As promised, here is part 2 which will cover the DEX domain!
If you missed part 1 it is available here : Part 1
I've been in the crypto currency business for many years and have used many centralized exchanges for selling my mining revenues as well as for increasing my revenues by day trading. Centralized trading is much improved over the years and offers complex products such as Smart-order and Advanced Order which are very useful to be in profit in the darker times of cryptocurrency, in addition to offering very low transaction fees allowing us to make profits on small fluctuations. This is only a small part of what some centralized exchanges offer.
But a major problem remains, when your funds are placed on these exchanges, you are no longer in control of your assets. You need to have confidence in it.
Several past events have shown us that there is indeed a risk when we use these exchanges.
Some exchanges have simply closed overnight, taking with them all the assets of their clients, while others have been hacked or many of their clients have been robbed of their assets.
On top of that, regulations are becoming stricter and require you to submit several pieces of information about your identity for KYC verification purposes, which has allowed hackers to access this confidential information and resell it on the dark web.
All that was needed was the recent additional regulations banning anonymous corners on exchanges in the U.S. to make DEX exchanges a priority.
We now have access to decentralized exchanges such as Uniswap, Airswap Protocol ... IDEX. ... Bancor. ... Kyber Network. ... Binance DEX .... And many others. This allows everyone to exchange their crypto-currencies directly from their wallets, without any verification required. People now have a wide choice of wallets whether it is with a hardware wallet like the Ledger or one of the many wallets offered on our cell phones, Metamask, Trustwallet, Frontier and many others. People can now exchange their assets directly without having to entrust them to a third party.
But a problem that I consider major persists for the adoption of this type of exchange.
It's the fees that are charged to you when you do SWAP. Gas fees are extremely high. It's a fee that constantly varies depending on a number of factors. To give you an example, last night exchanging 200$ US of Ethereum for another token could cost 54$ which represents more than 25% of transaction fees. That's huge! Compared to a centralized exchange like Binance, you would have paid .1% which represents .20$ on a 200$ transaction. This makes DEX trading inconceivable for retail DAY traders and even less so at the institutional level.
But this will change very soon thanks to the ZEROSWAP (ZEE) project!
ZEROSWAP offers several impressive features!
Zeroswap is a multi-chain compatible decentralized exchange aggregator focused on making zero-fee transactions possible. It aims to make on-chain trading simple and easy, by providing access to Ethereum, Binance Smart Chain, DEXes access under one roof. One of the core utility of $ZEE is to reduce friction in fundraising using digital assets.
It offers the following utilities :
DEX Aggregation - This enables the untrusted exchange of cryptographic assets between various Layer 1 solutions. ZeroSwap uses a truly multi-channel architecture that will initially support the Ethereum and Binance smart chain, and will progressively support more chains over time, resolving the fragmentation of liquidity in different chains.
Liquidity Extraction - this allows users to pool tokens for liquidity provisioning between various DEXs via ZeroSwap. Users are incentivized with rewards based on the volume of tokens pooled. Cash extraction is an important factor in the growth of DeFi, responsible for the growth of Ethereum's DeFi traffic.
Market Making Suite - The Market-making suite enables true chain trading thanks to the ZeroSwap SDK. The SDK can be easily integrated into existing user workflows.
DEX Token Offering (DTO) - The DEX Token Offering Platform (DTO) is a platform to participate in the initial tokens offered on ZeroSwap. Users will be able to purchase tokens, and this will provide them with a fair opportunity to participate in the initial offer as opposed to what is currently in Uniswap where the non-technical trader is against bots in the backend. ZeroSwap will have an underlined operating algorithm to handle this.
In addition to all its utilities, it will have the following features:
Gasless Transactions - ZeroSwap uses transaction fee extraction to offer gasless transactions for all chain trades, as well as any addition or removal of liquidity.
Zero-Fee - Adding or removing liquidity and trading attracts no fees. Rewards - Users will earn rewards for chain trades, cash extraction and liquidity provision.
DEX Aggregation - Offers global liquidity across all existing protocols to provide the best token rates in the market.
Governance - ZeroSwap uses a governance mechanism that changes over time to ensure consensus in protocol governance.
Developer Friendly - The ZeroSwap protocol is fully compatible with the technology and developer friendly, allowing users to create workflows in a transparent manner.
ZEROSWAP is very advanced in its project and already has several partnerships to its credit, here they are: Covalent , Frontier , Elrond , Diadata , Altonomy .
Which is in partnership with ZERO-SWAP and allows users to use major mobile wallets such as Trust Wallet, Coinbase Wallet, MetaMask Mobile, imToken and Fortmatic
A date not to be missed is February 18, 2021, because it is the launch of their Platform IDO (Initial Exchange Offerings) called ZEEDO!
ZeeDO - Is ZeroSwap's Dex Offering Platform to do distribution of tokens on-chain, it has been designed to empower - users by enabling them to participate in DEX offerings in a fair and transparent manner; as well as for companies who will not have to worry on the unfair and not so transparent cost been charged by current IDOs.
According to my analysis ZEROSWAP will definitely outperform current DEX exchanges like Uniswap as well as current aggregators like 1inch.
In simple comparison Zeroswap is the equivalent of GOOGLE when it appeared and killed ALTAVISTA , Yahoo , Copernic and many others.
To finish here is a comparison of the prices of UNISWAP and 1INCH tokens to their potential successors ZEROSWAP
ZEROSWAP token (ZEE) current value: 0.31$ for a max supply of : 100,000,000
1inch token : 5.35$ for a max supply of : 1,500,000,000
Uniswap (UNI) token: $19.76 for a max supply of 1,000,000,000
I let you do the math!
Here are several interesting links about ZEROSWAP
If you have any questions or comments, please leave it below.
See you soon !
Cryptocurrency & Blockchain
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.