WingSwap is the first DeFi platform that provides both AMM and integrated NFT Farming functionalities on Fantom. WingSwap aims to provide a One-stop DeFi service platform on the most emerging blockchain Fantom Opera. WingSwap is more defined as DEX where users can trade the on-chain assets with ease of enough liquidity on the platform. It adopts the mechanism of Automatic Market Maker (AMM) and aims to achieve self-driven liquidity creation with diversified functions such as liquidity mining, NFTs, staking, yield farming, DAO governance to provide participants with the maximum value.
The various features WingSwap bringing to Fantom are:
- Dex(Decentralized exchange)
- Liquidity pools & Yield Farming
- staking
- NFT integration
Why Fantom?
Until 2021, the Majority of the DeFi products were being built on Ethereum Blockchain, However, there is a huge gas fee involved in every transaction you make on ethereum due to proof of work consensus. So, many users are unhappy with the high gas fees and they were looking for some similar blockchain to use DeFi products that cost less gas fee. In the same way, as developers considering the aspects of users(customers) they started to build the DeFi products on Fantom which runs on Directed Acyclic Graph. As compared to Ethereum, Fantom has a much higher transaction rate and very little gas fee. So interests in people and developers are slowly shifting on to Fantom.
The transactions on Fantom are fast and cheap, the opportunity for interoperability is what sets Fantom apart and why WingSwap opted to create the smart contract for the WingSwap on Fantom Opera.
DEX(Decentralized exchange):
As all of us know the DEX has high importance in crypto because all the new and emerging project tokens will not be listed on Centralized exchanges due to their limitations and Regulations. So most of the newly created projects will be only available on DEX to trade.
WingSwap is a Dex that supports the trade of on-chain fantom network assets. WingSwap Dex works on a principle of AMM(Automated Market Maker) which is a constant product AMM model. The token swaps mechanism happens in this way: The liquidity pool is provided for the pairs and the weights of the individual tokens in the pool decide the relative price of each token. So when a new user comes to buy(Swap) a particular amount of token in that pool, hence changing the pool weights leads to a change in the price of the token. So, to make sure the price changes are significantly less for each swap there should be a Significantly high amount of liquidity pools in the protocol. WingSwap always strives to achieve enough liquidity on the platform to enable smooth trading for users. LPs earn part of the fee for corresponding to their pool and also $WIS comes to play here in rewarding the LP stakers and helping the platform to maintain enough liquidity. We discuss use cases of $WIS in further sections and how to help in maintaining enough liquidity on the platform.
WingSwap is also trying to bring the DEX Smart Trading on the WingSwap platform which offers a convenient trading experience like CEX with Oder list, Price chart, and Limit order. Now, users can trade like a traditional exchange on a decentralized exchange (DEX).
Liquidity pools:
Liquidity providers and liquidity pools play a major role in DEX(AMM models). The users provide the pool of tokens a proportionally equal amount of both tokens, So that pool helps to enable the smooth trade of tokens in that pool. So the larger the liquidity on DEX the smoother trade will be. The LPs are very important to provide low slippage trade for traders.
So to increase LPs on the platform they were incentivized for the LP they provided. The liquidity providers receive LP tokens and also receive a share of the transaction fee. To bring more on-chain liquidity WingSwap has enabled yield farming features on their platform.
Yield farming is one of the core features of WingSwap. It allows users to earn WIS while supporting WingSwap by farming LP tokens. Yield farming is nothing but staking the LP tokens received by liquidity providers for the passive income for a certain time. The Liquidity providers who have LP tokens corresponding to their share can participate in the Yield farming pools of WingSwap and stake them, which gives them an interest in their investment. Once they stake their LP tokens they receive $WIS tokens as per the APR at the staking time. It will be the driving point for the Liquidity provider to keep their liquidity on the platform for a long time.
Stable coin pools — WingSwap provides stable coin pools on the platform for the users to stake their stable coin LPs on the platform. Stable coin pools help us to minimize the Impermanent loss of LPs.
About Impermanent loss and how can stable coin pools escape the risk of it: we have discussed above that AMM works on LP pools, So whenever a trade happens buy/sell tokens are removed or added into the pool, hence causing the price change(increase/decrease) as per the tokens ratio. Hence causing the token rebalancing in the pool and prices will not vary much if the liquidity is higher and even if the arbitrageurs come into action and help maintain the market price. In the process of token. In the process of token rebalancing in the pool, there is a risk of impermanent losses for the LP provider, So stable coins help them prevent impermanent losses as their prices stick more or less the same in the pool.
Staking:
Unlike yield farming, Staking is also a mechanism to deposit their tokens into the pools but here users will stake a single type of token into the pool and earn the tokens of the same kind OR a different kind, the earning will be based on the amount they stake. Simply “The higher the amount of tokens they stake, the higher is their earning and The earlier they stake into the pool, the more they can earn by accessing high APR”. This also helps the users drive to hold their token long-term. You can stake $WIS to earn more $WIS. There are 2 types of staking pools one is normal and another is locked staking(VIP staking) available once the token launches. You also get an additional NFT for staking in the locked pools.
NFT integration:
NFTs are integrated into the ecosystem to make us feel DeFi complete. They will be different types of platform-themed NFTs. This will make a novel, better, and more appealing competitive advantage to our users. They are 2 NFT kinds namely WingNFT and ship booster NFT. Wings NFT holders will be able to participate in DAO Governance and they are released and held on sale only once. Ship Booster NFTs allow you to achieve higher APR% on your liquidity positions. Users can stake with ship booster NFT into the farming pool to get more rewards from farming. When the Ship Booster NFT is staked along with the LP tokens, it provides a percentage boost on the rewards earned from that pool/vault.
Token $WIS:
WIS will be a governance token used to govern the HurricaneSwap Protocol. It will also be used to incentivize protocol usage, bring in more liquidity & grow the ecosystem. The WIS token will be heavily integrated into the protocol and is going to be the backbone of the platform. The liquidity providers will be incentivized by the WIS token, which helps to bring in more liquidity to the protocol and enables the smooth running of the platform.
WingSwap IDO is about to happen on FantomStarter. Make sure to join the IDO to invest earlier in the project before they launch.
Notables:
🔥WingSwap has good partners and investors which helps to build more rigorously in the blockchain world with their support. The backers and investors include are
🔥WingSwap has been successful in attracting high community support before even the launch. They have around 68K followers on Twitter and 49k members on the telegram community.
Official Links:
Website: https://wingswap.io/
Wingswap Dex: https://app.wingswap.io/
Twitter: https://twitter.com/WingSwapFTM
Telegram: https://t.me/WingSwapFTM
