Arthswap is a decentralized exchange built on the Ethereum blockchain. It aims to provide users with a platform to trade stablecoins and other digital assets with minimal fees and without the need for intermediaries. It was founded in 2021 by Rahul Rathi and is part of the Arth blockchain ecosystem. The name Arth comes from a Sanskrit word meaning "value" or "wealth."
Arthswap offers several benefits compared to its direct competitors in the blockchain space. One key advantage is its low transaction fees. By utilizing the Arth algorithmic stablecoin, Arthswap is able to provide users with efficient and cost-effective transactions. This sets it apart from other decentralized exchanges that may have higher gas fees or require additional transaction costs.
Another benefit of Arthswap is its focus on providing a seamless user experience. The platform is designed to be user-friendly and intuitive, making it easy for both experienced traders and newcomers to navigate. This further distinguishes Arthswap from competitors that may have complex interfaces or require a steep learning curve.
Furthermore, Arthswap offers a wide range of token options for users to trade. This includes not only cryptocurrencies but also non-fungible tokens (NFTs) and Liquid Staked Tokens (LSTs). This diverse selection allows users to access a variety of assets and participate in different markets, setting Arthswap apart from platforms that may have a more limited asset offering.
Lastly, Arthswap prioritizes security and decentralization. By leveraging blockchain technology, Arthswap ensures that transactions are secure and immutable. Additionally, the platform operates in a decentralized manner, meaning that it is not controlled by a single entity or authority. This enhances transparency and reduces the risk of manipulation or censorship.
Overall, Arthswap's low fees, user-friendly interface, diverse token offering, and focus on security make it a competitive player in the decentralized exchange space.
Arthswap is a decentralized exchange (DEX) built on the Ethereum blockchain. It utilizes smart contracts to enable users to trade cryptocurrencies and tokens directly from their wallets without the need for intermediaries.
The underlying technology behind Arthswap is the Automated Market Maker (AMM) model. This model relies on liquidity pools, which are pools of tokens that users contribute to for trading. Liquidity providers deposit their tokens into these pools, and in return, they receive liquidity pool tokens (LP tokens) representing their share of the pool.
Arthswap uses the Arth token as its native currency and governance token. It provides users with the ability to participate in key decision-making processes within the platform.
When a user wants to make a trade on Arthswap, the AMM algorithm calculates the asset ratio in the liquidity pool and uses a formula to determine the exchange rate. This ensures that trades can always be executed, even when there may be limited liquidity for a particular token.
The functioning of Arthswap involves two main features: swapping and providing liquidity. Swapping allows users to exchange one token for another by selecting the desired token pair and specifying the amount they want to trade. Providing liquidity involves depositing tokens into a liquidity pool to earn fees and help facilitate smooth trading on the platform.
By utilizing smart contracts and the Ethereum blockchain, Arthswap ensures transparency, security, and user control over their funds. It enables seamless token swaps and provides opportunities for users to contribute to liquidity and earn rewards.
DIA employs a comprehensive approach to fetching trade data from various DeFi and NFT exchanges. The process varies depending on the type of exchange being referred to.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA utilizes scrapers to directly collect trade data from the exchange databases. This is achieved through Rest APIs or WebSocket APIs, allowing DIA to access the most up-to-date information. The frequency of data collection ranges from 1 to 7 seconds, depending on the specific exchange.
In contrast, for decentralized exchanges, DIA retrieves data directly from the blockchain itself. By subscribing to swap events in liquidity pools, DIA can capture trading data seamlessly. This approach ensures data accuracy by eliminating the need to rely on unreliable bids and offers. Popular decentralized exchanges integrated with DIA include Uniswap, curve.finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data in real-time from integrated marketplaces' smart contracts. With a retrieval period ranging from 20 seconds to 1 minute, this method covers all NFT transactions, providing a comprehensive view of the broader NFT market. Notable NFT integrated exchange sources include Blur, X2Y2, OpenSea, and TofuNFT.
DIA's comprehensive data management strategy allows them to source granular trade data from a wide range of exchanges, ensuring high precision and accuracy in their price feeds. Whether it's centralized exchanges, decentralized exchanges, or NFT marketplaces, DIA's processes are tailored to each type of platform, enabling them to provide highly accurate and customizable price feeds for their users.
DIA uses a two-step process to build price feed oracles using Arthswap trade data. The process differs depending on whether we are referring to a decentralized finance (DeFi) exchange or a non-fungible token (NFT) collection.
For DeFi exchanges, DIA starts by cleaning and filtering the trade data. This involves removing outliers and data points that deviate significantly from the market price. They use an Interquartile Range (IR) filter to identify and exclude trades that fall outside of an acceptable range relative to the interquartile range. This helps to avoid using data that is completely away from the median.
Once the data is cleaned, DIA applies price determination methodologies to calculate the final price. For example, they may use the Volume Weighted Average Price (VWAP) methodology, which takes into account the different volumes of trades. They may also use the Moving Average with Interquartile Range Filter (MAIR) methodology, where trades are ordered by timestamp and weighted against volume.
On the other hand, for NFT collections, DIA follows a different process. They first cleanse the on-chain trade data to exclude market outliers and manipulation techniques. Then they apply pricing methodologies to determine the floor price of the NFT collection. The simplest methodology is the Floor Price, which provides the lowest sale price recorded on the blockchain. However, this method is susceptible to manipulation. To address this, DIA offers more advanced methodologies such as the Moving Average of the Floor Price, which takes into account multiple customizable parameters.
By using these processes and methodologies, DIA is able to compute trade data from Arthswap and build price feed oracles for both DeFi exchanges and NFT collections.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.