A new, fully decentralized cryptocurrency exchange is designed to solve several significant issues seen with legacy platforms — delivering an innovative trading model that is neither operated nor controlled by centralized intermediaries.
XSWAP has been built on top of ABEYCHAIN, and according to the ABEY Foundation, this is set to be the first of many DeFi-focused decentralized applications that will play a starring role in its ecosystem.
The blockchain is positioning itself as a compelling rival to the Ethereum network, which has been beset by high transaction fees and disappointingly low speeds.
XSWAP is fully compatible with ARC-20 tokens based on the ABEYCHAIN network, in addition to multiple cross-chain assets such as Bitcoin, Ether, Litecoin, Binance Coin and Polkadot.
One standout element of the decentralized exchange lies in how it aims to solve the liquidity problem that’s faced by many centralized exchanges today. Users are invited to become liquidity providers — with a decentralized userbase enabling them to pool their assets together to create a fund that executes all trades.
One of the most frustrating elements of centralized exchanges lies in how users that wish to buy a certain cryptocurrency need to wait for someone who is willing to sell. The opposite can also be true, meaning an investor has little choice but to watch a digital asset fall in value because they are unable to exit their position.
XSWAP’s introduction of an automated liquidity protocol means that a buyer or seller no longer has to wait for an opposite party to complete a trade. Instead, they can execute instantly at a known price as long as there is enough liquidity in the pool to make it happen.
Meanwhile, an automated market maker system is responsible for determining the price of all of the tokens supported by the platform. An algorithm adjusts prices based on supply and demand — increasing or decreasing depending on the ratio of how many coins are in a particular pool.
At the beating heart of XSWAP is the XT token, which is being distributed to users who participate in liquidity mining. It is set to be released to an array of other exchanges too, and the project claims that the first airdrop was completed in just four hours.
A powerful ecosystem
Those behind the project say that the creation of XSWAP was only made possible because of ABEYCHAIN 2.0, which incorporates delegated proof-of-stake as well as proof-of-work. Together, this enables transactions to take place at high volumes and high speeds, all without compromising security.
The latest figures suggest that ABEYCHAIN already boasts more than 100,000 users — in an environment that empowers developers to create robust DApps that are significantly faster and cheaper than those seen on Ethereum.
Looking ahead, the ABEY Foundation says that it is determined to continue innovating, all with a view to ensuring that a greater number of users can tap into XSWAP and its cutting-edge ecosystem.
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