How Does InfinitySwap Work?
InfinitySwap is a DeFi platform for trading, staking, and producing tokens that was created on the Internet Computer. Max Chamberlin and Alessandro (Alex) Rietmann co-founded InfinitySwap with funding from Parafi Capital, Polychain Capital, and Draft Ventures.
The objective of InfinitySwap is to establish itself as a top DeFi platform on the Internet Computer blockchain by integrating the Ethereum and Bitcoin blockchain ecosystems to provide a quick, inexpensive, and reliable token swapping, staking, and development network. The team's goal is to create a platform that can exchange tokens from any blockchain ecosystem and have top-notch data to go along with it.
You can visit the InfinitySwap app to access the forthcoming platform, which is still in the Testnet stage.
On the Internet Computer, DeFi platforms, and particularly multi-purpose DeFi systems that incorporate exchanges, wallets, staking, financing, lending, and swapping, are constantly being developed and deployed. It's encouraging that despite being in the midst of a severe bear market, DeFi developers like InfinitySwap are working to expand investment opportunities for the upcoming DeFi wave by including new token standards and NFT support.
What features is the InfinitySwap DeFi platform equipped with?
The main components of InfinitySwap are Swaps, Assets, Pools, and Tokens.
Similar to UniSwap and other DEXs, InfinitySwap's Swap function will let traders and investors trade and exchange their preferred cryptos, such as ICP, mainnet Ethereum coins, and other upcoming tokens, on the Internet Computer. This Swap function has the benefit of executing transactions with lower gas expenses than UniSwap, which is renowned for being pricey.
Transaction costs on InfinitySwap will be far cheaper than those on other Ethereum-based marketplaces. This is because the Internet Computer blockchain differs from the Ethereum blockchain in that it has substantially faster on-chain transaction speeds.
Access to ETH mainnet tokens and direct integration with Bitcoin will be another benefit. Users of InfinitySwap can swap for tokens that are not part of the Internet Computer blockchain, which they cannot do with other blockchain-restricted DEXs.
Users can add liquidity to liquidity pools on InfinitySwap's Pools feature, where they can also earn interest on their investments. AMM DEXs must include liquidity pools because they support the trading engine by supplying liquidity, which helps trades execute with less slippage. One way that cryptocurrency investors want to make money is by acting as a financial intermediary (or staking cryptocurrency in liquidity pools). This is a passive investing strategy.
Users can examine the list of available tokens, create their own IS20 standard tokens, and view the tokens they already hold on the platform by using the InfinitySwap platform's Tokens feature.
The token launch function on InfinitySwap will be comparable to that on PancakeSwap with the additional advantage of complete access to liquidity pools, which is essential for projects trying to raise money on the Internet Computer.
The creation of a new token standard called IS20 by InfinitySwap, which is absent from the Internet Computer, is a major component of this system. The trade of standardized digital assets or cryptos on a particular blockchain is made possible by token standards like ERC20. With three pillars or concepts in mind—decentralization, safety, and interoperability—InfinitySwap is seeking to develop a token standard that may be utilized for tokenization.
What are the Trading & Investment options on InfinitySwap?
Users will ultimately be eligible to vote on InfinitySwap governance, create new tokens using the IS20 standard (thereby developing new business and tokenomic concepts), and collect NFTs in the platform's native-built wallet. Users will be able to swap coins for oversight tokens to take part in governance, for investing and short-term trading purposes, and provide liquidity to liquidity pools.
Improvements and fusions of DEXs and AMMs like UniSwap and Balancer that have already been established make up one of InfinitySwap's key advances. Additionally, it will be equipped with data analytics capabilities, providing it with some CoinMarketCap-like features. With these objectives, InfinitySwap will be like Google for blockchain, facilitating traders' investment in new coins by providing information that is clear, transparent, and easy to obtain. With interfaces to the Bitcoin and Ethereum blockchains, the InfinitySwap network has the capacity to be the liquidity center once it becomes live, giving the Internet Computer access to a market cap of approximately $500 billion USD.