YouSwap is an All-Eco DEX project created by the blockchain geek team based in Singapore. YouSwap is a new generation of on-chain DEX platform, which realizes multi-chain sharing of digital assets by constructing a multi-chain deployment system, optimizes the AMM model by the price feeding mechanism of Oracle, simultaneously meets the swap requirements for optimal price and low slippage with the multi-chain aggregation trading function and adopts the Layer 2 scalability solution of ZK Rollup in the early stage with respect to the extension of public chain performance. Compared with other decentralized exchanges, YouSwap has many advantages, such as high fund utilization, low slippage, reduced exposure to impermanent losses, instant trading, low Gas fee and so on. In the next stage, YouSwap will continue to increase R&D input to explore the decentralized cross-chain technology, so as to drive the smart scene applications based on multiple-chain integration and create the seamless exchange and interoperability of multi-chain primitive assets.
l Multi-chain Deployment
YouSwap supports the deployment of multi-chain architecture (currently supports mainstream DeFi public chains such as ETH/TRON/BSC/HECO), and the protocol is completely open source. The system construction of YouSwap V1 version will take the lead in docking on the two public chains of Ethereum network and TRON main network (the deployment of YouSwap in BSC and Heco will be launched in V2 version due to the development period). YouSwap also accessed mainstream wallets such as MetaMask and DApp browsers in a short time, thus providing users with safe and convenient decentralized transaction services. YouSwap opened up the ecology of various public chains and brought the traffic in the prosperous ecology of various public chains to YouSwap. YouSwap has its own independent ledger data (i.e., block data) in each chain, and transactions in different chains are executed in parallel without affecting each other.
l Multi-chain and Cross-chain Aggregation Trade Function
At present, YouSwap’s aggregation trade technology integrates all kinds of DEX liquidity and pricing with DEX service providers in four public chains, compares the optimal prices in different exchange protocol, and provides users with optimal trading and minimum slippage. For example, when a user enters a trade, YouSwap first finds a DEX platform with this currency in multiple chains: Ethereum, TRON, BSC and Heco. When the user submits the exchange, YouSwap backstage may split the order into multiple orders according to the optimal trade matching degree. For instance, 70% of them are completed on Sushiswap, and the remaining 30% are completed on Balancer. Moreover, when the aggregator finds that the trading pair selected by the user has insufficient liquidity in most DEX, it is also possible to complete the trade through trade bridging.
l Smart Liquidity Mining System
Customization of Liquidity Pool. The liquidity pool has a public pool and a smart pool. All the parameters of the public pool (such as token weight) have been set when the liquidity pool was created, allowing anyone to provide liquidity to the pool, such as DEFI project and Polkadot ecological project. The YouSwap smart pool is controlled by smart contracts, allowing the controller to respond to real-time data on the blockchain, and can customize the currency, proportion and exchange fee rate of the working capital pool; Second, automatic mining with fluidity. YouSwap is a smart automation platform free of custody for DeFi applications, on which the liquidity parameters of deletion, addition, sale and withdrawal can be set in advance. When the price is triggered, the trade will be executed automatically. For example, when the value of LPtoken drops to a certain value, it will withdraw from the fund pool.
l Layer2 Scalability Technique
YouSwap’s multi-chain system is deployed on the public chain with rich assets and project protocols. In the public chain ecology, Ethereum blockchain network is the most prosperous. At present, Ethereum network can only handle about 13 trades per second, and a large number of DApp on Ethereum operate with frequent network congestion, thus generating a trading fee of $80-90 per trade. Considering the problem of insufficient performance and high Gas fee in Ethereum network at present, YouSwap firstly adopts the technical development of expansion scheme ZK Rollup in V1.0, that is, all trading data interacting with Layer1 are put on chain, the trading data of Layer2 are put off chain, and the Hash data of trades are also put on chain. The validity of state transition is guaranteed based on the continuously generated zero-knowledge proof, so that it’s possible to complete the verification of multiple blocks on the chain. With the support of high-performance computing resources, the generation time of proof is greatly shortened, the throughput of the system is significantly improved, and the average trading cost is greatly reduced. This high-performance expansion can realize instant exchange and low Gas cost. The YouSwap team will also build an expansion scheme that supports universal EVM, so that other applications can be migrated quickly without rewriting the smart contract. In the planned V3.0, YouSwap will be compatible with Optimistic Rollup and Validum in terms of expansion scheme, so as to realize the interoperable application of Layer2 solution in Ethereum.
