Cardano is amongst the most popular blockchain projects among decentralized applications (DApps) developers. ADA, the native cryptocurrency, is currently the fifth-largest cryptocurrency by market cap, according to CoinMarketCap.
Nonetheless, Cardano is not all rainbows. Cardano has one major drawback. The blockchain network does not have a native decentralized exchange or a launchpad, and thus, Cardano users have to rely on centralized exchanges.
AdaSwap aims to solve this problem and take the Cardano ecosystem to new heights.
AdaSwap will create a decentralized exchange (DEX) for the Cardano network allowing users to easily swap Cardano-based tokens. Not only this, but AdaSwap will also build a dedicated launchpad for Cardano projects and also their native NFT marketplace.
Keep reading. In this article, we will discuss AdaSwap in detail to find out how AdaSwap aims to change the Cardano ecosystem and why it is important.
About AdaSwap
AdaSwap is a Cardano ecosystem builder that will create several products for the Cardano network, encouraging more and more people to use the Cardano blockchain.
To achieve this, AdaSwap will initially launch four distinct products –
- An automated market maker (AMM) based decentralized exchange (DEX)
- A dedicated launchpad for helping developers to build applications on the Cardano blockchain
- A native NFT (non-fungible token) marketplace
- Fixed, long-term, high-yield liquidity pools called Stake and Forget (S&F)
With these applications, AdaSwap users will be able to sell NFT artwork, stake tokens, launch projects, and earn high interest.
AdaSwap Token (ASW)
AdaSwap token (ASW) is the native utility token of the AdaSwap platform that will fuel all the functions in the Cardano ecosystem. ASW tokens are a Cardano Native Token (Asset), making them easily interchangeable with other Cardano-based tokens.
Talking about the benefits of holding ASW tokens, users will be able to easily swap tokens on the AdaSwap DEX and leverage arbitrage opportunities in real-time. Most importantly, ASW token holders will save on transaction fees as AdaSwap offers free services to their token holders. AdaSwap calls this Free Financial Model (FMM) wherein ASW token holders will not be charged; no participation fee, no transaction fees, or any other charges.
Furthermore, AdaSwap will occasionally reward ASW token holders with airdrops.
Everything You Need To Know About AdaSwap Products
1. Decentralized Exchange (DEX)
AdaSwap is the first automated market maker (AMM) built on the Cardano blockchain. AdaSwap DEx will allow you to swap cryptocurrency tokens and stake your funds in liquidity pools to earn fees.
For a little background, AMM facilitates trades using smart contracts; the technology doesn’t use order books. In an AMM model, liquidity providers deposit funds in a liquidity pool smart contract. These liquidity pool smart contracts fill trades on the DEX. To provide liquidity, the liquidity providers are rewarded with a portion of transaction fees depending on their share of deposited tokens in the liquidity pool.
AdaSwap DEX facilitates token swaps in a completely decentralized and non-custodial way. This implies you swap crypto tokens without giving up custody of your assets to the platform. As AdaSwap DEX follows an AMM model, the decentralized exchange eliminates all intermediaries making token swapping a smooth process.
As discussed, if you are an ASW token holder, you can use AdaSwap DEX for free.
2. Launchpad
The AdaSwap Launchpad claims to build an interoperable decentralized finance (DeFi) ecosystem on the Cardano blockchain by helping promising projects with funding.
For this, the AdaSwap Launchpad solves the scam issue, the major roadblock that stops investors from funding blockchain projects. The AdaSwap Launchpad will examine the projects on several metrics – team, tokenomics, use cases, roadmap, updates, business development, and community activity, among others.
The projects that qualify AdaSwap’s strict review process will be listed on their platform, thereby assuring investors of the legitimacy of the listed projects.
The AdaSwap Launchpad aims to create a win-win situation for both the stakeholders – the investors get to fund legitimate projects, and the decentralized application (DApp) developers get to easily raise and exchange capital for developing their projects.
AdaSwap is the first Cardano dex project to start its onboarding process.
3. NFTs
AdaSwap will create an in-house NFT collection as well as a dedicated NFT marketplace to promote their project. They will launch their NFT project in two stages.
In the first stage, AdaSwap will launch their Graffiti NFT series created by some prominent artists. AdaSwap anticipates massive participation from people as Israel is well-known for its Graffiti culture. To create buzz around their project, AdaSwap will give away 10 copies of their exclusive NFT artwork to their social media followers.
Next, AdaSwap will launch its native NFT marketplace allowing more people to join their NFT ecosystem.
4. Stake And Forget (S&F)
AdaSwap will offer Stake and Forget liquidity pools for fixed and long-term staking. This liquidity pool is directly linked to AdaSwap’s launchpad allowing non-active traders to make money by funding emerging Cardno projects.
If you stake in S&F liquidity pools, you will get regular ROI, plus bonus rewards for stakers to provide capital to projects listed on the AdaSwap Launchpad.
Projects listed on AdaSwap will be required to pay a small fee for using the platform. This fee will be distributed to S&F liquidity pools. These funds will be locked for the mentioned staking period. After the staking period, the rewards will be airdropped to the S&F liquidity providers. This is one of a kind automated airdrop mechanism.
In A Nutshell
The Cardano is amongst the most popular blockchain projects out there. However, the Cardano network does not have a decentralized exchange for allowing the seamless exchange of Cardano-based tokens, nor does it have a launchpad to help Cardano projects raise capital and boost their development.
AdaSwap aims to solve all these issues by launching a Cardano native DEX and launchpad, thereby bringing more users to the Cardano ecosystem. The project will also launch their NFT collection and marketplace along with their Stake and Forget liquidity pools.
AdaSwap provides exclusive benefits to their ASW token holders such as 0% fees, access to launchpad projects, and airdrops.
References
https://adaswap.app/AdaSwap-Whitepaper.pdf
https://www.reddit.com/r/CryptoMoonShots/
