How Multichain DEXs are Shaping the Future of DeFi 

Multichain DEXs

The rise of cryptocurrencies promised a decentralized future. But it was with the rise of decentralized exchanges (DEXs) that this future really started unfolding. DEXs gave users the taste of truly owning their assets and being able to trade them in a trustless, permissionless manner. So naturally, they became quite the rage causing the total volume locked in DeFi (decentralized finance) protocols to touch a whopping $78.7B in March 2021. 

In September 2020, Ethereum-based UniSwap became the fourth largest crypto exchange by volume, displacing CEX (centralized exchange) giant Coinbase. Despite all this success, DEXs aren’t yet the priority for traders. 

This is because popular DEXs like Uniswap, Pancake Swap, and Serum are limited to a single blockchain network. Though individually successful, being limited to a network restricts their growth. Traders have to use multiple platforms to trade tokens across blockchains. 

Further, problems like high gas fees, network congestion, and low throughput are ever-present. For DEXs to circumvent these problems and compete with CEXs for a place on the top, they must operate in a blockchain-agnostic manner. This is exactly what SnowSwap aims to do.  

The Multi-Platform AMM DEX

At first glance, SnowSwap might seem like any other DEX out there. Users can buy, sell, and trade tokens, and liquidity providers can add liquidity for a handsome APY. It’s permissionless, allowing any and all projects to list their token on the exchange. That’s all the regular stuff.

When you look closely, you’ll realize that SnowSwap is cut above the rest. It is a next-generation multichain AMM DEX that can be the future of DeFi. SnowSwap has managed to optimize all the functionalities of a DEX in a way that is beneficial to the entire DeFi space.  

Being multichain makes a world of difference for traders and DeFi projects listed on SnowSwap. It opens the doors to the wider DeFi ecosystem out there. Instead of opening up to a single blockchain network, its users, and projects, DeFi projects can attract users from across the entire blockchain sphere. 

Traders, on the other hand, can circumvent all the problems faced on popular DEXs and benefit from high throughput, low gas fees, and the ease of trading tokens across platforms. Yield farming is also highly rewarding on SnowSwap due to its unique smart lock and release mechanisms. Traders can also be assured of liquidity because the platform aims to provide aggregate fragmented liquidity from AMMs of all blockchain networks. 

SNO Tokens and the Ecosystem 

SnowSwap’s native utility token SNO ($SNO) is the project’s backbone and offers the means for developing a complete ecosystem around it. SnowSwap plans to launch lottery games, a prediction market, and an NFT marketplace that will use SNO at its core.  

The tokenomics of SNO are also unique when compared to other popular DEXs like Pancake Swap. CAKE has higher token inflation and no cap on its maximum supply. Contrarily, SNO has a maximum supply of 1 billion tokens combined with a robust mechanism for burning, profit-sharing, and continuously adding liquidity. All the profits made in the SnowSwap ecosystem will be used to buy back SNO from the market to ultimately increase its value. 

The token is designed such that long-term farmers, stakers, liquidity providers, and holders of SNO can hugely benefit from its tokenomics. 60% of the transaction fees will be split between holders and liquidity providers, allowing them to earn a sustainable passive income. With high selling fees of 5%, the platform encourages users to hold the token and build a sustainable liquidity system. Furthermore, the platform burns a percentage of tokens for every transaction, thus, decreasing the supply and increasing value. 

The Scope of Success

Multi-platform or multichain DEXs like SnowSwap have only just come to the marketplace, and the scope of their success remains to be seen. But given that one of the main selling points for CEXs is their multichain functionality, we can say that SnowSwap has hit the bullseye with its vision. By making it easier for users to trade across the DeFi ecosystem with a high transaction rate and low transaction fee, SnowSwap is on the right track to compete with popular DEXs and CEXs alike.  

If implemented well, SnowSwap could bring popular blockchain networks a lot closer and facilitate seamless interaction within the DeFi sphere. 

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