Swing x AshSwap AMA Recap
MultiversX Liquidity Unleashed w/ AshSwap
Introduction
We had the pleasure of hosting an AMA session with AshSwap. Joining us was Neil, the Founder & CEO of AshSwap. During the session, we introduced both platforms and discussed the partnership between AshSwap and Swing, focusing on their collaboration to enhance liquidity and provide a seamless trading experience on the MultiversX blockchain.
Swing: Swing is a cross-chain SDK that facilitates liquidity onboarding from over 24 EVM and non-EVM chains. With support from renowned VC firms like Arrington Capital, Republic Capital, Ascensive Assets, and Celer, Swing has built a solid foundation. Its team comprises professionals with extensive experience in prominent tech companies such as Apple, Amazon, and LinkedIn.
AshSwap: Neil, the Founder & CEO of AshSwap, introduced his team as a group of Vietnamese blockchain and DeFi enthusiasts. AshSwap is a decentralized exchange built on the MultiversX blockchain, serving as a financial layer that drives development within the ecosystem. The current version of AshSwap features AMM liquidity pools powered by Stable-swap and Concentrated Liquidity algorithms. They have plans to expand into a powerful exchange with a wide range of trading products.
Partnership Between AshSwap and Swing
The partnership between AshSwap and Swing aims to address the liquidity challenges faced by the MultiversX ecosystem. Swing's cross-chain SDK allows AshSwap to access liquidity from multiple chains and DEXes, including well-known aggregators like 1inch and ParaSwap. This collaboration enables AshSwap to offer LPs deeper liquidity and more rewarding opportunities while providing users with better pricing and lower slippage.
Question 1:
An introduction to AshSwap and the team behind it.
Neil: We are a Vietnamese team of blockchain/DeFi enthusiasts. We've been working on the product for a year, and today we're thrilled to be able to expand our regional communities and meet our new community members.
AshSwap is a MultiversX blockchain-based decentralized exchange. A robust and decentralized financial infrastructure is unavoidably required for a decentralized application ecosystem to thrive. AshSwap aspires to be a financial layer that drives development on the MultiversX Network. The current version of AshSwap includes AMM liquidity pools powered by Stable-swap and Concentrated Liquidity algorithms. The next version will turn AshSwap into a powerful exchange with a wide range of trading products.
Question 2:
Could you provide us with more details on the partnership between AshSwap and Swing?
Neil: Swing is a cross-chain SDK that assists the MultiversX team and developers in onboarding liquidity from 24+ EVM and non-EVM chains. Swing now aggregates liquidity from 10+ cross-chain bridges, 30+ DEXes, and well-known aggregators like 1inch and ParaSwap.
As a MultiversX AMM DEX, AshSwap is the best place to swap stablecoins and unstable coins while also rewarding liquidity providers (LPs). In the last three months, we distributed nearly $12.8 million in $ASH rewards to LPs, and total trading volume surpassed $13 million. However, AshSwap, like other trading exchanges, will not reach its full potential unless there are ample sources of liquidity.
There will be a new way to interact with liquidity now that AshSwap has entered Swing's liquidity aggregation ecosystem. This is accomplished through the Swing Widget and API, which enable developers to connect their apps to a variety of liquidity sources, including MultiversX dApps, EVM chains, and even non-EVM chains. As a result, LPs can expect to earn more rewards and enjoy deeper liquidity on AshSwap, while users on other dApps that use Swing's cross-chain technology will benefit from AshSwap's better pricing and lower slippage.
Question 3:
How does this collaboration align with AshSwap's mission and benefit the MultiversX ecosystem?
Neil: Liquidity is an essential component of any Blockchain; by increasing the ecosystem's liquidity, we provide users with more benefits, enhancing their experience across our entire MultiversX ecosystem. This significantly contributes to MultiversX's mission of building and expanding, and we've always maintained our motto of MultiversX bringing us 1 billion users, and we serve them.
Question 4:
What new opportunities will be created for LPs to earn rewards and participate in the growing transaction volume?
Neil: The partnership between AshSwap and Swing opens up new opportunities for liquidity providers (LPs) to earn rewards and participate in the growing transaction volume. Here are some potential benefits for LPs:
Increased Liquidity: By leveraging Swing's cross-chain SDK, AshSwap gains access to liquidity from a wide range of chains and DEXes. This increased liquidity pool provides LPs with more opportunities to contribute their assets and earn fees from trading activities. With more liquidity, LPs can attract a larger user base and benefit from higher trading volumes.
