The core function of WanSwap is similar to many swap projects, but its bottom layer adopts the Wanchain cross-chain mechanism, with low transaction costs and high performance.

Original title: "WanSwap: A cross-chain DEX and liquid mining application"
Written by: WanSwap

WanSwap is a cross-chain token exchange protocol project initiated by the community anonymously. The Wanchain Foundation encourages community developers to make full use of Wanchain's advanced technological advantages to develop cross-chain applications that keep pace with the times. However, the Wanchain Foundation does not endorse any community projects, so users must be careful to choose the projects that suit them.

The following content was originally created by the anonymous WanSwap team. The editor only translated the articles published on WanSwap Medium for domestic users to read. When the translated text is inconsistent with the original content, the original text shall prevail.

What is WanSwap

WanSwap is a new generation of decentralized exchange (DEX) built on the basis of automated market making (AMM). With the leading benchmark set by the star project Uniswap in the industry, WanSwap based on Wanchain's cross-chain mechanism also came into being. In addition to the token exchange function and liquidity provision function that any Swap DEX has, WanSwap is also inspired by SushiSwap and other related projects, and has the function of liquid mining. WanSwap makes full use of Wanchain's cross-chain features to enable cross-chain assets to be traded on the Wanchain blockchain. These cross-chain assets include wanEOS, wanETH, wanBTC, a series of wanERC20 tokens, and subsequent native tokens and ecological tokens on other public chains.

The basic trading functions of WanSwap come directly from the Uniswap code base. Liquidity providers provide liquidity for trading pairs and get rewards from users' token transaction fees.

Similar to Sushiswap, WanSwap has launched a "Farm" page to distribute additional tokens to liquidity providers for designated transaction pairs to reward WASP, which is WanSwap's platform currency.

Compared with a large number of homogeneous swap projects that have come out, how does WanSwap outperform others?

Since the beginning of this year, new cloned swap projects have been born almost every day. Because of this, you might think that WanSwap is just an ordinary member of the swap project. No. WanSwap is definitely the best among all the projects. The core function of WanSwap is similar to many swap projects, but the bottom layer of WanSwap also uses Wanchain's unique cross-chain mechanism. The blessing of this feature makes WanSwap better than any swap based on Ethereum.

Decentralized cross-chain transactions between assets on different chains

Wanchain is an early practitioner of cross-chain technology. With the help of Wanchain cross-chain technology, a large number of native coins and ecological tokens of mainstream public chains have been mapped, including BTC, ETH, EOS and ERC20 tokens. These assets can be conveniently crossed between Wanchain and their respective public chains through the wanBridge based on the Wanchain cross-chain node group (Storeman Group). The release of Wanchain 5.0 has made a significant improvement in the convenience, security and decentralization of this set of cross-chain mechanisms. With WanSwap as the link, any public chain that has been cross-chain integrated with Wanchain, the native currency and ecological tokens between chains can achieve cross-chain transactions through WanSwap. After the cross-chain transaction is completed, users can easily cross the tokens back to the original chain in a decentralized manner (such as through Wanchain light wallet or wanBridge Web) to obtain native coins.

For example, you can cross your ETH to Wanchain through wanBridge Web and become wanETH; through WanSwap, convert wanETH to wanBTC, and then cross wanBTC to your Bitcoin web wallet through wanBridge Web. This entire process is completely decentralized. Therefore, you will completely get rid of the shackles of currency exchange through centralized exchanges.

High performance and low cost

At present, Ethereum uses the Proof of Work (PoW) consensus mechanism, while Wanchain uses the Proof of Stake (PoS) galaxy consensus mechanism. The Wanchain Galaxy consensus mechanism greatly reduces transaction costs and significantly improves transaction speed. Depending on the complexity of the transaction, the gas fee on Ethereum can range from a few dollars to tens of dollars or even hundreds of dollars. However, the gas fee for transactions on Wanchain is usually less than one cent, which is less than one-thousandth of the Ethereum fee. At the same time, the transaction confirmation speed on Wanchain is much faster than that on Ethereum. Usually, once the transaction is sent, it is confirmed in time.

WanSwap, built on the Wanchain platform, naturally inherits the advantages of fast transaction speed and low transaction fees. This undoubtedly opens up a new world for WanSwap and creates a picture that cannot be achieved in the world of Ethereum swap. For example, the automated market-making strategy is economically feasible on WanSwap, while the market-making strategy can only be sighed on the Ethereum network with high gas fees.

WanSwap behind the scenes team

WanSwap is composed of a group of anonymous people in the Wanchain community, including experienced software developers, web developers, designers, marketers, etc. These small partners gathered together, trying to build WanSwap as a public facility for the Wanchain ecosystem and the entire cryptocurrency industry.

