What is Swaap?
Swaap is an innovative market-making protocol that specializes in blue-chip crypto assets. It is designed to revolutionize DeFi market-making by providing liquidity providers with effortless and superior market-making strategies.
The protocol uses mathematically optimized strategies that intelligently adjust fees and asset holdings to maximize returns while minimizing risks, all on autopilot. This means it's like having an expert trader working for you around the clock.
Swaap's models are built in collaboration with leading institutions, bringing the best of traditional financial market-making models to DeFi. It allows liquidity providers to engage with a wide array of assets across the Polygon and the Ethereum ecosystems.
Swaap v2, the latest version of the protocol, emphasizes ease of use, state-of-the-art strategies, and strong security. It is backed by notable protocols and partners to ensure robust functionality and support.
In the world of DeFi, security is paramount. Swaap v2 has undergone rigorous audits by Chainsecurity & Quantstamp, ensuring a solid foundation. Furthermore, Swaap v2 pioneers defensive modules and on-chain protections which offer additional peace of mind to users.
Swaap's vision is to empower people globally through decentralized financial tools, ensuring that anyone, anywhere, has access to sophisticated market-making strategies that were once reserved for the elite.
Why use Swaap?
Swaap is an innovative market-making protocol that offers several advantages for users:
- Ease of Use: Swaap v2 is designed to be user-friendly, allowing anyone from institutions to individuals to benefit from advanced market-making strategies without the complexity.
- Optimized Strategies: Swaap uses mathematically optimized strategies that intelligently adjust fees and asset holdings to maximize returns while minimizing risks, all on autopilot.
- Collaboration with Leading Institutions: Swaap's models are built in collaboration with the Louis Bachelier Institute, a leading Finance Research Institute, bringing the best of traditional financial market-making models to DeFi.
- Wide Array of Assets: Liquidity providers can engage with a wide array of assets across the Polygon and the Ethereum ecosystems.
- Security: Swaap v2 has undergone rigorous audits by Chainsecurity & Quantstamp, ensuring a solid foundation. It also pioneers defensive modules and on-chain protections which offer additional peace of mind to users.
- Incentives: Swaap is offering Swaap tokens to the first wave of liquidity providers, seamlessly integrating them into the governance ecosystem.
- Global Impact: Swaap's goal is to empower people globally through decentralized financial tools, ensuring that anyone, anywhere, has access to sophisticated market-making strategies that were once reserved for the elite.
Our protocol is deployed on Ethereum & Polygon at the moment. We will support more chains in the future.
How do I interact with Swaap protocol?
To interact with the Swaap protocol, you will need to follow these steps:
- Wallet Setup: First, you need to set up a digital wallet that supports Ethereum or Polygon, as Swaap is built on these blockchains. MetaMask is a popular choice for this.
- Acquire Native Tokens (ETH/MATIC): Next, you need to acquire ETH (Ethereum) or MATIC (Polygon) which will be used for transaction fees, or "gas." You can purchase such tokens from various exchanges and transfer them to your digital wallet.
- Connect to Swaap: Visit the Swaap platform and connect your digital wallet. This is done through the "Connect Wallet" button.
- Interact with the Protocol: Once your wallet is connected, you can start interacting with the Swaap protocol. This could involve swapping tokens, providing liquidity, or participating in yield farming, among other activities.
What is the cost of interacting with Swaap protocol?
The cost of interacting with the Swaap protocol primarily comes from the gas fees associated with executing transactions on the Ethereum blockchain. These fees are not set by Swaap, but by the Ethereum network, and they can fluctuate based on network congestion.
When you perform actions such as swapping tokens, providing liquidity, or withdrawing liquidity, these actions are processed as transactions on the Ethereum network, and thus incur gas fees. The exact amount of these fees can vary, but you can often set the maximum amount you're willing to pay for a transaction within your wallet application.
It's also important to note that there may be additional costs associated with the specific actions you take within the Swaap protocol. For example, if you're providing liquidity, you'll need to contribute a certain amount of tokens to the liquidity pool.
Please note that while Swaap aims to optimize its protocol to minimize costs and maximize returns for users, all users should do their own research and consider the costs and potential risks before interacting with Swaap or any DeFi protocol.
Where are my supplied funds stored?
When you supply funds to the Swaap protocol, your funds are stored in smart contracts on the Ethereum blockchain. These smart contracts are designed to automatically execute actions based on the rules and conditions set within them.
In the case of Swaap, when you supply funds (or provide liquidity), your funds are pooled together with those of other users in a liquidity pool. This pool is managed by a smart contract, which automatically handles the swapping of tokens, the distribution of fees, and other actions.
It's important to note that while your funds are in the liquidity pool, they are not stored in your personal wallet. Instead, you receive liquidity tokens that represent your share of the pool. You can redeem these tokens for your share of the funds in the pool at any time.
As with all DeFi protocols, the security of your funds is a top priority for Swaap. The smart contracts used by Swaap have undergone rigorous audits to ensure their security. However, as with all blockchain-based systems, there are inherent risks, and users should always do their own research and consider these risks before supplying funds.
Is there any risk?
