Decentralized exchanges have gained significant traction amidst revived interest in blockchain technology overall. Users are entrusting billions of dollars with decentralized exchanges, ushering in a new era of finance driven by the so-called decentralized finance (Defi) industry.
Decentralized exchanges exhibit key improvements over traditional exchanges, such as decentralization, automation, and continuous liquidity.
DeFi and blockchain technology are still the new kids on the financial block. Every day is a test of the technology’s validity. Proponents argue that DeFi implementations have only just begun to reach their full potential. They expect this new wave of innovation and entrepreneurship to move quickly, as was the case for the blockchain use cases which came before it.
In an example of the fast-paced world of blockchain, ABEYCHAIN 2.0 recently announced the launch of the first decentralized exchange (DEX) in its ecosystem. Expected to serve as an improvement over earlier interaction of decentralized exchange technology, the XSWAP DEX allows users to pool their assets and thereby create a liquid fund that can be used to execute all trades on the platform in a decentralized and transparent manner with lightning-fast transaction times.
The XSWAP tokens are held in their own pools, through which users can contribute digital assets in exchange for an Annual Percentage Yield (APY) based on the value staked, serving as a key incentive for DeFi participants to take a long look at the new crop of blockchains.
XSWAP is made possible by ABEYCHAIN 2.0’s novel approach to consensus, which is a hybrid consensus model which combines both Delegated Proof of Stake (DPoS) and Proof of Work (PoW) consensus for high-volume and high-speed transactions, as well as robust security. Never before has a hybrid consensus been implemented like this one, and it is based on years of research and development.
XSWAP’s innovative ‘automated market maker’ approach could prove to be more accurate at determining the price of tokens available on the platform, adjusting the price of a token in a manner entirely dependent upon the supply and demand. In short, a coin’s price may decrease or increase depending on the number of coins in the pool in real-time and in an automated and transparent manner. XSWAP protocol achieves this with a groundbreaking mathematical algorithm.
100,000 participants have already beheld the power of ABEYCHAIN 2.0. From smart contracts to robust dApps, ABEYCHAIN 2.0 executes faster than other blockchains and for lower transaction costs—an old pain point for the young blockchain industry. Buyers or sellers can complete trades in a decentralized and automated manner. Traders who use XSWAP’s liquidity protocol to trade can also become Liquidity Providers and earn incentives on the platform.
For instance, XSWAP users contribute digital assets in exchange for an Annual Percentage Yield (APY). These assets go straight to the user’s preferred token pool. Users can earn APY either in XSWAP’s native token, XT, or a token of their choice.
XT was launched with an airdrop completed on August 17th, 2021. Completed in a few hours, the airdrop demonstrated the high demand for the XT token. ABEYCHAIN 2.0 plans to conduct more airdrops in the future. 1.2 billion XT tokens are set to be distributed through the liquidity mining feature on XSWAP.
XT token holders get the right to vote on any new developments or changes taking place on the platform, and the token is also important for trading on XSWAP. Users hold XT for “gas” fees on the network, which vary depending on the network traffic at the time of the transaction. To access XSWAP, users need a supported wallet like MetaMask or the ABEY 2.0 Wallet.
Certainly, XSWAP’s automated liquidity protocol has the potential to revolutionize the trading world. XSWAP solves many challenges facing the DeFi community with an innovative trading model combining an automated liquidity protocol and an automated market maker sans the need for central intermediaries.
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