Token swap platforms gain tremendous popularity in the cryptocurrency space. It is a convenient way of converting between tokens without signing up for an account. More importantly, swap platforms are user-to-contract interactions, ensuring funds are accessible immediately.
The Growth of Swap Platforms
Unlike traditional exchanges and trading solutions, a swap platform is far more straightforward. It lets users connect their wallets to the platform to trade via smart contracts. There is no need to create an account or deposit funds before having the ability to convert it. Removing any friction from this equation is essential.
As an empowering solution, swap platforms are of great importance to cryptocurrency users globally. As a result, several platforms have become popular in this segment, each trying to add its flavor to the mix. As a result, more competition in this space is healthy, as it will usher in innovations to make cryptocurrency more appealing to the mainstream.
Uniswap is A Market Leader
When talking about swap platforms- or decentralized exchanges – Unsiwap is a name people will come across often. As an Automated Market Maker (AMM) platform, it has a lot of functionality to explore. The main option is to convert between supported assets on the platform directly from one’s wallet. Uniswap has hundreds of markets and trading pairs to investigate, putting it on the same level as the biggest cryptocurrency exchanges.
None of this is possible without sufficient liquidity, which coin developers and community members provide. Through the liquidity pools, users can earn trading fees from every transaction that occurs. Thus, it is a viable way of earning passive income, so swapping platforms are so popular. The only downside to Unsiwap is how it runs on Ethereum and can suffer from fees of $100 or more during network congestion. That may change with the ETH 2.0 upgrade and integration of Layer Two scaling solutions.
Pancakeswap Dominates Binance Smart Chain
On the surface, there are many similarities between Unsiwap and Pancakeswap. Their models are nearly identical, yet there is one key difference. Unlike Uniswap, Pancakeswap runs on the Binance Smart Chain. An intriguing ecosystem that is much faster, cheaper, and efficient than Ethereum is in its current form. As a result, Pancakeswap is the leading DEX and swap platform for BSC users today, even though other platforms fight for ecosystem traction.
While Pancakeswap is a competitive DEX on an alternate blockchain, its overall trading volume is roughly half of Uniswap’s. Not a bad amount, yet it confirms Ethereum remains the go-to blockchain for token swaps these days. The big question is whether that will remain the case for much longer.
WanSwap Throws Its Hat In The Ring
Although most people seem to be unaware of the Wanchain ecosystem, it grows by leaps and bounds. It is also one of the few ecosystems focused on enabling cross-chain transactions at an early stage of development. For example, becoming a distributed network requires connecting and exchanging value between different blockchains. That focus has culminated in creating various DApps, including WanSwap. It is one of the top decentralized applications for WanChain and provides similar AMM and swap features compared to Uniswap and Pancakeswap.
Per the platform’s statistics, WanSwap is doing rather well. It has nearly $30 million in liquidity and facilitates over $4.25 million in weekly volume. Those numbers are more than respectable for an ecosystem that isn’t often mentioned. Moreover, with support for assets such as wanUSDT, wanUSDC, wanXRP, and wanBTC, there are many trading pairs for users to experiment with.
— Wanswap, the Cross-chain AMM DEX (@wanswap) June 23, 2021
It is good to see multiple blockchains embrace the token swap model. Users should be able to freely interchange between assets within the same ecosystem without relying on centralized exchanges. Solutions like Uniswap, Pancakeswap, and WanSwap play a crucial role in this equation. These platforms are successful in their own way and highlight the future potential of decentralized and non-custodial token swaps.
The one advantage WanSwap has over the others is its native support for cross-chain transactions. When WanSwap taps into that potential, exciting things are bound to happen in the months and years to come. Accessing broader liquidity and trading pairs will create some new options for users to explore.