Source of funds for WanSwap project development

As a community-driven project, most of WanSwap's work is done voluntarily by community volunteers.

For early contributors to the WanSwap project, they will receive a portion of the WASP tokens from the liquidity provider’s mining rewards in recognition of their contributions to the WanSwap project. Except for early contributor rewards and liquidity provider rewards, there is no other way of issuing WASP tokens. There is no token pre-sale in WanSwap, and there is no token private sale.

What currency pairs will be launched in the early days of WanSwap?

WanSwap will launch the following currency pairs at the beginning of its launch:

wanBTC-WAN

wanETH-WAN

wanEOS-WAN

wanUSDT-WAN

FNX-WAN

Although anyone can issue tokens on Wanchain, and anyone has the right to add the currency pairs they want on WanSwap, the WanSwap team will provide a list of selected currency pairs so that users can be more confident in selecting Trading in currency pairs. At the same time, only participants who provide liquidity for the currency pairs on the select list are eligible for WASP rewards. In the future, the WanSwap team will transfer the management of the currency pair list to community governance.

WASP token description

The total number of WASP tokens issued is 210 million.

There is no pre-mining of WASP tokens, and the team has no reservations. All the rules issued by WASP will be written into the WASP token contract.

WASP tokens will be used for the community governance of the WanSwap project, through voting to determine future transaction fees, rule changes, token issuance, DAO plan start-up funds, etc.

The issuance of WASP tokens conforms to the deflation curve model, and the number of tokens is gradually reduced over time, until it finally reaches 210 million.

The WASP tokens generated in each block will be automatically distributed to traders, liquidity providers and the DAO Foundation.

WASP token economic model

10% of the WASP rewards will be allocated to the DAO Foundation. These funds will be used for early project contributors, and the DAO will manage these funds in the future. The detailed rules of WASP token economic model will be published on WanSwap official website. Every month, we will publish the token information distributed to contributors on the WanSwap official website.

Ten things you must know about WASP tokens

1. WanSwap is the world's first automated market-making DEX based on Wanchain's cross-chain mechanism.

2. WanSwap is a completely community-driven project, which gives full play to the passion and dedication of Wanchain community members to the community project.

3. WanSwap's regular trading functions have borrowed heavily from the Uniswap code base. Therefore, we are particularly grateful to the Uniswap development team!

4. The liquidity mining and reward distribution mechanism borrowed heavily from the SushiSwap project.

5. The multi-asset cross-chain transaction function supported by WanSwap is based on Wanchain's cross-chain mechanism. Therefore, WanSwap seamlessly integrates Wanchain's browser plug-in wallet WanMask.

6. WASP is the WRC20 token, which is generated through WanSwap and used for liquidity mining, community governance and other aspects. (WASP token has not yet been issued, please pay close attention to our Medium and Twitter accounts for the latest news.)

7. WASP token distribution has no reservation, no private placement, and no pre-mining. 95% of the tokens are used for liquidity mining rewards, and 5% of the tokens are used for community funds.

8. The total issuance of WASP is approximately 210 million.

WASP token issuance schedule:

The complete issuance cycle of WASP is 24 months, which includes 3 stages:

The first stage: (about 1 week, determined by the block height) 1 time reward (about 12.5286 WASP per block)

The second stage: (about 2 months) 5 times the reward

The third stage: Gold Saints (approximately 21 months + 3 weeks) 1 time reward

9. WASP token distribution formula

According to the following formula, the average reward per block is calculated to be about 12.5286 WASP:
Average reward per block = 210 million (total) / 3 stages total about 730 days

The first stage: 1 times the reward, about 7 days

The second stage: 5 times the reward, about 60 days

The third stage: 1 times the reward, about 663 days

Average reward per block = 210 million / (7+560+663)246060 / 5) = 12.5286

(Translator's note: The final division by 5 in the formula is because the Wanchain mainnet produces a block every 5 seconds)

10. The initial currency pairs are as follows, each currency pair corresponds to a different WASP reward weight:

WAN — wanBTC, weight 15%

WAN — wanEOS, weight 3%

WAN — wanETH, weight 40%

WAN — wanUSDT, weight 40%

WAN — FNX, weight 2%

WASP holders can vote in the future to change the weight of the currency pair (Note: the voting function is under development)

The transaction fee is 0.3%, of which 0.25% will be allocated to the corresponding currency pair pool, and the remaining 0.05% will be repurchased through WanSwap for WASP tokens.

11. (Although it is the ten must-know content, but that's the end of the story, we can't help but say a few more!) WASP is a community governance token that serves all aspects of the community, including voting on major decisions and related services And other potential uses such as cost sharing.

Please note that WASP tokens will not be listed on any official exchanges in the first few months. This is to protect WASP as a real governance token and prevent people from speculating on the currency.