SmartSwap is here to disrupt the game. Here’s how.
SmartSwap’s value proposition is cross-chain swaps with zero slippage. It aims to seamlessly connect DEX, CEX, and OTC projects and clients by standing on top of them. The team themselves compare the project to Paypal, in the sense that Paypal is a single layer on top that connects most banks.
That’s where the similarities end, because, get this: SmartSwap will reimburse 100% of your transaction’s gas expenditures in the SMART token. Paypal could never!
Who can swap with whom?
The service promises that it’ll, “allows users to swap tokens through Peer-to-Contract (P2C), Peer-to-Contract and Group (P2P&C), and Peer-to-Peer (P2P) trading technology built in a blockchain agnostic fashion.” In the future, they’ll connect everything:
● Casper
● Tezos
● Tron
● HOLO
● Ontology
● ALGO
● Polkadot
So far, Smart Swap supports BNB <> ETH and ERC20<>BEP20 swaps. So, it’s a bridge between Ethereum and the Binance Smart Chain. This is massive, considering that at the time of writing, the Total Value Locked in the Binance Smart Chain is $30B and the TVL in Ethereum is $51B.
The service also promises a way for non-smart contract chains like Bitcoin to interact with their ecosystem. Not only that, SmartSwap’s whitepaper promises that: “The process allows users to send orders to the SmartSwap without knowing who the counterparty is and without any time pressure to claim the order.”
How does SmartSwap work?
Some of the solutions they propose are actually quite simple. For example, SmartSwap achieves the “no slippage” by pricing every transaction in Dollars. For example, if you want to trade ETH for BNB, the system asks you for an amount in Dollars and both you and the other person get exactly that. According to their whitepaper, they use “the current average market price between multiple reliable exchanges” for calculations.
This simple process also solves volatility because the system doesn’t allow for speculation. Now, if there isn’t enough liquidity to complete the transaction on either side, the system fulfills the order to the degree it can, and returns the remaining funds to the person with excess liquidity. There’s no slippage anywhere.
Also, get this: All the fees are paid in the coin you have. If you have ETH, you don’t need BNB for the fees and vice versa. The system deals with the networks and the exchanges and swaps what needs to be swapped. This is done under the hood, in a simple and invisible way.
Their service’s total fee is 0.30%, how do they manage to reimburse that plus the network fees? Again, quite a simple answer. SmartSwaps created the “bus” process for this, “Instead of sending individual transactions, the bus process groups transactions together for the same tokens within the same block.”
The whitepaper uses the Ethereum gas fees as an example: “10 users pay $50 gas The contract receives $500 total for gas costs but with the bus strategy gas may only cost $50 Therefore, the extra $450 is used to buyback SMART in the market for the rewards pool.”
From that, 80% is used to buy back SMART. The remaining 20% goes to the Atom Foundation for maintenance and to use in SmartSwap’s marketing plan.
Also, they only mint SMART every time a contract gets successfully fulfilled. Which leads us to…
SMART’s tokenomics
Around 1.9M SMART will be created before minting. From those, zero goes to the treasury or to the team and founders. Around 706K constitute the institutional pre-sale and 100K the public pre-sale.
Around 450K will be offered to the public in a PDO which, as opposed to the traditional IDO or Initial DEX Offering, will happen later in the game. About that process, the whitepaper claims, “100% of the funds raised from the PDO will automatically transfer to the SMART
liquidity pool to support liquidity and growth, no funds will go to the developing team or founders.”
The remaining SMART from that first batch will be for the initial pools, staking rewards, and router.
The pre-sale price will be $0.1 and the PDO’s $0.2
To prevent the lucky individuals that get them from dumping tokens on the community, SmartSwap developed what they call a “Dumper Shield.” It’s just as it sounds, “The tokens
behind the Dumper Shield cannot ever be sold below the average market value. Investors can sell their tokens at or above the average market value only.”
The system does offer an OTC solution for investors who want to sell at a discount, but it’s behind the Dumper Shield and doesn’t affect the token’s price.
Another novel idea is that the SMART comes with a “flexible DeFi staking
contract directly into the token.” That means, you’ll not need external smart contracts to get staking rewards. You’ll receive them every time a Binance Smart Chain block is created, just by holding your SMART in your wallet.
They will also reward you if you choose to lock funds in their liquidity fountain.
SmartSwap’s investors
The company’s Twitter has been bursting with activity lately, and a good chunk of it was directly related to announcing their newest investors and partners. Among the people and organizations supporting this project are powerhouses like:
● 7FN Capitalists
● Alpha Capital Ventures
● Nodeseeds
● Crypto Now, the premier cryptocurrency research group, who said in a statement: “The SMART DAO solves industry problems with one click”
● Hatu Sheikh CMO for the DAO Maker incubator
● Matrix Ventures, whose founder said: “We are extremely bullish about SmartSwap because it solves the liquidity issue that exists on AMMs.”
● Moonwhale
● The investment community Global Fried Crypto
In a recent AMA, SmartSwap’s founder and CEO Yoda Rege, told the world: “It’s not really a swap. It’s like taking the industry from kindergarten to the University. It’s a new level in preparation for mass adoption.”
We look forward to the SmartSwap launch!
