EFi is committed to bring a complete DeFi infrastructure to EOS public chain. It has already launched Diamond and eHUB, and now we are proud to announce the next upcoming project — DolphinSwap.
DolphinSwap is an AMM similar to Uniswap, but with many differences.
A Uniswap-like DEX
Uniswap provides instant swapping services in a decentralized way, allowing users to swap among various tokens. The trade can be complete without a counterparty. It has seen a number if Uniswap-like DEXes on EOS, including Defibox and Defis, which all adopt an AMM mechanism with a fixed product algorithm. Uniswap-like DEXes are easy to use, but have some shortcomings. One of the shortcomings is that liquidity of both tokens require a fixed ratio of 1:1, which means that every time 100 EOS is provided, a certain amount of USDT or other assets of the same value needs to be provided to make the market established. The mechanism is always criticized as having limited asset allocation flexibility and high unexpected asset loss.
DolphinSwap — A Generalized Swap
A more flexible market making protocol is required if market makers want a more flexible market making solution. And we are proud to present you DolphinSwap, which is able to support more than 2 tokens and customize the liquidity ratio. In other words, in the EOS-USDT pool, the same value of EOS and USDT is no longer required, and users are allowed to customize the ratio. Of course, if the liquidity provider sets a ratio of 1:1, it won’t be different from Uniswap.
Rewards for Liquidity Providers
DolphinSwap will distribute the transaction fees of a liquidity pool to the liquidity providers as a long-term market making reward.
DolphinSwap’s transaction trading fee will be paid 80% to the liquidity provider, 15% will automatically repurchase DOP and burn it, and 5% will be used to repurchase DMD and hand it over to DMD-DAO for processing.
Liquidity Mining in DolphinSwap
Genesis Mining will start two weeks in advance of the launch of DolphinSwap and distribute DOP rewards to liquidity providers of certain trading pairs, which include the following in the first round:
To ensure a long-term development of EFi ecosystem, 85% of the tokens generated by mining are awarded to participants and liquidity providers, 10% of DOP will be allocated to the developer fund for the long-term development of DolphinSwap, and 5% will be allocated to Diamond Vault to reward the funding provider of Diamond machine gun pool.
* More details will be released before the launch of DolphinSwap.
Development Plan of DolphinSwap
The development plan of DolphinSwap is divided into three stages.
1st stage: Release DOP liquidity mining and distributing rewards to market makers.
2nd stage: Launch of the Uniswap-like exchange.
3rd stage: Release a generalized Swap, with customized market making ratio and transaction fees.
Uniswap以去中心化的方式提供了即时兑换的方式，让用户可以在不同的代币之间进行交易，无需对手方，交易可以立即成交。EOS已存在一些类Uniswap的DEX，例如Defibox，Defis，均采用固定乘积算法的AMM。类Uniswap DEX使用简单，但是一定短板，其每个交易对必须按照固定1:1的比例提供流动性，也就是说，比如每次提供100 个EOS，就需要提供对等的USDT或其他资产才能进行做市，资金分配不灵活，无常损失较高。
为了EFi生态可以更长期的发展，挖矿产生的代币中10% DOP将分配给开发者基金用于DolphinSwap的长期开发工作，5%将分配进入Diamond Vault，用于奖励Diamond机枪池资金提供者