A Review of LINKSWAP: Decentralized Cryptocurrency Exchange (DEX)
Cryptocurrency adoption continues to grow, with Bitcoin and Ethereum coming into the mainstream than ever before. The industry continues to bulge with new projects, including solutions to some of the pitfalls facing it over the years. For instance, centralized cryptocurrency exchanges have been in the spotlight over the loss of funds, specifically from hacks. Following the increasing cryptocurrency use, they could be prime targets for more hacking.
These occurrences necessitated the emergence and rise of decentralized exchanges that provide security of financial assets and financial inclusiveness, flexibility, and anonymity. In June 2020, DEX’s trading volume hit a record of $1.52 billion. It was a double-digit percentage rise from the trades recorded in late 2019.
Today, there is no shortage of decentralized exchange platforms, but we shall focus on YFL’s LINKSWAP DEX.
What is LINKSWAP?
LINKSWAP is one of the latest decentralized finance projects with automated market makers launched in December 2020. The project launched to rival Uniswap, which has all along been Ethereum’s strongest DEX. Sushiswap was initially the major Uniswap’s rival, although it still trends behind Uniswap in terms of total value locked. Uniswap is currently ahead with more than 2 billion while Sushiswap at around 400 million. However, both DEXes notably have a huge financial backing while LINKSWAP is entirely community-run
The project team declared they were targeting the Chainlink community and promised to build a DEX for Link Marines from its launch. However, the platform comes with outstanding features for handling the second-generation automated market makers’ (AMM) challenges.
LINKSWAP’s Unique Features
LINKSWAP is notably the only decentralized exchange platform that has a fiat on-ramp feature. Users can buy crypto assets through the bank or their credit cards.
Ideally, decentralized exchanges function in the same way as other exchanges but have the difference of eliminating third-party management. Although LINKSWAP integrates partnerships and collaboration to provide more functionality, most of them run under smart contract systems. Its earliest partnership was with UniLayer, a platform that offers the trading infrastructure to support AMM limit orders. Through the collaboration, LINKSWAP users can soon create limit buys and sells. With its partnership with CyberFi, automated LP adding and removing will also be a unique feature.
The platform provides the primary AMM functionality and a unique $LINK centric infrastructure for unprecedented convenience, efficiency, and safety.
Other amazing additions the platform supports include language settings and custom themes.
LINKSWAP users also enjoy the rewards for their liquidity pool tokens. The holders can also get their rewards in other altcoins, although YFL rewards come with multipliers. The multipliers range from 1X to 3X on the different pairings. By staking their tokens, LPs provide liquidity to the exchange pool and receive transaction fees.
LPs from select liquidity pairs also earn native token rewards in addition to the YFL. The native tokens bonuses come from a native token donation pool created for that purpose.
The platform also charges listing fees to other projects that want to be part of the decentralized exchange. The fees will then be shared among YFL token holders that accept to stake their assets in the governance vault. The government vault is flexible and robust enough to support automated earnings for the community.
Rug Lock and Slip Lock Features
The LINKSWAP platform allows its protocols to lock the initial liquidity of assets through the Rug-Lock feature. That way, investors are sure their assets are protected and that the platform is serious about the longevity of listed tokens. The rug-lock setting is an optional setting that any liquidity provider pair can activate.
Users who activate the rug-lock feature enjoy reduced listing fees. The protocols also have a slip-lock feature that serves as a circuit breaker to protect the platform against malicious bots and mitigate impermanent loss.
No Mint Function
Rug pulling is one of the significant issues that prevent liquidity providers from providing liquidity. It occurs when newly listed tokens are cashed out immediately following a tremendous supply from minting the tokens. However, LINKSWAP’s listing fees discourage such kinds of listings and disincentive scammers from minting fake tokens.
YF Link itself also has a 50.000 token supply and no mint function, unlike the project it was forked from, YFI.
The LINKSWAP platform unlocks a new world of possibilities in decentralized finance and more so for Link Marines. Other than the increased rewards and protection of their token holdings, the community can vote and introduce new ideas in the ecosystem. It is also the first decentralized exchange platform with an AMM to be a revenue source for the native token holders. The community is part of the governance, so the platform follows a community-run model with a consensus on fee-splitting.
Link Marines and the decentralized finance communities can have peace of mind while trading even in newly listed assets and provide liquidity to a decentralized exchange. More trading means more fees, and therefore, LPs earn more. Besides, as an AMM, LINKSWAP is a risk-averse revenue generation avenue for long term LINK holders.
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