On September 24th, Oolongswap published their first Twitter post and ever since, they have been getting numerous questions from the community members about their announcements.
The hype of the community about the first DEX on Boba Network is real. So what is Oolongswap? How does it work and what are the highlights of the project? Everything will be discovered in this article.
What is Oolongswap?
OolongSwap is the liquidity hub of Boba Network, a decentralized exchange that has no desire to just be an ordinary DEX. We don’t want AMM-like qualities where you get stuck with high fees and slippage while also being unsafe or plain boring.
So instead, the project offers their users everything great about both types: safe trading without any hassle; inexpensive costs for transactions because it’s dynamic based on supply and demand at a time when the trade takes place.
The journey into this revolutionary concept might take some time but eventually, Oolongswap will deliver its best experience possible within the Boba Network.
How does Oolongswap work?
Oolongswap offers a number of features that make trading on the platform safer and more efficient. It benefits from low transaction fees and rapid confirmation time — ensuring trades are executed quickly without any long delays or cancellations which can sometimes happen with other AMMs in use today.
The functionalities are available as follows:
- Swapping: Users can trade one ERC-20 token for another using Oolongswap
- Providing liquidity: Users can provide liquidity on Oolongswap pools and receive LP tokens. By doing that, LP token holders can earn a portion of all trades that happen on the pairs they provide liquidity to.
- Analytics: There is an analytic board for users to keep track of liquidity, trading volume, and token information on the platform.
Instead of relying on the traditional order book model, which requires buyers and sellers to specify prices in advance before trading occurs between them, Oolongswap uses the concept known as “liquidity pool”. This method makes the trading process more efficient on the platform.
Unlike most existing AMMs, Oolongswap uses a Dynamic pair fee instead of the default transaction fee on each transaction. The fee will be controlled by governance to be set for any given pairs and ranging from 0.01% to 1%.
This strategy enables Oolongswap to accommodate the risk and rewards on different assets better than traditional AMMs. In addition, it will provide transparency and fair slippage on all trading pairs.
Another unique feature of Oolongswap is the Protocol Controlled Value (PCV), as a sub-category of Total Value Locked. However, PCV is controlled by the protocol and can not be withdrawn by users.
This feature creates better value capturing for its token as the protocol grows. The platform can grow to own liquidity on its own DEX instead of borrowing liquidity from other platforms like many other DEXs.
What is OLO token?
At the time of writing this article (6th November 2021), Oolongswap has not launched its token yet. The Coin98 team will update you once its token is released.
Detailed information about OLO
How to get, buy & store OLO token
Roadmaps and Updates
Team, Investors, and Partners
Is OLO a good investment?
There is very little information from the project as it is still in the early stage and the OLO token is not issued yet.
However, there are a few key points from the article that we need to pay attention to such as:
Boba Network is a next-generation Ethereum Layer 2 Optimistic Rollup scaling solution that reduces gas fees, transaction throughput and extends the capabilities of smart contracts. The Ethereum ecosystem is the most completed and largest one in the market at the moment, the Boba network will eventually be more adopted from Ethereum based users. As the first-advantage mover in the Boba Network, Oolongswap will have its user base adopt quickly as the network grows.
The Dynamic Pair Fee solution provided by Oolongswap is an interesting concept. This strategy will create transparency and fair slippage on all trading pairs, making the trading experience become smooth and easy.
Protocol Controlled Value feature allows Oolongswap to grow its own liquidity instead of borrowing like existing AMMs. This will be useful for the long-term development of the project. Since the PCV grows through many different resources such as LP fees, Bonding, or Yield Strategies, the project will need to grow its user base first.
Uniswap: One of the first fully decentralized exchanges (DEX) built in 2018 on top of the Ethereum blockchain.
I hope you have gained all of the important information about OLO including its features and highlights throughout this topic.
If you have any questions about OLO or want to know more about OLO, please feel free to leave a comment below and join Coin98 Community for further discussions about Crypto.
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