CSWAP DEX

A progressive DEX for the Cardano Ecosystem, merging next-generation DEX capabilities with NFTfi.

Why CSWAP? Because CNFTs are tokens too...

CSWAP DEX was born from a grassroots movement and community-driven passion. On the CSWAP DEX platform, there will be interesting opportunities unavailable elsewhere. Our innovative approach to decentralized finance will delight users.

The CSWAP DEX financial platform will be fully decentralized and trustless, featuring cutting-edge, Plutus V2 smart contract integration. We intend to provide a seamless user experience for all major Cardano wallets. Yoroi, Nami, Eternl, Flint, and Gerowallet have already been integrated.

Our NFTfi experience will allow holders to utilize their Cardano NFTs (CNFTs) like never before. We want to be the first DEX in the world to treat NFTs as the tokens they are. Harnessing the power of our AMM, combined with proprietary technology around NFT lending automation, we aim to break new ground in our space.

While the CSWAP DEX platform will be first available on web, we plan on releasing a mobile app for iOS and Android sometime after the DEX release.

We believe in transparent business practices and an engaged product development lifecycle. The CSWAP community is part of the team. We plan on working with our community as part of an agile/iterative development process. Together we will create tremendous value for the Cardano Ecosystem.

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Industry

DeFi

DEX

Lending Protocols

Lending protocols in the DeFi world allow people to loan or lend money in a peer-to-peer manner, i.e. without the banking middleman. These loans are secured by the lender over-collateralizing the loan and the terms of the loan being managed in a smart contract. This gives the unbanked or those who have poor credit the ability to take loans, and it gives those with excess capital the opportunity to provide loans in a secure and trustless manner, and to earn income from them.

Over-collateralization means that the person receiving the loan locks up more than the value of the loan to secure it e.g. if they want to loan 100 they must lock up 150. How much they over-collateralize the loan by, and which tokens they use as collateral, depends on the platform. Some platforms only accept stablecoins, and other accept a variety of crypto assets. Typically, an individual uses one asset for collateral and takes a different asset as their loan.

An important factor in all loans is the interest rate and the length of the loan. These vary greatly by lending protocol, and loans can have fixed interest rates and periods, or infinite periods with interest rates that fluctuate throughout the loan period, fluctuating based upon the utilization rate of the pool of funds the loan was drawn from.

Importantly, the receiver of a loan is expected to maintain a certain ratio of collateral to loan, meaning that if the value of their collateral drops below that of their collateral to loan ratio, they need to add more collateral to keep the required balance. If they don’t keep up the collateral ratio they face liquidation and the loss of their collateral.

To "become the bank" those with idle tokens can deposit them into a lending protocol and earn from the interest derived from the loans their tokens are used to facilitate. Usually this deposit requires a lockup period of a certain length of time. Often, the longer the lockup period the higher the percentage return for the depositor.

DEX

Here is a Cardano DEX list for you to explore all the decentralized exchanges built on Cardano. There are multiple Cardano DEX projects for you to choose from, each with a different take on the DEX concept and the way of managing a decentralized exchange protocol.

Listed here are Cardano DEX projects that are based on both the automated market maker (AMM) and the traditional order book style of exchange. Both types of DEX on Cardano, like any other exchange, require a good amount of liquidity to operate effectively. This leads many to say that the best Cardano DEX is the one with the most liquidity. However, there are many other factors that the users of these DEXes would tell you to take into account before deciding which is the best Cardano DEX, and which one you should interact with (although a high amount of liquidity is a good indicator for users).

Interestingly, many Cardano exchanges, such as Sundaeswap, use the concept of “batchers” to collect, order, and execute transactions. This reliance on a small group of batchers to order and execute user transactions reduces the decentralized nature these exchanges as these entities could easily collude to front run transactions from particular wallets or to censor transactions from other wallets.

AMM

AMM stands for Automated Market Maker. This is an algorithm, often supplemented by oracles, that facilitates the pricing and exchange of assets between users. Assets are exchanged at market value through liquidity pools. These pools are created by Liquidity providers, LPs, who deposit assets to the exchange in pairs. This “asset pair” then allows users to swap one asset for the other through the liquidity pool. Fees are paid to the LPs who provided the liquidity. The more liquidity a pair has the less “slippage” a user experiences, meaning the less likely the user is to experience a price change in their trade.

Why CSWAP? Because CNFTs are tokens too...

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