01 Explosion of the DeFi Ecosystem
In the crypto world, DeFi is the most suitable application for products and markets after Bitcoin.
In the past year, the Total Value Locked (TVL) of DeFi has been soaring over $10 billion from $500 million. And its total market value has increased from less than $1 billion to more than $15 billion. Some subdivisions, including DEX, stablecoin, oracle, lending, insurance, are emerging from DeFi, following the exponential growth over the past year.
The First Battle in DEX
On September 9, 2020, Sushiswap’s liquidity migration was achieved. More than 70% of Uniswap’s liquidity successfully leveraged, thus becoming the DEX boasting the best liquidity — its current liquidity reached US$1.33 billion while it just was born two ago. Uniswap’s liquidity is now less than 35% that of Sushiswap. Uniswap fell from the most liquid DEX to second place in just two weeks, like the “Game of Thrones” in the crypto world. Sushiswap’s liquidity exceeds $1.3 billion, which is 2.8 times that of Uniswap. The first battle in the DEX field has started.
02 Ethereum’s Constraints on DeFi Ecological
Currently, the DeFi ecosystem has the largest number of projects on Ethereum, presenting the fastest growing. However, Ethereum’s disadvantages of low throughput, slow speed, and high fees also make participants frown.
The Block Research Director Larry Cermak recently listed data and pointed out that in August, Ethereum miners cost US$115.3 million in fees. In contrast, it only cost Bitcoin miners $39.2 million during the same period, which is about one-third of Ethereum miners.
However, as the ecosystem continues to advance, the development of Ethereum DeFi seems insufficient by a wide margin. The various games have long congested the Ethereum network, and transaction fees continue to skyrocket.
Etherscan monitoring data shows that the current average gas fee of Ethereum is 95 Gwei, and it once hit nearly 500Gwei, a record high. Before that, the gas fee of Ethereum was only about 10~20 Gwei. The high cost and poor experience have become the “invisible threshold” for the further development of DeFi.
Although Ethereum’s layer2 solution and Ethereum 2.0 are expected to deal with the congestion to a large extent, the limitations of single-chain transactions have not yet got solved.
All transaction assets of the star project Uniswap and Sushiswap are all based on the contract assets of Ethereum. On these DEXs, Ethereum assets and other mainstream assets such as BTC, BCH, EOS, XRP, and LTC form a repulsion effect.
The market needs a DEX that can be compatible with multiple assets at one time to break through the barriers between different chains. Therefore, the next most crucial step of DeFi is the explosion of projects outside the Ethereum ecosystem.
Is there a solution that can solve the above problems and accelerate the development of DeFi, to achieve more efficient asset utilization efficiency and realize the much more flow of multiple assets? Token swap on Whitecoin’s Cross-chain Ecosystem provides a competitive solution.
The cross-chain can realize the mortgage and mutual recognition of more assets based on smart contracts without relying on a third-party centralized system’s credit guarantee.
03 Integration Mode of TokenSwap
Token swap is a DEX based on the 6-year-old blockchain project Whitecoin (XWC). In the cross-chain ecosystem of Whitecoin, TokenSwap has put forward a solution that is compatible with Whitecoin’s main chain tokens and other mainchain assets.
Cross-Chain Asset swap
Relying on the Whitecoin cross-chain ecosystem, TokenSwap realizes the cross-chain transactions of BTC, ETH, LTC, USDT, and all contract token assets based on Ethereum ERC20.
By injecting cross-chain assets to provide liquidity for TokenSwap, users can obtain multiple benefits—not only the income of participating in DeFi activities but also the income of TP tokens for liquid mining. That is, users can inject cross-chain assets into liquidity and carry out TP liquidity mining simultaneously.
According to our plan, the follow-up Whitecoin cross-chain ecosystem will also dock with high-quality digital assets with top value such as XRP, EOS, and XRP.
Advantages of the TokenSwap
TP, as a governance token, assists early liquidity providers to win growth value
The foundation of Uniswap’s development is the continuous growth of liquidity brought by liquidity providers. However, the early liquidity providers used their real assets to practice the contract’s feasibility, and they assumed security risks and losses caused by excessive slippage. Still, they did not win the value brought by the development of the protocol. TP represents the potential value of the development of TokenSwap. Early liquidity providers can obtain tokens more easily than latecomers and can get more reasonable returns.
APP operation reduces the entry barrier for users
TokenSwap has launched a decentralized APP, convenient for users to operate anywhere, significantly reducing the entry barrier for users.
The ecological foundation of the 6-year blockchain project
Based on the Whitecoin ecosystem, a public chain project with a 6-year history, TokenSwap is skilled in project management.
Every significant development of DeFi still has to return to the foundation of the underlying blockchain architecture. Whitecoin’s cross-chain ecosystem enjoys excellent potential in the future.
Under the leadership of TokenSwap, we will see that the Whitecoin cross-chain ecosystem attracts many DeFi developers and that TokenSwap’s full-asset transaction can bring new opportunities to DeFi.