CoinTiger
BiSWAP20's exchange is built on the Binance Smart Chain (BSC), a version of Ethereum developed by Binance. The exchange sacrifices centralisation in favour of low gas fees – which have plagued Ethereum in recent years. An automated market maker allows digital assets to be transacted automatically as opposed to a typical central limit order book (CLOB) system that relies on buyers and sellers at certain prices. For its system to function correctly, the BiSWAP20 exchange relies on user-generated liquidity pools.
Once users have provided tokens to the platform, the BiSWAP network will then draw assets from these pools to facilitate trades.
• Liquidity providers. Providers are the key mechanism of AMM's functioning. Users will lend the platform (BiSWAP) their cryptocurrency assets for other people to trade with. In return, lenders earn interest and liquidity provider tokens (LPTs) that give access to unique rewards.
• Liquidity pools. These pools are a collection of funds (often held in a pairing) that facilitates trading of specific assets without requiring another person's involvement.
Automated Market Making: Traditionally, liquidity is created by two parties, the buyer and the seller. However, this new paradigm is a way for end users to trade against an automatic market. It algorithmically leverages a very simple formula, y*x = k, as per the implementation of BiSWAP; y represents a crypto asset, x represents another crypto asset and k is a constant. As y increases, x decreases, and this keeps k constant.
Reserve Warehouse: This houses the liquidity of a pair of assets, and the users trade against this liquidity
Reserve Contributor: Anyone can be a reserve contributor by lending the warehouse a pair of assets. As a result, they earn fees, based on their portion of the liquidity in a pool, when swaps are executed on-chain. This approach allows anyone to be a market maker, with very simple steps
Cross-chain Support: How would you feel if you were able to transfer your assets from one blockchain to another? Awesome, right? Developers have adopted the bridge of assets between two or more blockchains; certainly, lots of reasons are behind this.
Privacy: On centralized exchanges, the users need to pass the KYC process before withdrawals are made. This certainly exposes their personal details, and no third party can really be trusted. At least, that’s the kind of a world, in which we find ourselves. However, on BiSWAP, the transactions are private; no one, not even the BiSWAP developers, needs to know your personaldetails before you execute a swap; just connect your web-3-enabled wallet and place a click
On-chain and Transparent: Transactions on BiSWAP are on-chain, and you interact with smart contracts on each swap. On-chain transactions are transparent as the details can be tracked on the public chain anytime.
