Wanswap is a decentralized exchange built on the Wanchain blockchain. It aims to provide users with a seamless swapping experience for various digital assets. Launched in 2021, Wanswap allows users to trade tokens securely and efficiently with the help of automated market-making algorithms. The exchange was founded by the Wanchain team, who sought to expand the DeFi ecosystem and enhance interoperability across different blockchains.
Wanswap, a decentralized exchange (DEX) built on the Wanchain blockchain, offers several benefits compared to its direct competitors.
1. **Cross-chain Trading**: Wanswap enables cross-chain trading, allowing users to swap assets between different blockchain networks. This is a significant advantage as it enhances liquidity and access to a wider range of assets compared to DEXs limited to a single blockchain.
2. **Low Fees**: Wanswap boasts low transaction fees due to its utilization of the Wanchain blockchain. This is especially beneficial for traders as it reduces costs and maximizes their profits.
3. **Decentralization**: As a DEX, Wanswap operates on a decentralized infrastructure, ensuring a trustless and censorship-resistant trading experience. Users have full control of their funds and can trade directly from their wallets, without the need for intermediaries or custodial services.
4. **Community Governance**: Wanswap is governed by its community through a decentralized autonomous organization (DAO) structure. This means that platform decisions, such as fee adjustments or listing new assets, are made collectively by token holders. This democratic governance model ensures a fair and transparent decision-making process.
5. **High Security**: Wanswap leverages the security features of the Wanchain blockchain, including its built-in privacy function and interoperability capabilities. This enhances the overall security of the platform and mitigates potential risks associated with centralized exchanges.
While Wanswap has its unique set of benefits, it's important to note that the DEX landscape is highly competitive. Other popular DEXs like Uniswap and PancakeSwap also offer similar functionalities, but on different blockchain networks (Ethereum and Binance Smart Chain, respectively). Additionally, each DEX may have its own distinctive features and user base, so it's advisable to explore and compare different options based on individual trading preferences.
Wanswap is a decentralized exchange (DEX) that operates on the Wanchain blockchain. As a DEX, Wanswap enables users to trade cryptocurrencies directly from their wallets without relying on a centralized intermediary.
The underlying technology behind Wanswap is based on Automated Market Maker (AMM) algorithms. These algorithms facilitate liquidity provision and price determination on the platform. Liquidity providers (LPs) deposit their assets into liquidity pools, allowing users to swap between different cryptocurrencies. LPs earn fees in return for providing liquidity to the platform.
The Wanswap platform utilizes the Wanchain blockchain, which is a public blockchain that focuses on interoperability and privacy. Wanchain uses a unique cross-chain mechanism to connect different blockchains, enabling seamless asset transfers and communication between them.
Wanswap's functioning is similar to other AMM-based DEXs. When a user wants to make a swap, the AMM algorithm calculates the exchange rate based on the ratio of assets in the liquidity pool. This eliminates the need for order books and matching buyers with sellers. Users can also provide liquidity to pools and earn passive income through transaction fees.
Overall, Wanswap operates on the Wanchain blockchain, employing AMM algorithms to facilitate decentralized trading and liquidity provision. By leveraging blockchain technology, Wanswap offers users a secure and transparent platform for cryptocurrency swaps while eliminating the need for intermediaries.
DIA utilizes a comprehensive approach to fetch trade data from various exchanges in the DeFi and NFT ecosystems. The process differs depending on the type of exchange being referred to.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA employs scrapers that directly collect trades from the exchange databases using Rest APIs or WebSocket APIs. The data collection frequencies may vary, ranging from 1 to 7 seconds, depending on the exchange. This approach allows DIA to have real-time access to the trade data from these centralized exchanges.
On the other hand, for decentralized exchanges (DEXs), DIA collects data directly from the underlying blockchains by subscribing to swap events in liquidity pools. This ensures that the trade data is retrieved directly from the source, increasing data accuracy. Notable decentralized exchange sources include Uniswap, curve.finance, and PancakeSwap.
In the case of NFT marketplaces, DIA captures live trading data using smart contracts integrated with these marketplaces. The retrieval period for NFT transactions ranges from 20 seconds to 1 minute, ensuring that all real-time NFT transactions are covered. DIA's approach excludes unreliable bids and offers data, providing precise and reliable NFT market information. Prominent NFT integrated exchange sources include Blur, X2Y2, OpenSea, and TofuNFT.
By employing this comprehensive data management strategy, DIA is able to provide highly accurate and customizable price feeds for various cryptocurrencies, liquidity tokens, and NFTs. This ensures that users can access reliable and up-to-date trade data from different trading platforms within the DeFi and NFT ecosystems.
When building price oracles using Wanswap trade data, DIA follows a specific process depending on the type of exchange being referred to, whether it is DeFi or NFT.
For DeFi exchanges, DIA starts with data cleaning and outlier detection. This involves removing trades that deviate significantly from the current market price, as these may be due to market manipulation or errors. DIA applies an Interquartile Range (IR) filter to exclude data points and sets that fall outside an acceptable range relative to the interquartile range. The remaining trades, which fall into the middle quartiles, are then used for further processing.
Next, DIA applies price determination methodologies to calculate the final price. One example is the Volume Weighted Average Price (VWAP), which considers the different volumes of trades. Trades from the queried time range are collected and weighted by their volume, and the weighted average price is calculated.
For NFT exchanges, the process is different. DIA determines the floor price of an NFT collection by processing the on-chain trade data in two steps. First, the data goes through cleansing filters to exclude outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point.
One methodology offered by DIA for NFT collections is the Floor Price, which provides the lowest sale price recorded on the blockchain in a given time window. To address potential market manipulation, DIA also offers the Moving Average of Floor Price, which returns the moving average of a collection's floor price. This methodology can be customized with parameters such as the length of the average or the size of the floor window.
DIA is continuously exploring and discussing custom filters and methodologies for specific use cases beyond the implemented techniques.
Overall, DIA's process involves data cleaning, outlier detection, and the application of various pricing methodologies to provide reliable price feed oracles for both DeFi and NFT exchanges using Wanswap trade data.
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.