l Application of Multi-chain and Cross-chain Interoperability
Another highlight of YouSwap platform is cross-chain. There are two important prerequisites for the development and growth of various DeFi protocols, the first is the improvement of technical performance, and the second is the matching of cross-chain demand of assets. With the slot auction of Polkadot Parachain, YouSwap team believes that the prosperity of Polkadot ecology cannot be underestimated in the future blockchain encryption world, and YouSwap team will explore the Parachain and Relaychain of Polkadot to solve the expansibility and scalability issues. The YouSwap platform will first support four kinds of blockchain cross-chain protocols including Ethereum, TRON, BSC and Heco, and will also gradually access Bitcoin and support the cross-chain of Polkadot Ecology, so as to help users of YouSwap participate in multiple public chain ecosystems with one click and trade token assets on different public chains.
l Four-fold mining mode
YouSwap adopts the mechanism of LP liquidity mining, single-currency staking mining, trade mining and invitation mining. On YouSwap platform, all users have the opportunity to participate in the above mining activities. Users can obtain mining rewards by providing liquidity LP to the liquidity pool, and they can also obtain mining rewards by generating trades on YouSwap platform. The mining rules of hashrate invitation are as follows: the user of YouSwap platform can become a inviter by activating the role of miner through the invitation link, and then invite other users to participate in liquidity mining. Only two levels of invitation relation can be generated with two invitation modes: (1) Hashrate sharing: The inviter sends the link to friends (invitees) who will pay the miner’s fee to activate the invitation relation and enjoy a 5% bonus. (2) Miner activation: The inviter pays the miner’s fee to activate friends (invitees), and get a 15% hashrate benefit from first-level friends and another 15% hashrate benefit from second-level friends. The inviter’s friends will also enjoy a 5% bonus. The inviter and invitee who activate the invitation relation in the above two modes can get the corresponding invitation reward when the invitee pledges to mine. In the liquidity mining pool, the higher the hashrate of LP is, the higher the mining output is.
l Diverse “YOU series” Ecological Function Services
The All-Eco application of YouSwap is mainly manifested in the functional services of YOU series. For example, in the function of YouStarter, a series of ready-made smart contracts have been created for non-tech founders to realize the convenient service of ICO. In the expansion of fund-raising channels, IDO (initial DEX offering) is provided to quickly help the high-quality innovative projects to raise funds in early stage. These projects will launch their trading pairs on the YouSwap platform in the future, realizing one-stop auxiliary services for token creation, coin listing fund pool and subsequent development of projects. YouDerivatives is a decentralized derivatives service launched on V2.0, a hedging channel for decentralized financial risks. The main derivatives to be launched in the future include decentralized perpetual contracts and decentralized option products. YouTreasury is an open financial service system, which mainly derives leverage transactions, leverage liquidity mining, aggregated lending services, wealth management services, and aggregated wealth management services bridging YFI’s revenue based on the loan development function. YouPay is developed based on the user group’s need to exchange and transfer of stablecoin. The YouPay system is updated through the payment module, which supports the instant exchange between various stablecoins and fiat based on layer2, and can achieve instant transfer, greatly lowering the threshold for C-end users and traditional enterprises to access and accept cryptocurrency. YouNFTs can provide circulation creation and trading platform services for on-chain investment of real estate and art collections, and can also provide NFT-based product applications such as NFT mortgage loan, NFT mining, and NFT mortgage ICO.