Although Ethereum is experiencing a three-year high, its gas fees are still relatively high on most DeFi exchange platforms. Most people find it challenging to conduct transactions of any size on a blockchain platform as it costs over $60 to transfer an ERC20 token. For instance, a standard trade on Uniswap costs anywhere between $50 and $120 to complete, while a Smart contract transaction may go up as high as $100 - $200. Sarmaswap aims to remedy this financial disaster. The team behind it aims to make crypto transactions cheaper, faster, more transparent, and at almost zero costs in gas for internal transactions.
What is Sarmaswap?
Sarmaswap is a first-generation autonomous yield protocol that will enable users to trade NFTs, cryptocurrencies and other derivatives for a single charge and for near-zero internal gas costs.
Among the most outstanding features of this project is its automatic liquidity pool. Not only does it gather tokens from crypto traders to add them to the pool and stabilize the pricing floor, but it also acts as an arbitrage-resistant mechanism. This means that the automatic LP ascertains the reservation of a specific volume of Sarmaswap tokens to serve as rewards for token holders.
Ideally, the automatic LP guarantees price stability by increasing the tax to the overall liquidity of the token. In turn, this leads to promoting the token's overall liquidity pool and backing the SMS price floor.
The protocol will also include a Web 3.0 platform and a decentralized iOS and Android swapping platform that will soon feature farming functionalities known as Sarmaswap farms. They will consist of various farming alternatives and allow users to earn SMS tokens from staking LP tokens. As a result, this encourages the development of multiple liquidity pairs.
Thus, when users conduct a transaction that adds to the liquidity pool, they receive LP token rewards. For instance, if a trader contributes liquidity to the BNB/UNI pair, they will gain BNB/UNI LP tokens. Thus, besides the transaction cost benefits, such investors can use 'farms' to stake their LP tokens and trade them in for Sarmaswap tokens.
Note that the platform utilizes the static reward mechanism to solve issues arising from farming price bubbles. As a result, the volume of the traded token is part of the amount of rewards, alleviating the negative sell pressure caused by early adopters who sell their tokens upon harvesting exceptionally high APYs. In addition, the static reward system, also known as reflection, motivates holders to continue holding their tokens for better rewards, which depend on the total number of coins held by the holder.
Generally, Sarmaswap consists of three primary functions: burning, reflecting, and LP acquisition. Take note that this project's burn strategy will be available on its website readout, providing transparent transactions and the ability for users to determine the current circulating supply at any time.
Furthermore, every transaction on Sarmaswap attracts a 10% tax. Consequently, 5% goes to all token holders for every transaction, while the other 5% goes to a burn address. There is another 3% that is divided 50/50, with one half pairing with BNB token to serve as a liquidity pair on Pancake Swap, and the other half goes to the Sarmaswap DeFi exchange pool.
The Sarmaswap Token
The initial step of the Sarmaswap decentralized platform is the Sarmaswap token, which is a deflationary asset built using the Binance Smart Chain (BEP-20). It has a total supply of 1,000,000,000,000,000 and has received track listings on Coingecko and Coinmarketcap.
The primary goal of this token is to deliver the quickest Defi transaction possible, with the lowest one-time exchange charge and no gas expenses for internal transactions. As such, it aims to address today's excessive gas prices on DeFi platforms, which curtail the creation of innovative life-changing Blockchain projects. Sarmaswap rewards its staking holders with liquidity by increasing their stake value and offering a good stake payment percentage.
Advantages of Sarmaswap Project
- Low gas fees: Since Sarmaswap features a blockchain, every swap only consists of a Smart contract, two tokens, and two users. Users can exchange any digital asset that complies with the Smart contract through a one-time fee. There are no additional gas expenses for each transaction.
- Staking rewards: Those who buy and hold Sarmaswap tokens automatically receive a 5% reward per transaction conducted on the platform
- Enhanced transparency: Sarmaswap is an escrow-free, non-custodial and transparent platform. All transactions are peer-to-peer with no third-party players. The price indicated is the price that you will pay as there is no price-fixing, creating a blockchain-based decentralized exchange platform.
- High APY staking: Sarmaswap Platform allows investors to stake their shares via Proof-of-Stake (POS). It promises to provide the best APY to coin staking investors in the network, enabling holders to profit from their digital assets.
- Maximum security: The team behind this network developed it on a blockchain, which is known for its high-security level
Disadvantages of Sarmaswap
- Still in its developmental stages: Sarmaswap is still under development as there is yet to be a launch for most of its features.
Currently, the team behind this project is concentrating on branding, marketing, and expansion of the core team as the initial phase of token creation and launch was completed last year.
The next phase will consist of the announcement of token listings, which will take part in the second quarter of 2022. This is a significant milestone since Sarmaswap will receive high publicity to attract the attention of prominent tech media.
Although we often evaluate new blockchain initiatives, few have piqued our interest as much as Sarmaswap.
This project offers a measurable benefit and addresses a long-standing issue in the Cryptocurrency community. We can only support such initiatives since they promise to improve the crypto experience for millions of people.
The project has different stages, which we will happily track throughout the following months as we are looking at the presale event, which is ongoing. Visit the official Sarmaswap Website to learn more about the project.
Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Furthermore, Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site. Trading cryptocurrencies is a highly risky activity that can lead to major losses. You should consult your financial advisor before making any decision.