CypherSwap: A Unique Decentralized Exchange
Like bitcoin and blockchain, DeFi withstood the barrage of assaults sent its way. The bubble labels have since fallen by the side. Many consider the introduction of such disruptive financial products as unhealthy for the sector. Security concerns have surfaced, no thanks to the countless exploits of certain DeFi protocols. Nevertheless, DeFi has its upside. The trustless conduction of transactions eliminates the expensive middlemen, one of the failings of traditional finance.
CeFi also has its strengths. Faster transactions and a secure framework are the perks of this aspect of the financial sector. You can’t ignore the clean bill of health conferred on traditional finance institutions by regulatory agencies.
The growth of the finance sector requires a synergy of CeFi and DeFi. Central Banks in many countries of the globe are looking to leverage the innovation of DeFi towards revamping the ailing financial sector.
Cypherium, a blockchain dedicated to bridging the gap between DeFi and CeFi, introduced its decentralized exchange, CypherSwap. Like a typical DEX, CypherSwap relies on liquidity providers to handle transactions. These stakeholders get 0.3% of the fees paid on every trade. On CypherSwap, market makers don’t call the shots on the pegging of prices of assets. This sets the DEX apart as its reliance on AMMs delivers flexible prices, reflecting the current market situation.
Unlike most DEXs on the blockchain, CypherSwap caters to a wide array of cryptocurrencies and networks. Cypherium’s compatibility with all the major blockchains trickles down to its CypherSwap.
You can trade tokens across different blockchains without relying on the highly expensive bridge system. CypherSwap achieves this through the input of the Cypherlink Connector and the Cypher nodes. CypherSwap manages to maneuver the delays in transaction time and the risk attached to trading cryptocurrencies of different blockchains; an attribute lacking in popular DEXs on different blockchains.
CypherSwap achieves that feat through the request for pledges in the blockchain’s native token, CPH from liquidity providers and traders. Each party has to submit a pledge, which tallies with the asset value in question. Many might argue that burdening liquidity providers and traders with making ‘pledges’ in a transaction puts a strain on such critical stakeholders.
Perhaps they’re not wrong, but the pledge concept does a few things: it’s a confidence booster for the CypherSwap DEX while giving CPH some much-needed use case.
The pledge request varies with the size of the transaction, so it’s not set in stone the quantity of CPH required. Does the reliance on a pledge mechanism complicate things for CypherSwap? Maybe it does. However, sacrifices are often needed for innovation and efficiency to thrive.
Despite the seeming complexity, CypherSwap has functionalities that should put it ahead in the pecking order. The DEX’s highly flexible framework — that supports the order book model — is something that will pile pressure on other DEXs. Trading, using an order book, gets users the precise asset price they seek — and it’s not going out of fashion anytime soon.
CypherSwap captures the interest of liquidity providers as well. The DEX’s capacity to provide LP holders with the most profitable liquidity pools is something unseen among currently existing DEXs or De-Fi entities in general.
Since CypherSwap is powered by the Cypherium network, developers are afforded more leverage in the logic interface. These experts can say farewell to the massive time spent on development without the frequent undesired errors experienced elsewhere.
Cypherium’s introduction of its CypherSwap will be revolutionary. The blockchain aims to bring the De-Fi benefits to the more conservative CeFi space. And its DEX has several amazing features that will make a difference.
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