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GETTING STARTED
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ℹ️ Introduction
Overview of AshSwap and the reasons behind it.
Quick Grasp
AshSwap is a decentralized exchange built on Elrond that helps users trade between stablecoins with low slippage and small fees.
Not just that, it also aims to bring DeFi to a new level where users are benefited from enhanced yield dynamics and special token use cases.
Stablecoins and the problem
As much as people like to use volatile assets like Bitcoin as a means of exchange, stablecoins still seem like a better choice for daily transactions. Stablecoins now act as a hedge against volatility, a safe shelter for traders, or an entry for new crypto users. There are many types of stablecoins:
- Fiat-backed: USDC, USDT
- Crypto-backed: DAI
- Algorithmic: UST, FRAX
Different stablecoins provide different use cases in DeFi, which contributes to the prosperity of DeFi as a whole. Sounds great, but there's a problem, what if we want to trade those assets? Prominent AMM DEXs like Uniswap V2, Sushiswap, Bancor, or Balancer all use a method called Constant Function Market Makers (CFMM), or a modified version of it. This works great for normal assets but does not work as well for swapping between stablecoins (or assets that have similar prices like WETH/sWETH), because it results in a high slippage. It is unacceptable for people to swap 1 USDC only to get 0.9 USDT.
To maintain a small enough slippage requires an enormous amount of liquidity (token/money) in the pool, which is not optimal as most of the liquidity is left untouched, and the fees shared between liquidity providers are not so great.
Solution
Not only does stable-swap AMM provide stablecoins traders peace of mind with peace of mind, but it also unlocks a whole new set of use cases of which we will take advantage and bring DeFi to a new level.
On Elrond
Why do we choose to build on Elrond?
- We have tested multiple layer 1 blockchains, and Elrond stands out to be one of the most scalable ones.
- A bigger reason is that Elrond's vision is to bring the next 1 billion normal users to blockchain and decentralized finance, and that resonates with us the most.
- Now that Elrond's ecosystem is slowly coming to light, we see the lack of a stable-swap DEX, so we figure why not build one.
Resources
Guides: Jump right in
Follow our handy guides to get started on the basics as quickly as possible:
Fundamentals: Dive a little deeper
Learn the fundamentals of MyProduct to get a deeper understanding of our main features:
Last modified 2mo ago