KwikSwap — one of the first cross-chain DEXes on Kusama

By July 21, 2021Binance
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Over the past 2 years, the DeFi sector has become one of the main driving forces behind the whole crypto market growth. The new alternative financial system with its own ways to exchange money, deposit money to earn interest, even take loans, attracted a lot of new people to crypto. Every major blockchain has its own DeFi platforms. But here’s the problem: every blockchain is an isolated ecosystem with its own set of rules. As the result, all DeFi platforms and tools built on these blockchains are isolated too. Only a few platforms support asset management across multiple chains at once, and none of them supports Kusama and Polkadot so far. KwikSwap fills this gap.

Multiple chains, one protocol

Basically, KwikSwap is a DEX that works with many blockchains. It can be compared to Uniswap, but there’s a slight difference: although Uniswap has a list of wrapped tokens from other blockchains available for trading, it’s still Ethereum-oriented and doesn’t focus on other blockchains. KwikSwap, on the other hand, is a cross-chain protocol that comes in many flavours. It supports Ethereum, Binance Chain and Kusama parachains, such as Reef Chain, Acala Network and Astar (formerly Plasm). All of them share the same codebase, thanks to EVM-compatible smart contracts on all parachains and BSC. However, even though the code for all parachains is Solidity-based, it was completely rewritten from scratch to be able to work on chains, built on Substrate pallettes.

Currently, all modules on all chains work separately, because it takes time to build bridges. Kusama parachains also aren’t fully functional yet. The team is finalizing integration with Acala Mandela testnet, so it would be able to implement all these developments on Karura pretty soon. KwikSwap Astar Testnet Demo is also available for testing. To achieve this, the KwikSwap team worked very closely with the Acala and Astar teams for the past half-year. Now KwikSwap will become one of the first DEXes on Kusama. It’s also worth mentioning that only a few DEXes work both on Ethereum and Binance Smart Chain, so KwikSwap is in a very good position on the market overall. The only major hurdle they have to overcome is connecting all these separate markets into one interface and it’s totally accomplishable by using bridges and wrapped tokens.

A wrapped token is a cryptocurrency token pegged to the value of another crypto. It’s called a wrapped token because the original asset is put in a wrapper, a kind of digital vault that allows the wrapped version to be created on another blockchain.

Kwikstarter — onboarding new blockchain projects

In addition to the DEX, KwikSwap also features a lot of other initiatives, the most important among them is Kwikstarter, the IDO platform on Binance Smart Chain. Kwikstarter allows any project to get listed on KwikSwap and then traded in a decentralized way. That kills two birds with one stone: attracts new users who want to get allocations in new projects prior to listing, instead of letting VCs collect all profit, and gives new projects a platform to be listed without paying high fees.

The platform is currently in the development stage, and the dev team is finishing work on the BEP-20 token sender and claimer, which is going to be used in initial offerings. The devs also have almost finished another version 2.0 of Kwikstarter and it’s going to be launched on Polygon. Kwikstarter is partnered with PDOfinance, a startup, which helps projects fundraise for operations and cash out without affecting the market price in a negative way. Kwikstarter is going to be an important addition to KwikSwap if they market it right.

How to use KwikSwap?

Using KwikSwap isn’t harder than using any other DEX such as Uniswap or Sushiswap. All you have to do is connect your Metamask, in the case of using the Ethereum or BSC version, or Polkadot.js extension, if you want to play around with the testnets.

To make it easier for everyone, we collected all links to DEXes and all guides about KwikSwap variations that exist so far:

  1. Ethereum version — no guide
  2. BSC version — no guide
  3. Karura version is going to be released soon

We’ll continue updating this list in the future.

KWIK and liquidity farming

The main token of KwikSwap is $KWIK. It’s designed to be a reward token on the DEXes for those who provide liquidity to liquidity pools and a governance token for voting on adding various assets to DEXes or listing new projects on Kwikstarter. Also, it’s mandatory to hold a minimum of 1,000 KWIK to be whitelisted for Kwikstarter launchpad sales participation. In a similar fashion to Uniswap, the native KWIK token can be staked in its own liquidity pools. KwikSwap offers 12% APY and fee share for staking on its platform.

The max supply of KWIK is 250 million, all of them are already minted on Ethereum as ERC-20. All KWIK tokens on other chains will not dilute the existing supply, acting rather like wrapped tokens — the existing tokens will be locked in the contract to mint other versions on BSC and Kusama/Polkadot.

The price of KWIK has suffered recently due to the hack of the ChainSwap DEX where the token was listed. The hacker stole $8 million due to the security breach and crashed the price of all tokens that were traded on that DEX, including $KWIK. It should be noted, that it wasn’t related to KwikSwap at all, just some bad luck.

Conclusion

Overall, KwikSwap is a pretty promising project if they manage to pull off everything they plan. They have a dedicated team, that works around the clock, they aim to create a small ecosystem that will satisfy the needs of a modern retail crypto investor — a DEX, an IDO launchpad, an NFT marketplace. Given that all these platforms are going to be launched on Kusama/Polkadot, there isn’t so much competition yet, so they have a good chance to succeed. We’ll continue giving you updates on the further development of KwikSwap. Stay tuned!

Website:
https://home.kwikswap.org/

Telegram:
https://t.me/kwikswapdex

Twitter:
https://twitter.com/kwikswapdex

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