O3 Swap’s version 2, officially named ‘O3 Interchange’, will be a cross-chain DEX like no other in that it provides services aside from bridging the same token across different chains, but rather swaps heterogeneous or different digital assets too. In addition to aggregating DEXs on the source chain as V1 did, O3 Interchange will also aggregate DEXs on the destination chain. That means users will have more choices for their destination asset.
O3 Interchange was designed by a team dedicated to building an interoperable aggregator for Web 3.0 that provides a universal solution for cross-chain trading. The design closely aligns with the O3 community's feedback to push the boundaries of what's currently technologically possible. O3 Labs will continue to closely follow the existing cross-chain solutions on the marketplace and will continually improve the protocol according to the wishes of $O3's holders via the O3 DAO which should be refined and released sometime at the end of Q1 of 2022 or in Q2 of 2022.
The new cross-chain mechanisms of Swap and Bridge allow for simple one-time confirmation transactions. Additionally, they'll be able to support more EVM-compatible chains and tokens. Separately, the O3 Labs team will also provide a Gas Station to solve the gas fee demand on each chain. Through Interchange and with stops at our Gas Station, users can better access the Web 3.0 superhighway.
1. O3 Interchange Layer Structure
1.1 Application Layer
O3 Swap: O3 Swap V1 only supported aggregating DEXs on the source chain, but O3 Interchange, which is the updated and full version of V1, now can also aggregate DEXs on the destination chain via a cross-chain aggregator. This means that cross-chain swaps on V2 will have a more diverse set of token offerings to swap from and to.
O3 Bridge: Based on PTMCs (Pegged Token Management Contracts) and pToken AMM Pools, O3 Bridge will allow users to safely bridge their tokens from one chain to another through the use of a sleek user interface, instantly with one-time transaction confirmations.
O3 Gas Station: Considering there’s no better solution to meet the huge demand in gas fees in the current market, the O3 Gas Station is developed based on the O3 Swap to provide users with a simple interface and powerful function. Users no longer need to buy ETH/BNB/MATIC/etc... on centralized exchanges (CEXs) and withdraw to their decentralized wallets frequently. This costs valuable time and money. Instead, they can exchange these gas tokens directly within our gas station with little fuss.
O3 Wallet: The brand new O3 Wallet focuses on being a mobile cross-chain tool, where the main functions, like Swap and Gas Station, will be integrated into one app with our proprietary UI. Others like Hub and Vault will also be included in the O3 Wallet Mobile APP progressively, stage by stage.
1.2 Protocol Layer
O3 Aggregators: Aggregate the liquidity from DEXs on various chains, provide abundantly supported tokens to swap, and look for the most cost-efficient routings.
PTMCs (Pegged Token Management Contracts): A series of smart contracts on different chains manage pTokens’ burning on the source chain and minting on the destination chain. Each pToken on each chain has an independent PTMC. These PTMCs will be run by a relay network - Poly Network.
1.3 Liquidity Layer
DEXs: DEXs integrated by the O3 Aggregator help users swap between different assets. We can integrate multiple DEXs on different chains.
NPAPs (nativeToken & peggedToken AMM Pools): An AMM pool consists of an amount of Token and an amount of its pegged token(pToken). These pools are operated by the protocol automatically during cross-chain transactions, so there are no extra steps for users to interact with them. Only when it comes to adding liquidity or converting between Token and pToken via Barter for arbitrage opportunities will users need to take that step on their own.
By deploying pToken AMM pools, numerous hot and niche long-tail tokens from projects looking for exposure can be supported for cross-chain transactions on O3 Swap V2 easily and frequently.
1.4 Network Layer
All EVM networks can be supported in a short time by simply deploying PTMCs and integrating with O3 aggregators. Supported networks will be synchronized on Swap, Bridge, and the O3 Gas Station.
The Economic Model of O3 Interchange(v2)
O3 Swap Token (O3) issued by O3 Labs represents all O3 products and is also a critical mediator to promote their development. Except for trading on exchanges and some airdrop events, there are two major ways to earn O3 tokens: providing liquidity in Liquidity Pools and participating in governance voting.
Most importantly, O3 Interchange will build an Economic System of Deflation. All transaction fees collected into the Treasury will be used to constantly buyback $O3 and burn to pump it, thus benefiting all $O3 Holders.
In addition to the O3 Swap Token, the O3 DAO Token (DAO3) is the governance token and performs extra applications of O3. O3 Holders can stake their O3 to get DAO3, which means being an O3 Holder is the only official way to get DAO3. Most notably, DAO3 mainly represents the governance rights of holders, so it shall not have a price or should be price inelastic.
Under this Economic System of Deflation, all participants, including users, liquidity providers, developers, and all O3 Holders, will be encouraged to invest in the maintenance of the overall ecology through the O3 and the DAO3 tokens.
