Cypherium Launches CypherSwap: One of the First Cross-Chain Compatible DEX
- 12.10.2020 05:13 pm
Cypherium, the enterprise-focused blockchain platform facilitating interoperability between blockchain and central bank digital currency (CBDCs), has today unveiled CypherSwap, a decentralized exchange (DEX) harnessing the power of cross-chain compatibility and rendering near-endless liquidity.
The first DeFi-centric product from Cypherium is also one of the most innovative, negating several limitations offered by other DEXs such as UniSwap. First and foremost, unlike other DEXs, CypherSwap isn't tethered solely to Ethereum tokens. By leaning on Cypherium's expertise in interoperability, CypherSwap is able to offer a litany of tokens from virtually any blockchain ecosystem, including Bitcoin, ETH, and XRP.
"I believe interoperability will be the lynchpin between the cryptocurrency market and traditional finance," says Cypherium CEO Sky Guo. "CypherSwap enables this kind of interoperability, allowing for far deeper liquidity and accessibility to the decentralized finance sector. By doing so, it will encourage a much broader demographic, far beyond the current niche of the ethereum-dominated DeFi quarter."
CypherSwap removes liquidity concerns thanks to its a deterministic algorithm, dubbed the “Automatic Market Maker” (AMM). One of the major advantages of the AMM is that it provides liquidity regardless of the size of the order book or liquidity pool. It does so by gradually increasing prices along with demand. CypherSwap also supports other market makers too, such as order book. Every new market maker mechanism can be added to CypherSwap as a plugin. CypherSwap will also support trading varieties such as NFT and derivatives.
The DEX is underpinned by liquidity providers who furnish the corresponding tokens on the chains of various currencies through the CypherLink protocol. These cryptos are then bought by traders who can exchange coins at a fixed fee of 0.30%. The exchange process is automatically completed via smart contracts within the Cypherium chain.
CypherSwap automatically matches liquidity providers with liquidity pools bearing the highest interest and allowing them to realize the maximum possible yield. Similarly to UniSwap and other DeFi protocols, CypherSwap comes equipped with its own governance token, CypherSwap Token (CST). CST acts as a reward for liquidity providers and can be used by holders to vote on network-wide decisions.
CypherSwap is expected to launch by the end of 2020, 2–3 months after the launch of Cypherium’s Mainnet scheduled for October 31, 2020.