Bridgeswap: A Decentralized Exchange That Allows to Instantly Swap Crypto Tokens

 

Introduction

Decentralized exchanges are apps built on a blockchain that facilitates the trading of tokens between many users without any middleman or intermediary. This is made possible by the power of smart contracts. Smart contracts are programs written on the blockchain that perform certain actions automatically once certain requirements are met.

The main goal of the Decentralized exchange is to allow people to freely trade digital assets with themselves without any intermediaries as we see with traditional banking. So, DEX allows regular people to have total control of their digital assets, giving them the freedom to do business with others anytime.

When people use a DEX, they hold their crypto assets in their wallets and not in a custodial wallet of the exchange. When a user wants to trade crypto assets on a DEX, he only connects his wallet to a pool of crypto assets on the DEX. Once he completes a transaction, he disconnects his wallet from the Dex and keeps the assets in his wallet.

The operation of DEX is the exact opposite of Centralized exchange -CEX. On CEX, users need to transfer their crypto assets to a CEX’s custodial wallet before they can trade. This way the CEX is holding the user’s crypto asset. The CEX stores the user’s crypto asset on its central database.

On a CEX like Coinbase and Binance, the conventional order book is used to match buyers to sellers based on order prices and volume. In DEX, book orders are not used. Instead, the liquidity pools are used. Liquidity pools are pots of crypto assets put on the DEX’s blockchain. Independent investors called liquidity providers source these liquidity pools. Liquidity pool providers earn a yield in a form of transaction fees charged to people who use the pool.

When a user trades on a DEX, the smart contracts written on the DEX blockchain automatically release the crypto asset from the liquidity pool into the user’s wallet. This concept is called Automatic Market Making. So DEX acts as an automated Market Maker.

About Bridgeswap

Bridgeswap is a decentralized exchange that allows you to instantly swap crypto tokens, provide liquidity, and stake to earn rewards in the form of yields. The goal of Bridgeswap is to bridge Defi on Web 3.0 from traditional finance in a decentralized way to create a fair global economy that is sustainable, accessible, and community-driven DAO. To achieve this, Bridgeswap has come up with four innovative products that include: Bridgeswap trade, Bridgeswap farms, Bridgeswap pools, Bridgeswap Defi 2.0 zap, and Bridgeswap lottery.

Most Defi protocols struggle to get enough liquidity for their protocol’s operation. So there’s a constant battle among various Defi protocols for liquidity for services like yield farming, staking, borrowing, etc. Defi protocols rely on the liquidity of their protocol users for their operation. They rent liquidity for their operations and don’t own the liquidity. This comes with a lot of challenges.

Bridegswap’s solution to this problem is the Defi 2.0 zap. This new and unique system lets liquidity providers swap their liquidity pools for discounted Bris tokens. Bridegswap gets its liquidity from this system and wouldn’t have to solely rely on liquidity providers for our liquidity pools. The liquidity gained from Defi 2.0 zap is stored in a designated wallet as a reserve. Bridgeswap can fall on this liquidity when needed. This accumulated liquidity ensures liquidity longevity, thereby avoiding the liquidity problems most Defi protocols face in the long run.

On the other side, this system serves as an incentive for liquidity providers to get Bris tokens at a lower price. This is a great deal since liquidity providers can sell these discounted tokens at much higher prices for handsome profits, assuming the Bris token price skyrockets. Therefore, it is a win-win case for both liquidity providers and Bridgeswap.

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WEBSITE: https://bridgeswap.app/

TWITTER: https://twitter.com/bridgeswap_dex

MEDIUM: https://bridgeswap.medium.com/

TELEGRAM: https://t.me/bridgeswap

<<<<AUTHOR INFO>>>>

BTT Username: hoka90

BTT Profile Link: https://bitcointalk.org/index.php?action=profile;u=3284226

Bep-20 address: 0x3befa9d77472f32c26b9e2cf306da3a32231f42b