SmartSwap: The world’s first smart decentralized exchange (SDEX) protocol

SmartSwap is the world’s first smart decentralized exchange (SDEX) protocol that offers users a single-click slippage-free cross-chain swap through a simple layer.

SmartSwap works on the basis of a contract that employs a zero volatility patent-pending process. Not only would this avoid slippage, but it will also refund users’ fees and gas costs. Users can pick any token they want (say, Token A) as well as the token they will get (Token B). 

SmartSwap, unlike a DEX (Decentralized Exchange), AMM (Automated Market Maker), or CEX (Centralized Exchange), asks users for the USD face value of the tokens they wish to exchange, rather than the token number they want to obtain.

Why choose SmartSwap?

The primary advantage of SmartSwap is that it allows you to swap tokens without having to wrap assets or use side chains. As a result of the creation of a zero-slippage bridge on the previous chain, users are assured that they can obtain the exact dollar value of their asset. Hence, instead of relying on centralized exchanges where data is not completely anonymous, users can now use SmartSwap’s fully anonymous token bridge.

With price volatility and slippage being the primary issue in automated market makers (AMM), users are likely to lose a lot of money while they are swapping. This price volatility is further intensified by the poor liquidity of AMMs. but thanks to SmartSwap’s single-click slippage-free, this no longer becomes an issue. 

Source: Twitter

Team Background

Yoda “Jude” Regev is the founder and CEO of Smartswap. A successful serial entrepreneur who has aided in the growth and development of five businesses, as well as three successful exits, Regev moved to Silicon Valley just a few years ago. There, he self-taught himself to speak fluent English. Besides a passion for startups, Yoda is also interested in developing deep decentralized financial mechanisms, and he has created several flawless tokenomic applications used in everyday life. 

Just take a look at Yoda’s current startup, Jointer. It began unintentionally after he created an algorithm to quickly identify the most profitable Commercial Real Estate opportunities. It was meant for personal use only.  This eventually led to the creation of Element Zero Network, another startup born out of Jointer’s need to provide its users with a secure, decentralized cryptocurrency swaps and payments solution. Later, Jointer’s need for SmartSwap emerged, so SmartSwap was extracted as a standalone DAO where everyone could profit from the zero volatility cross-chain capabilities.

Kyle White is another prominent member of the team. Kyle has worked as a venture executive for more than 15 companies and raised over $600 million in funding. He has previously held leadership positions with real estate industry giants like Zillow and Vail Resorts. Kyle is also the co-founder of Interstellar Digital, a Venture Marketing firm specializing in blockchain and seed-stage businesses. Kyle is a big believer in DAO structuring and mass adoption strategies that help the global crypto market expand.

Technology architecture

• One-click cross-chain

SmartSwap is based on a technology that enables users to perform cross-chain swaps between two assets without the need for validators, wrapping, or side-chain use. The cross-chain swap is a true one-click swap between blockchain networks and can serve as a bridge between blockchain networks-based smart contracts like Ethereum.

Currently, SmartSwap supports swaps between BNB and ETH, as well as ERC20 and BEP20. More blockchains, such as Casper, Tezos, Tron, HOLO, Ontology, ALGO, Polkadot, and others, will be added to it, enhancing its technological capabilities.

Another feature of SmartSwap is that users do not have control over the value of Token A or the number of Token B tokens they receive. Instead, SmartSwap sets the price of both tokens in a single click, based on the current average market price across various reliable exchanges.

Furthermore, if a user sends $1000 in Token A face value and receives token B, there is no way for them to receive $999 or $1001 since SmartSwap can only execute orders with the same face value. If there is an unmatched swap – due to a different order number from the counterparty or market fluctuations – SmartSwap changes the order to accept fewer tokens B to balance the face value, or returns any excess to the customer to whom it belongs.

Example 1

Bob wants to swap $1,000 of Token A with Token B. 

SmartSwap executes the order and sends Bob exactly $1,000 of Token B.

Example 2

Bob wants to swap $1,000 of Token A with Token B. 

At the time of the swap, only $500 worth of liquidity is available. 

SmartSwap executes 50% of the order and sends Bob $500 of Token B. 

The remainder of the $500 remains pending until liquidity is available.

Example 3

Bob wants to swap $1,000 of Token A with Token B. 

At the time of the swap, only $500 worth of liquidity is available.

SmartSwap executes 50% of the order and sends Bob $500 of Token B. 

The remainder of the $500 remains pending until liquidity is available.

After SmartSwap has more liquidity, the remaining $500 of Token A increases in value to $510. 

SmartSwap executes the order, sending Bob $510 of Token B. 

• Two-click Bitcoin Cross-chain

With regard to the two-click cross-chain, SmartSwap allows users to exchange smart contract-based blockchains like ETH and BNB for non-smart contract-based blockchains like BTC and BCH. Users may submit orders without knowing who their counterparty is or being under any time constraints to assert them. Two clicks are needed to swap, one-click to accept, and another click to swap. The transaction to pass BTC to the user’s wallet is sent automatically when the order is fulfilled (or partially fulfilled).  

Tokenomics

SMART, the utility token of SmartSwap encourages users to use the platform through incentives like only minting if an equal value asset is offered to the community, in order to promote a sustainable DAO design.

The SMART supply does not have a SEED sale or a team supply allocation, and it is primarily focused on restoring and adding value to the ecosystem through liquidity and a CEX listing of both SmartSwap and the SMART token.

Smart Price:

• Baseline pre-sale price: $0.01
• Listing price exchanges and PDO: $0.02>

The pre-mint allocation is as follows:

Source: SmartSwap whitepaper

Funding and Investment

The top investors in SmartSwap are Draper Venture Network, Blocksync Ventures, DAO Maker, and Moonwhale. Other prominent investors include IBC Capital, Alpha Capital, Wings Ventures, Finmay, Pluto Digital Assets, and GD10 Ventures. 

Latest Developments and Token Sale

MXC and Mantra DAO are the two integration partners SMART has lined up for the project. Both of these partners are also investors, so seeing their customers interact with the SMART platform would be exciting. The platform is nearing completion of testing and is set to launch soon.

As for the public sales, the pre-sales team has taken a very holistic approach to ensure that the DAO is both usable and welcoming. Only value-adding partners were approved during the private round and it is required that both public and private pre-sale participants must complete the Reverse KYC process to be eligible for swapping. The primary emphasis is on integrating into CEX because SMART gains the most from trading on the exchange rather than pooled liquidity like most exchanges. This allows for immediate access to users who are swapping.

The terms for pre-sale are as follows:

• Price: $0.01
• Rewards: 413.53% APY Bonus
• Lock period: 90 days locked staking followed by one year under the Dumper Shield

Looking forward: The future 

Being incorporated into CEX and wallet providers is the ultimate aim of SMART since this will expand its potential user base. Since SMART would be simple to incorporate for all stakeholders, the emphasis of business growth will be more focused on integrations. And with regard to technology, adding more blockchains as they become more mainstream would help the exchange remain important in the future, regardless of whether people use Ethereum, Cardano, Polkadot, or whatever.

Looking to learn more about SmartSwap? Check them out on their website or on Twitter and Telegram.