What is Swapline?
Bringing the power of Liquidity Book to Optimism and Fantom
Swapline is a clean fork of Joe V2, a decentralized exchange based on Liquidity Book, a next-gen AMM protocol.
💧 Concentrated Liquidity
Swapline uses the concentrated liquidity book model, which enables liquidity providers to concentrate their liquidity around the current price range (bins) of an asset. This means that traders can execute large trades with minimal slippage, as there is a deep pool of liquidity available at the current price range.
⚙️ Automated vaults
Swapline offers automated liquidity management through the use of vaults that can rebalance a liquidity provider’s allocation as needed. This means that liquidity providers do not have to manually adjust their liquidity all the time, as the system will automatically adjust the allocation to optimize returns and reduce impermanent loss. This allows liquidity providers to earn real yield from trading fees without having to constantly monitor and adjust their liquidity.
🔄️ Dynamic Fees
The Liquidity Book model used by Swapline adjusts the fee structure automatically based on the volatility of a token pair. This is done to compensate for potential Impermanent Loss, which occurs when the prices of the tokens in a pair change at different rates, resulting in a loss of value for liquidity providers. If volatility increases, trading fees increase as well to offset the potential losses from Impermanent Loss. On the other hand, for non-volatile tokens, trading fees are set very low, and the liquidity efficiency is designed to ensure high APRs for liquidity providers. This means that Swapline can provide a more attractive yield for LPs while also minimizing the risk of Impermanent Loss.
🛡️ Fully Decentralized and Secure
Swapline is built on audited Solidity code. Swapline takes security very seriously and has implemented various measures to ensure the safety of the protocol and its users. One of the primary steps taken is a thorough testing of the smart contract code before launch. This includes an initial scan by an external security platform, which helps to identify any potential vulnerabilities or weaknesses while developing the code. Additionally, a full audit will be conducted by Hashex and the audit report will be made publicly available on the Swapline Docs page. By taking these steps, Swapline aims to mitigate any risks associated with the protocol and provide a secure and trustworthy platform for its users.
♻️ Sustainable Economics
Swapline’s dual token system is designed to create sustainable value for the community and its projects. Token A is used to incentivize liquidity provisioning in automated vaults to bootstrap liquidity, while Token B is a limited governance token allowing the community to become part of the DAO and its business model. The innovative thing about the SwapLine token economy, however, is not the pure double token system alone, but the way the two tokens influence each other through the upgrade function. The result is a DEX that is built up with different levels to steadily gain robustness and independence. With these features, SwapLine is designed to establish itself for the long term and generate sustainable value for the community.
A fair launch means that Swapline starts without any pre-mined tokens or pre-sale of tokens to select individuals or groups. This ensures that all participants start with equal opportunities and no one has an unfair advantage over others. This approach puts the community first, as it allows anyone to participate and benefit from the launch, regardless of their connections or resources. Additionally, a fair launch ensures transparency and trust in Swapline, as there are no hidden actors or secret deals behind the scenes.