Minswap is a multi-pool decentralized exchange on Cardano.Swap tokens with minimal cost, minimal time and maximal convenience.
We aim to bring an innovative multi-model asset pool decentralized exchange to the Cardano blockchain. Minswap aims to be the best liquidity provider on the market by integrating the best asset pool models from across the DEX ecosystem into one protocol. The combination of stable pools, multi-asset pools, and concentrated liquidity will benefit both traders and liquidity providers. We are fair launch with no pre-sales. This ensures our community of users are maximally rewarded, not speculators and insiders.
Minswap offers a different approach, for instance see the features highlighted in our Whitepaper such as: multi-function liquidity pools, multi-pool routing, functioning as an on-chain price oracle or automatic babel fees redemption. We also focus more on building instead of fundraising. However, since no DEXs have launched or provided test-environments comparisons are difficult.
- Minswap will focus on developing multiple kinds of AMM liquidity pools and allow a user's trade to route through the most efficient pools (this multi-pool routing feature could later be turned into a DEX aggregator).
- We will also roll out features that help to develop the Cardano ecosystem, like an IFO launchpad that allows other projects to launch their tokens safely without fearing IDO sniping bots. We will also have an SPO-friendly delegation policy that helps the decentralization of the network. We aim to be the best platform for new projects to list their token, and for their community to buy and support them.
Traditionally, order-book centralized exchanges have been backed by market makers. Market makers are usually large trading firms or brokerage houses with massive capital, financial knowledge and regulation compliance. They facilitate high liquidity on centralized exchanges and earn profits via the trading spread(difference between buying and selling prices). However, the rise of decentralized exchanges and DeFi has popularized the concept of Automated Market-Making(AMM) which allows individual retailers to easily become market makers and earn profits from trading fees.
On an AMM exchange, individual market makers - now called liquidity providers (LP) pool their funds together to become a single large automated market maker. Traders can trade tokens on these liquidity pools based on a deterministic algorithm. Though being convenient and suitable for on-chain smart contracts, AMM introduces their own classes of problems, namely impermanent loss, low capital efficiency and front-running. These problems are being tackled in different ways by projects on Ethereum blockchains, with different trade-offs. However, no such DEX is being developed on Cardano ecosystem, let alone an optimized AMM.
Having different AMMs for different use cases also confuses non-savvy users and that introduces DEX aggregator such as 1inch or Matcha but they charge additional service fees.