Yes, as with all investments and financial transactions, there are inherent risks in interacting with the Swaap protocol or any DeFi protocol. Here are some of the key risks to be aware of:
- Smart Contract Risk: While Swaap's smart contracts have undergone rigorous audits by Chainsecurity & Quantstamp, there is always a risk of bugs or vulnerabilities that could be exploited.
- Impermanent Loss: When you provide liquidity to a pool, you could potentially experience impermanent loss. This is a loss that occurs when the price of your deposited assets changes compared to when you deposited them. The loss becomes "permanent" if you decide to withdraw your liquidity. Swaap v1 achieved 0.1% impermanent loss.
- Market Risk: The value of the tokens you interact with on Swaap can go up or down based on market conditions. This could impact the value of your investment.
- Gas Fees: Transactions on the Ethereum network require gas fees. If the network is congested, these fees can become quite high.
- Regulatory Risk: The regulatory environment for DeFi is still evolving. Changes in regulations could impact the operation of DeFi protocols like Swaap.
It's important to do your own research and fully understand these risks before interacting with Swaap or any DeFi protocol. Consider consulting with a financial advisor or legal counsel if you're unsure. Every possible step has been taken to minimize the risk as much as possible-- the protocol code has also been audited.
How does Swaap generate revenue?
Swaap generates revenue primarily through fees collected from the transactions that occur within its protocol. These fees are typically a small percentage of the transaction value and are automatically executed by the protocol's smart contracts.
When users swap tokens, provide liquidity, or engage in other activities within the Swaap protocol, they pay a fee. These fees are used to reward liquidity providers, maintain the protocol, and fund future development and growth.
It's important to note that the exact fee structure may vary and can be subject to changes as per the governance decisions made by the Swaap community. Always refer to the official Swaap documentation or user guides for the most accurate and up-to-date information.
How is the APR calculated?
Learn all about it in Key Metrics
Who is the Swaap team?
The Swaap team is a complementary and international team currently consisting of eight team members. The team is fully doxed, enthusiastic and passionate about DeFi. We build our team on three pillars: Tech, Business and Research. Our tech and business teams are the key drivers in the day-to-day operation of Swaap. They are supported by research partnerships with prominent and leading universities of France and worldwide.
What are your official channels?
How do I get involved?
Getting involved with Swaap is a straightforward process:
- Learn About Swaap: Start by understanding what Swaap is and how it works. You can do this by reading the Swaap documentation, blog posts, and other educational resources available on the Swaap website.
- Join the Community: Swaap has a vibrant community of users and developers. You can join the community on various platforms such as Discord, Telegram, or Twitter. Participating in community discussions can help you understand how Swaap works and stay updated on the latest developments.
- Start Using Swaap: If you decide that Swaap is right for you, you can start by depositing liquidity into the Swaap protocol. This will allow you to earn returns from transaction fees and potentially other rewards.
How does Swaap v2 improve on Swaap v1?
Swaap v2 introduces several significant enhancements over Swaap v1, designed to optimize user experience and maximize returns:
- Sophisticated Market-Making Strategies: Swaap v2 employs mathematically optimized strategies that intelligently balance fees and asset allocations. This approach maximizes returns while minimizing risks, providing users with the benefits of advanced market-making strategies without the associated complexities.
- Partnership with Renowned Institutions: The models used in Swaap v2 are developed in collaboration with the Louis Bachelier Institute, a prestigious Finance Research Institute. This partnership brings the best practices of traditional financial market-making models to the DeFi space.
- Robust Security Measures: Swaap v2 has been thoroughly audited by Chainsecurity & Quantstamp, ensuring a secure foundation for the protocol. Additionally, Swaap v2 introduces innovative defensive modules and on-chain protections, providing users with an extra layer of security.
- Expanded Ecosystem Integration: Swaap v2 enables liquidity providers to interact with a broad range of assets across both the Polygon and Ethereum ecosystems, offering more opportunities for engagement.
- Incentives for Early Participation: To celebrate the launch of Swaap v2, Swaap tokens are being offered to the initial wave of liquidity providers. This initiative seamlessly integrates new users into the governance ecosystem, fostering a sense of community and shared ownership.
What happens to my funds on v1 pools?
First and foremost, we want to assure you that your existing Swaap v1 accounts will not be affected by the launch of v2. You can continue to use the v1 platform if you choose not to onboard to v2. However, we will be shifting our full focus and resources toward developing and improving the Swaap v2 platform. v2 will enhance the Swaap experience in a number of ways.
What about the Retro Airdrop of v1 Swaap tokens?
Swaap will be implementing a Retro Airdrop for v1 Swaap tokens as a way to reward early users of the protocol. If you were an early user of Swaap v1, you may be eligible to receive an airdrop of v1 Swaap tokens.
This Retro Airdrop is Swaap's way of showing appreciation to its early supporters and users. Details about the claim process, including eligibility criteria and specific procedures, will be communicated at a later time.
Please be aware that the eligibility criteria and distribution details for the Retro Airdrop may vary. For the most accurate and up-to-date information, please refer to the official Swaap announcements or contact the Swaap support team.
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