LBank
Transactions in general trading platforms and traditional stock markets are conducted via order books, which means that buyers and sellers define their orders separately. Buyers typically want to buy at the lowest price, whilst sellers aim to sell at the highest price. In such situations, both parties may not reach a consensus, rendering transactions incomplete.
During such a time, a Market-Maker must appear to facilitate transactions where it will accept buy and sell orders to generate liquidity, thus allowing users to trade without the other party’s appearance.
In ESwap, every user may become a Market-Maker or Liquidity Provider (LP) to provide liquidity for ESwap. The LP possess the simple role of creating ETH-stablecoin trading pairs to increase the pair’s reserves. With more ETH reserves, the trading price of stablecoins are more balanced, and paired tokens possess higher liquidity.
Decentralize Wallet
As ESwap is a decentralized trading platform built on Ethereum smart contracts, most cryptocurrency wallets applicable to the Ethereum chain may be linked to and used by ESwap, including MetaMask, imToken, Trust Wallet, Huobi Wallets, and so on.
No Third Party
The biggest feature of the decentralized trading platform is the elimination for the participation of third parties and order book in blockchain finance through the usage of Smart Contracts to achieve financial decentralization and matching of order.
Liquidity Pool
Unlike a centralized trading platform in the form of an order book, there is no order book in ESwap. The exchange rates of tokens are determined by POOL, which means that price fluctuations are determined based on user transaction volume.