Diverse Trading Options: The integration of AshSwap with Swing allows LPs to participate in a broader range of trading options. With liquidity aggregated from multiple chains and DEXes, LPs can provide liquidity to various token pairs and benefit from the growing transaction volume across different ecosystems. This diversity enables LPs to spread their risk and maximize their earning potential.
Optimized Trade Execution: Swing's role as a liquidity aggregator helps optimize trade execution by sourcing liquidity from multiple platforms. LPs can benefit from improved price discovery and reduced slippage, resulting in more favorable trading conditions. This optimization enhances LPs' earning potential and attracts more traders to the platform.
Reward Incentives: To incentivize LPs and encourage their participation, AshSwap and Swing may introduce reward programs. LPs may earn additional tokens or incentives based on the amount and duration of their liquidity provision. These rewards can boost LP returns and provide an additional income stream.
Growing Transaction Volume: As the partnership between AshSwap and Swing brings together more liquidity and attracts a larger user base, the transaction volume on AshSwap is likely to grow. This increased transaction volume translates to higher fees generated from trades, benefiting LPs who earn a share of those fees based on their liquidity provision.
Question 5:
Can you explain the role and significance of the ASH token within the AshSwap ecosystem?
Neil: AshSwap's native token is ASH. It acts as a gateway to more advanced features and incentivizes liquidity providers to use the platform.
Its significance can be understood in the following ways:
Governance: ASH token holders have governance rights within the AshSwap ecosystem. They can participate in voting on proposals, protocol upgrades, and other important decisions. This gives token holders the power to shape the direction and development of AshSwap.
Revenue Sharing: When users trade on AshSwap, a portion of the trading fees is collected. The ASH token holders can participate in fee distribution mechanisms, allowing them to earn a share of the fees generated on the platform. This incentivizes token holders to stake and holds ASH tokens to maximize their earning potential.
Staking and Rewards: ASH tokens can be staked in liquidity pools to provide liquidity to the platform. LPs who stake ASH tokens can earn additional rewards, such as additional ASH tokens or a percentage of the trading fees generated by the liquidity pool they contribute to. Staking ASH tokens provides an opportunity for token holders to earn passive income.
Question 6:
How does it incentivize liquidity providers and other participants?
Neil: For Participants: By collaborating, AshSwap and Swing can make it easier for participants from other dApps to access the MultiversX ecosystem and benefit from better pricing and lower slippage from AshSwap. Furthermore, our AshSwap Aggregator with Dynamic Trade Routing is now live on Mainnet, and we are offering it to our users for free to help them save money.
For LPs: Swing allows them to gain easier access to Ashswap. With an appealing APR ratio combined with the optimal profit feature of Farming Yields Boosting and a growing number of participants daily, Ashswap believes that we are providing them with numerous compelling reasons to provide liquidity for us.
Question 7:
AshSwap is known for its unique approach to liquidity pool design. Could you explain how Auto-Concentrated Liquidity enhances yields and reduces slippage for users?
Neil: Our concentrated liquidity pools were powered by an algorithm that can automatically adjust users' liquidity, thereby maximizing the pool liquidity while keeping liquidity providers' Impermanent loss in control. It also addresses a very big deterrent to liquidity providers: the constant need to adjust price ranges constantly.
Another angle to consider is that though the price ranges/ticks approach of UniswapV3 and similar exchanges works very well for highly liquid tokens, price discovery cannot happen naturally for less liquid ones. This is quite troublesome for the MultiversX blockchain, specifically where most tokens are not listed on centralized/order-book exchanges. Our approach is more versatile in this sense since liquidity is concentrated, and price discovery can also happen.
Question 8:
Finally, what message would you like to convey to the community and potential users regarding the partnership with Swing? How does this collaboration reinforce AshSwap's commitment to providing a seamless and liquidity-rich trading experience on MultiversX?
Neil: As a Defi Layer on MultiversX, Ashswap is attempting to set the standard. We aim to provide a user-friendly UX/UI interface as well as exceptional features to users and LPS. Our goal is to assist them in achieving higher prices, lower slippage, and higher profits. We hope to explore other DAPPs beyond Multiversx with Swing and serve a broader range of users. Our efforts aim to become MultiversX's right hand by assisting with ecosystem expansion and increasing user engagement on their blockchain.
Special thanks to Neil and the AshSwap Team!
Stay tuned as we unlock a new era of liquidity and possibilities for MultiversX 🎉
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