap (Closed Beta) has completed phase 1 of feature development and will be available for public testing soon. The desktop version is still under development. AESwap Phase 1 mainly provides two major features, one is that market makers make money by adding liquidity to trading pairs and they can also create trading pairs. The other is that token holders can exchange one token for another token by paying a 0.3% transaction fee, which will be used as the market makers’ commission. The protocol does not charge any commission.
Performance: Low transaction fee, fast trading without delay
Security: Self-developed based on the aelf network, High Security
User-friendly: Ease of use, available on both mobile and desktop
Profit: Achieve asset interoperability with adequate liquidity
At present, compared with many DEX, the biggest advantage of AESwap is “Transaction Speed”. Although Ethereum currently has the most popular DeFi ecosystem, it cannot handle high transaction throughput and fully support the expanding DeFi ecosystem until the Ethereum network adds layer 2 or upgrades to 2.0.
The underlying public chain of AESwap is the aelf network, so there will be no network congestion. Aelf adopts the main-side chain structure, which uses one chain for one specific scenario and thus can truly realize resource isolation, ensure transaction efficiency, and avoid high gas fees. At the same time, under the premise of the main chain security, the side-chain and the main-chain can share security. Moreover, AESwap is independently developed by the aelf team, and its security is guaranteed. Recently, YAM’s collapse due to the existence of loopholes in the smart contract has caused a great stir, so contract security is also very important.
AESwap liquidity pool uses a constant product market maker model to execute transactions, abandons the concept of limit order book, and can automatically adjust the exchange rate according to the available liquidity. Therefore, it can achieve fast trading and ensure the persistence of capital flow. Constant product can be regarded as an inverse proportional function x * y = K. No matter how x and y change, K is always a constant value. In AESwap transactions, the product of the tokens’ number in the liquidity pool is constant before and after a transaction, that is, the product before the purchase = the product after the purchase.
Because Ethereum platform has issued the largest number of cryptocurrency assets, the exchange’s value would be significantly reduced if it could not access these assets and the original ETH. aelf also takes this into account, so it will provide a set of interoperability solutions with other public chains’ tokens. AESwap will support the migration of Ethereum token. By reducing the cost of user migration, users can easily migrate to the aelf platform by using Ethereum token instead of purchasing or exchanging other aelf tokens to ensure sufficient liquidity and reduce the risk.
As the infrastructure of aelf ecosystem, AESwap is the basic tool to realize token trading. In the future, aelf will lay out other derivatives applications based on AESwap, form a stable financial system, and promote the prosperity of other APP and related token. In addition, AESwap can also be connected with other APP on aelf DeFi ecosystem to promote each other. In the future, the aelf will launch the AESwap public testing. Please stay tuned!