Although 2020 was not a great year overall, there is one thing we all were happy about — The rise of the crypto bull market. Bitcoin crossed its 2017 ATH in November 2020 and has remained over $20,000. Crypto’s total market cap has now crossed one trillion for the first time ever. Also, most of the crypto market experts believe that this rally will continue for the rest of 2021.
These market conditions have amplified the scope of crypto exchanges as the number of people who want to get involved in the cryptocurrency market is increasing exponentially. These exchanges do a great job in serving their users as the crypto market inherently comes with many complexities such as market illiquidity and price volatility.
Marginswap is a new age decentralized exchange (DEX) built on the back of DeFi giants; Uniswap and Sushiswap. Users of Marginswap get to trade some of the most popular crypto tokens in the market with ease. The best part about trading with Marginswap is the leverage it offers its users on these tokens.
For instance, tokens like Bond or MTA as of right now cannot be traded on margin on any typical closed-system exchange, largely due to liquidity constraints. But Marginswap would be listing these assets already with the release of the beta platform, safely, by using the liquidity of existing decentralized exchanges. Our goal is to improve the liquidity and adoption of any and all genuine crypto assets in the market.
We love the smart contract design of protocols like Uniswap, Sushiswap, and 1inch: straightforward to govern, audit, and easily upgradable. We are adopting these best practices and taking them a step further. All our contracts are functionally independent, modularized and funds are kept at arm’s length from logic, with well-defined interfaces.
In the first version of the Marginswap protocol which is set to go live in Q2 of 2021 (after successful audits), users will get to trade any assets approved by governance with up to 5X leverage.
What can be done on Marginswap?
- Spot Trade Cryptos: On the Marginswap exchange, you can buy and sell popular crypto tokens available on any major DEX beginning with Uniswap and Sushiswap. A minute fee will be charged for spot trading cryptos.
- Margin Trade Cryptos: As discussed, users can trade with up to 5X leverage. The number of tokens available for margin trading and the leverage will be determined by governance. We expect the number of tokens available on margin to grow exponentially once the exchange gains traction.
- Cross Margin Functionality: Margin trading is natively supported by the protocol. Your available margin balance can be used to borrow any token and trade across any pair.
- Supply Bonds: If you are a crypto investor and prefer holding your cryptos, you can supply those idle assets to the protocol for margin trading financing. In return, you can earn attractive interest rates. While rates will vary depending on the supply and demand for these assets, we will provide yield guarantees for set periods of time, starting at one hour. We refer to these crypto-assets provided by lenders on the protocol as bonds. These bonds can be purchased with a variety of cryptos supported in margin. While bonds will be time-based, there will be the option to enroll for a bond subscription.
- Gain Insights: The Marginswap protocol is designed with simplicity and convenience at its core. Margin traders can easily monitor their positions and track interest rates. This will help traders better manage their position and avoid margin calls.
Why should you consider Marginswap?
High Liquidity — The v1.0 of the Marginswap protocol is built on top of Sushiswap and Uniswap, both DEXs with over $4 Billion in liquidity. We expect liquidity in these protocols to keep increasing. For the v1.1 we plan to add limit orders and other sources of liquidity for example curve, 1inch, and more in the v1.2.
Extremely Transparent — Thanks to the blockchain, all transactions on the protocol are transparent, which means no hidden fees or shady liquidation. Every transaction is verifiable on-chain, and users can easily monitor their trade performance and incurred interests on their existing borrowed assets in real-time. The provenance and reserves of the exchange are also plain to see, minimizing organizational or legal risk.
Comparatively Cheaper — Since we will be adding every major DEXs and the fact that our system compares prices with the upcoming ability to split trades, traders consistently get the best prices for their trades. If you are trading on Marginswap, you are guaranteed the best price with minimum slippage.
Robust Security: Smart contracts are only as smart as the instructions you give them. That is why our smart contract logic is designed with simplicity, and readability in mind, making audits, extensions, and testing easier and more efficient.
Community Governance: All significant decisions concerning the future of Marginswap will be governed by its users. Therefore, we can say that the native token holders of this DEX will guide it into being the unicorn it is destined to be.
We are pushing as hard as possible to release the beta version towards the end of Q1 or early Q2.
Do you want to be listed on Marginswap?
We are sure that Marginswap has the potential to be one of the most notable & reliable DEXs in the near future. That is why we are inviting all project leads of a protocol with over $4 million in on-chain liquidity to reach out to us and pursue the opportunity to be listed.
Projects like Marginswap are crucial in expanding the reach and adoption of upcoming and already booming DeFi projects. To keep up with developments please join one of our channels.
Don’t be a bear, bull with us!