VeraSwap Protocol - The Automated Market Maker

annieben (58)in #crypto • 3 years ago

The demand and supply of assets were historically made known using an order book. This centralized way of work made use of systems which dwel on matching participants buy orders with their sell orders on exchanges.

The need to decentralize this approach has led to the development of an algorithmic system of matching buy and sell orders using smart contracts. The Automated Market Maker (AMM) is what this decentralized exchange is called.

The AMM makes use of mathematical formula to ascertain the prices of assets using a pricing algorithm. Several protocols have their various formula used in deciding these prices based on their use cases, however, all AMMs regardless of formula difference have the common attribute of determining prices algorithmically.

At VeraSwap Protocol, the aim as an AMM is to provide an on-chain staking protocol that is fully decentralized and allows the earning of rewards by users from swapping of tokens to participating in liquidity pools.

Some features of the Veraswap Ecosystem include :

Creating a market or providing a means of adding liquidity to other pools.
Encouraging users by providing the means of staking Vrap token to earn rewards based on certain APY offering.
There are more tools that are placed with user’s pleasure in mind. Like analytics and voting.
Then there is the obvious feature of being a means of exchange for other BEP20 tokens to BNB and vice versa.

The Vrap token is the native token of the Veraswap Ecosystem. It will be used as the deciding factor on decision making for voters as well as the basis for major rewards in the Ecosystem. This Bep20 token on the BSC is guaranteed to work in the Ecosystem and other decentralized programs.