InfinitySwap is the next-generation decentralized cryptocurrency exchange (DEX).
InfinitySwap is the next-generation decentralized cryptocurrency exchange (DEX). It takes inspiration from Uniswap V2's elegant design and innovative use of automated-market-makers (AMM) instead of traditional order books. Moreover, thanks to the Internet Computer Protocol's (ICP) direct integration with Bitcoin's blockchain, InfinitySwap traders (InfiniSwappers) are empowered to wield the value of Bitcoin in combination with the boundless utility of smart contracts.
Doubtless, all that may sound like technobabble, but the underlying concepts are easy and important to understand. My aim here is that by the end of this article, you'll be able to explain exactly why InfinitySwap is revolutionary and make an informed decision about recommending our Bitfinity Wallet to your friends.
Let's get started!
What is an Order Book?
An order book is just what it sounds like — a book that records buy and sell orders for a particular asset. It also has a section for asks and bids, usually colored red and green, respectively. Matching engines automatically sift and fulfill buy and sell orders, whole or in part, according to customers' specified price ranges.
Cryptocurrency exchanges often use various visualization approaches, such as tables, line charts, bar charts and Japanese candlesticks, to show interaction between buyers and sellers. This helps traders make informed decisions at a glance. Most order books put the highest bid prices and lowest ask prices at the top, and the difference between them is known as the bid-ask spread, which indicates the asset's supply and demand strength.
What is an Automated-Market-Maker?
In contrast to an order book, an automated-market-maker (AMM) is a liquidity pool that automatically sets prices based on the amount of liquidity within the pool (supply) and the amounts requested from the pool (demand). Thus, buyers and sellers do not set their own prices. Shearson Lehman Brothers and ATD introduced AMM's in the early 1990s to help solve problems caused by human market makers, including maket manipulation and slippage and latency in price discovery.
InfinitySwap's AMM allows InfiniSwappers to buy and sell digital assets without the need for a third-party intermediary. InfiniSwappers can purchase and sell crypto assets in a trust-less, peer-to-peer fashion, which is incredibly important in an era during which the limitations and risks of centralized exchanges have become widely known across the crypto community.
How will InfinitySwap Revolutionize DEX?
DEX has come to rely on AMM, but here's what sets InfinitySwap's AMM apart:
- Self-Minting Tools: Its user-friendly self-minting feature, which allows project creators to mint their own tokens without the need for technical or coding knowledge.
- Omni-Chain Interoperability: Its cross-chain trade permission-less interoperability, thanks to ICP's direct integration with a growing number of other blockchains.
- Start-Up Incentives: Its novel use of Liquidity Bootstrapping Pools (LBP), which help alleviate financial burdens for new start-ups by adding tokens with lower capital requirements than a regular liquidity pool.
- ICP Token Standard Support: Its AMM is proud to be the first DEX to support the DFINITY-backed, official Internet Computer ICRC-1 token standard.
Let's break down what all this means, point by point.
Most DEX do not include the tools needed for users to easily create their own digital assets for others to buy and sell. InfinitySwap addresses this problem directly. Our mint-your-own-tokens feature allows everyone, regardless of technical skill level, access to token creation. The Internet Computer is meant to be a public blockchain for everyone, and our exchange is likewise meant to empower all people and offer an inclusive and fair marketplace.
InfinitySwap's marketplace will offer limitless possibilities for cross-chain token interoperability, thanks to how it leverages ICP's Bitcoin integration and will leverage other direct, bridge-less blockchain integrations as they become available. Trading Ethereum tokens on the Internet Computer or making your Internet Computer tokens transferable to other chains will be as simple as clicking a button - without the need to worry about gas fees!
Similar to Balancer on the Ethereum network, InfinitySwap provides a newer and better solution for early developers called Liquidity Bootstrapping Pools (LBPs). LBP's can calibrate how a liquidity pool is weighted over time to optimize configurations for new tokens to mitigate price volatility during their preliminary stages of release. What new project doesn't want some built-in stability?
ICP Token Standard Support
The Internet Computer's ICRC-1 token standard enjoys almost universal consensus and was voted the official token standard for ICP. The ICRC-1 token standard is secure while remaining scalable, two musts for community adoption. It has a modular design, which will allow extensions in the future as the need for modification arises. At the same time, this built-in modular structure will ensure that backward compatibility is safe. And, InfinitySwap is the first DEX to fully support ICRC-1!
Conclusion: To Bitfinity, and Beyond!
InfinitySwap is not only the next-generation DEX, but it also uses a next-generation AMM (automated market maker). By downloading our newly rebranded Bitfinity Wallet dApp, you'll gain premiere access to a platform to create, stake, and swap coins on the Internet Computer — soon to be the Internet of blockchains. Join us as we pioneer the development of crypto market-makers!
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*Disclaimer: While every effort is made on this website to provide accurate information, any opinions expressed or information disseminated do not necessarily reflect the views of Dfinity Community itself.
Originally published on the InfinitySwap blog: https://www.blog.infinityswap.one/infinityswap-the-next-generation-automated-market-maker/