belongs to a token exchange protocol built on Smart Contracts, also known as decentralized finance (DeFi). The biggest feature of the decentralized trading platform is the elimination for the participation of third parties in blockchain finance through the usage of Smart Contracts to achieve financial decentralization.
Unlike a centralized trading platform in the form of an order book, there is no order book in USwap. The exchange rates of tokens are determined by POOL, which means that price fluctuations are determined based on user transaction volume, thus improving fairness and price efficiency.
Transactions in general trading platforms and traditional stock markets are conducted via order books, which means that buyers and sellers define their orders separately. Buyers typically want to buy at the lowest price, whilst sellers aim to sell at the highest price. In such situations, both parties may not reach a consensus, rendering transactions incomplete.
During such a time, a Market-Maker must appear to facilitate transactions where it will accept buy and sell orders to generate liquidity, thus allowing users to trade without the other party’s appearance.
In USwap, every user may become a Market-Maker or Liquidity Provider (LP) to provide liquidity for USwap. The LP possess the simple role of creating UNIH-stablecoin trading pairs to increase the pair’s reserves. With more UNIH reserves, the trading price of stablecoins are more balanced, and paired tokens possess higher liquidity.
At present, decentralized trading platforms in cryptocurrency must link to third-party wallets to complete transactions. In that respect, USwap will incorporate its own DeFi wallet – D.E.S
D.E.S will provide cross-chain services, which means that traders may store more than one type of digital currency in D.E.S. For example: Users may store both Ethereum or Bitcoin in D.E.S. The cross-chain model is designed to solve the inability to communicate between differing chains in blockchain. Simply put, it is impossible to conduct direct transactions between different main chains. The wallet model created by D.E.S through cross-chain technology aims to solve this major issue by allowing traders to store a variety of digital currencies to facilitate transactions between multiple types of digital currencies.
In the world of DeFi, a critical shortcoming is that DeFi transfer fees are high with less than adequate transfer speed which is a problem shared among traders.
D.E.S aims to solve this problem with the introduction of Lightning Network technology designed to address Bitcoin trade congestion problems by optimizing transaction speeds through off-chain transaction models. With D.E.S, Lightning Network transactions will complete the exchange of digital assets between traders in real-time.