The new paradigm
CHADSWAP (chadswap.finance) is a cross-chain automated market maker (AMM) built for the modern DeFi ethos — transactions should be able to flow smoothly across blockchains in a trustless, decentralized manner. As the Polkadot ecosystem matures, this goal becomes ever more attainable.
To facilitate the movement of economic activity into the wider blockchain universe, CHADSWAP will operate in three phases:
PHASE I: Liquidity mining — liquidity providers will be able to mine STACY, the governance token for CHADSWAP, over an approximately 3–6 week period by staking LP tokens. Details of STACY mining will be released in a future article.
PHASE II: Ethereum-based AMM — all liquidity will be migrated from Uniswap over to CHADSWAP’s ethereum-based AMM. This AMM will have several advantages to Uniswap detailed below.
PHASE III: Cross-chain AMM — as the Polkadot ecosystem matures and parachain swap standards become defined, we will migrate all liquidity in our ethereum-based AMM to wrapped equivalents on polkadot and enable swaps between these wrapped equivalents, parachain tokens, and wrapped tokens from other blockchains.
The Chaddest of Collaborations
Our roadmap is ambitious and, though chads always win, there’s no reason they have to do it alone. We’re happy to announce that we have partnered with meter.io to build out the full CHADSWAP roadmap.
Meter was founded in May 2018 and has built an EVM-compatible blockchain with steroid HotStuff consensus and a currency pegged to the price of electricity. This chadworthy team is now branching into the AMM space after the recent DeFi explosion.
During initial phone calls, we realized that the roadmaps for CHADSWAP and Meter’s proposed AMM were virtually identical — making this collaboration a match made in Chadhalla.
CHADSWAP is superior to Uniswap
Uniswap’s AMM model unfairly penalizes liquidity providers, allowing traders to profit off of arbitrage fees at their expense. Our Phase II Ethereum-based smart AMM fixes this issue by using Chainlink oracle-based reference prices to guide AMM price quotes. In addition, the AMM design will allow adding or removing liquidity using only one coin in the liquidity pool. Stay tuned for more details on the inner workings of CHADSWAP’s smart AMM.
For coins which do not have a Chainlink reference price available, CHADSWAP will default to Uniswap’s model. As oracle services become more widely available we will transition more and more coins to the improved model.
True chads who hold CHADS and eMTRG will benefit from fee discounts on CHADSWAP. Additionally, CHADS, STACY, and eMTRG holders will split a portion of the trading fees from the platform.
Chads.VC and Meter’s collaboration on CHADSWAP is integral to our mission of chadifying the cryptoverse. We look forward to working with our new chadbros in making crypto just a little bit more awesome.
