A DEX proposing a layer 2 solution to remove computational work from the main chain to significantly increase transaction speed.
MeowSwap kind of came out of left field, hosting an IDO on the Occam.fi platform then releasing their MVP soon after. Their initial documentation left quite a bit to be desired regarding the more technical details of how their “propriety” layer 2 solution was going to work. Because of how novel this was, along with some other red flags that will be mentioned later, this all pricked up some scam hunters’ ears.
Layer 2 Claims
The “proprietary” layer 2 solution has been under development for “four months” by a team from the founder’s other company #metahash which itself claims to be Blockchain 4.0. This layer 2 solution is alluded many times in the yellow paper but a detailed description was not overly forthcoming. A blog post, released in the middle of January provides more detail as to how this layer 2 solution will function.
In a blog post in December 2021 they complained that there was no chain out there where they can "implement everything that we have in mind”. It is not clear what this is in reference too, but, are they not the developer’s of a blockchain 4.0 with a supposed huge TPS, transactions per second, throughput? Why aren't they implementing their solution there?
MeowSwap does offer a live exchange through the MVP on their site but currently uses can only exchange ADA for the platform’s MEOW tokens, or vice-versa. here are no other swaps available, so it’s more of a token sale than an operational DEX at this point. It does however have Nami and GeroWallet integrations already with CardWallet integrations “Coming Soon”.
A Pro version of MeowSwap is also listed, boasting a price chart for MEOW tokens, viewable across multiple time periods. Users of the Pro version can also set their slippage limit, as a percentage, and and transaction execution time limit. There is also a list featuring all of the transactions conducted on the platform available for users to view and explore.
Initially Short on Detail
The yellow paper is short, as can be expected from a yellow paper, but without offering the technical details expected of a yellow paper. Of 5 pages 3 are devoted to price calculation, in a method that is fairly familiar to those used to reading these technical elements of DEXs. The novel L2 solution are not delved into in too much detail, covering what totals around half a page of the 5 page yellow paper. In this half a page they do provide some insight into how the layer 2 solution will supposedly function, via a proof-of-stake set of nodes governed by a DAO (but this is the only place a DAO is mentioned in the whole yellow paper).
In this yellow paper they node towards the release of multiple other instruments such as perpetual contracts, programable trading scripts, postponed executions, and copy trading scenarios.
A medium post was published in early December purportedly offering a “deep dive” into their “cutting-edge technology” however it is a word for word copy of the yellow paper and offers no extra details.
In a previously mentioned blog post regarding more detail, it is said that the layer 2 is up and running, that the nodes in it essentially work as Cardano oracles, and a diagram show how it will function. The blog post is here for those that are interested. It is worth noting that in the yellow paper it was said that this whole layer 2 process would be totally transparent to whomever wants to view it, however this does not seem to be possible at the moment. They also say their method can lead to enhanced decentralization with other users running these layer 2 nodes. The when of this is, again, not delved into in detail.
They have said that before they open pool creation, liquidity addition, and taking functionality they will publish their layer 2 multisig contract and the audit. We don’t know exactly who is doing the audit, the only details that is given is “multiple security companies such as H-K Technologies.”
The team consists of a Founder, a Software Engineer and an Advisor. None of whom mention MeowSwap on their linked socials. Specifically, the developer has been on Twitter for over 10 years yet is only following 23 people and is only followed by 5.
The above detail is from their one pager, but, in a previously mentioned blog post, they boast about a team of 9 members and 3 advisors, the majority of whom formerly worked for the Founder’s other company, the aforementioned #metahash.
First DEX Claims?
They are claiming to be the first DEX on Cardano. However, it is common knowledge that MuesliSwap were the first exchange live on the Cardano mainnet. Starting off with such a lie is not a good sign and can be seen as a marketing gimmick to draw people in. This is specifically why we don’t allow the use of the adjective “first” to describe a project on Built on Cardano because it can detract from the project itself.
Is it Real?
Saying you’ve developed a layer 2 solution and loosely laying it out, then saying no blockchain has the ability to implement everything you want to do (when you have developed your own network) is a little discombobulated.
This and a lack of initial data on this “proprietary” layer 2 solution doesn’t add up too well, along with claims that they were the first DEX on Cardano when they were not. Their documentation, a yellow paper and one pager, are stored on the DocSend platform and require entering an email to access to access them. This fact made some people wary of them seeing as this has never been the case with any other platform’s documentation in this space (and this writer has accessed and read well over 100 white paper, yellow papers, one pagers, pitch decks, and technical documents and never remembers having to enter details to access them).
On the flipside, they have continued to release, be it slowly, documentation detailing how the platform will work and have added functionalities to the platform. They have also been endorsed by Occam.fi and the investors on there who participated in the IDO and COTI have also partnered with them so they can implement the Djed stable coin. It is thought, in good faith, that one of these actors would have done their due diligence on MeowSwap before partnering with them but, as always, DYOR before participating in anything.