Decentralized Exchanging And Automated Market Making In AnchorSwap

Decentralized exchanges, or DEXes, have been one of the hottest topics in recent years which increased their popularity among users significantly. The reason for the surge – decentralized exchanges offer greater flexibility, they are ease to use, and offer more options for users to make profits.

However, in contrast to centralized crypto exchanges like Coinbase and Binance, DEXes do not take into account exchanging fiat tо crypto – all things being equal, DEXes solely perform crypto-to-crypto exchanging. 

Decentralized exchanges operate on the principle of smart contract execution. They use an algorithm to determine the prices of various tokens and use “liquidity pools” – in which users lock assets in return for interest.

Furthermore, many centralized exchanges record transaction history on their internal databases, while DEX exchanges use solely the blockchain for information storage and transaction execution.

DEXes are typically based on open-source code, implying that anybody can see precisely the way in which they work and audit the underlying code. In addition, developers can enhance the functionalities of a given code and develop new trading solutions – which is the way Uniswap’s code has been adjusted and used by a whole cohort of DEXes like Sushiswap and Pancakeswap.

And since decentralized exchanging continues to get momentum, we see a vast potential to grow, especially on the Binance Smart Chain ecosystem. The total market capitalization of all cryptocurrencies recently surpassed $2 trillion, with over $230 billion total value locked (TVL) on DeFi protocols.

However, AnchorSwap offers a complete product experience, all in one place, in contrast with market leaders like Uniswap or PancakeSwap. For instance, our ecosystem provides access to multiple products which grow in number over the next months, while most of the market leaders currently offer just a single product, or in some cases they have up to two products available. 

Trading fees are also among the most important aspects of decentralized trading, and AnchorSwap offers the lowest trading fees among its competitors – just 0.15%. In comparison, the trading fee on Uniswap ranges between 0.3% and 1%.

Also, no major decentralized exchange currently has a native wallet, while AnchorSwap is almost ready with its AnchorLink wallet, which would be at the heart of the entire multichain experience that users can receive through our products.

Automated Market Making, or AMM, is the perfect tool for bringing and managing liquidity across decentralized exchanges. The liquidity forms when users stake tokens into the pools, seeking automated revenue on their staked funds, based on the amount of funds they allocate on a specific pool.

Currently, we support the following pools: ANCHOR, BUSD, WBNB, BTCB, ETH, and CAKE, with more to come in the following months. The farms include ANCHOR-BUSD, ANCHOR-BNB, BNB-BUSD, USDT-BUSD, ETH-BNB, BTC-BNB, DOT-BNB, MATIC-BNB, and TRON-BND.

AnchorSwap became the first automatic liquidity acquisition yield farm and AMM decentralized exchange, running on Binance Smart Chain. We developed numerous features that allow users to earn high APY through staking on liquidity pools.

Furthermore, we developed the AnchorSwap DEX with the community in mind, introducing features like Anti Whale, Anti Flash Loan, Harvest Lockup, Automatic Liquidity, and Automatic Burning. The Anti-Whale functionality, for example, does not allow transfers of more than 0.5% of the total supply. This way we ensure that pump and dump practices by large investors are being restricted.

Also, we released a harvest lockup feature, which is a defense feature limiting the frequency of harvesting to prevent farming arbitrage bots from constantly collecting rewards and dumping them. For the native ANCHOR farms, we have set the harvest lockup at two hours, while other farms have an 8-hour harvest lockup.

At the core of AnchorSwap is the ANCHOR governance token. The governance token allows users to vote and suggest new features, decide about opening new pools, new farms, and participate in future ecosystem improvements. 

In 2022, we will finalize the development of our native wallet, AnchorLink, and we will implement NFTs, going cross-chain via the Binance Smart Chain functionalities, as well as introduce fractionalized NFTs and NFT lending.

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