An AMM DEX featuring multiple, algorithmically different, liquidity pools for the same token pairs.
Minswap is a Cardano DEX where LPs can see the potential APY of a pool before providing liquidity, and then make an informed choice about which pools they chose to provide liquidity to. MinSwap DEX also employs an automated yield farm strategy, which helps LPs to rebalance the liquidity they provided into the most efficient pools.
As a multi-pool DEX, MinSwap offers four different types of pools:
- Constant Product pools
- Stable pools
- Multi-asset pools
- Dynamic pools
More pool types can be added in time through community voting.
Optimized for Trades and Yields
One pair of trading assets will have multiple pools associated with it, ideally one of each of the above types. A trade gets routed through all the available pools to find the pool yielding the highest returns for the LPs. Trades can also be broken down into smaller parts and processed through multiple pools to optimize returns.
On-Chain Price Oracle
MinSwap aggregates the price of asset pairs across multiple pools to provide the most accurate price to the trader.
MIN: will be the governance token of the platform and will represent the owner's voting power for governance.
MINt: The MINt token represented 80% of the rewards received by those who took part in Minswap’s ISO; the other 20% was MIN tokens.
These need to be converted to MIN within 82 epochs, 410 days, of Minswap’s Launch. To do so the user must contribute liquidity to a select token pair, of which a list will be made available to users. The user then takes the LP tokens received for their contributed liquidity and stake it along with the MINt tokens they want to covert (there is a limit of the quantity of MINt that can be converted for each LP token, this limit is also dependent on the pool contributed to). These tokens are then locked for 45 days.
After that 45 days the user’s LP tokens will be unlocked but their new MIN tokens will be locked linearly for an additional 45 days. This is being called “boosted yield farming” and users will receive an estimated x2.5 bonus on their yield farming rewards earned for staking their LP tokens for the 45 days.
For a detailed explanation of the process check out this blog post from Minswap.
LPs are rewarded in MIN tokens which can be used for governance i.e. voting on protocol improvement proposals. Staking MIN tokens provides the staker with xMIN tokens through which they receive a percentage of trading fees and other economic activities of the platform.
Minswap Trading Fees?
The Minswap Fees are as follows:
- 0.3% of the value of the trade for LPs
- 2 ada fee paid to the Batcher
Other Features and Comments on Minswap
MinSwap is also going to incorporate an ERC-20 converter and will host wrapped tokens from other chains utilizing third part cross-chain bridges and wrapping services.
In the future MinSwap plans to support Initial DEX Offerings, IDOs, and Initial Farm Offerings, IFOs.
Two weeks after their launch, March 9th 2022, and after amassing over $200m in TVL, the team at Minswap were privately informed by the team at Wingriders that they had found critical vulnerabilities in their open sourced smart contracts that would enable a hacker to drain all the funds from Minswap's liquidity pools. The Minswap team moved the protocol to maintenance mode to protect users funds, and then proceeded to fix the problem. The Minswap account of the hack can be found here and a community version of events, by the Cardanians can be found here.
Minswap appears on many a Cardano DEX list and is well known and well used DEX, and, as of October 2022, is top of the Cardano TVL rankings on DeFi Lama.