AnySwap Project Insight: A Decentralized Cross-Chain Swap Protocol

AnySwap continues to innovate in the De-Fi space, integrating secure, cheap, and simple cross-chain swaps.

By
Greg Gotsis
on
December 17, 2020
Category:
BSC News

AnySwap

Anyswap is a decentralized cross-chain swap protocol that runs on four different networks. Anyswap allows users to effortlessly swap tokens across these networks using its Automated Market Maker (AMM). Anyswap specifically support coins on blockchains that are compatible with ECDSA or EdDSA signature algorithms. This allows users to swap between some of the largest tokens such as BTC, ETH, USDT, XRP, LTC, and FSN.


Key Features

--Seamless & Decentralized Cross-Chain Swaps


--ANY Governance Token


--Liquidity and Swap Incentives


--Low Tx Time & Cheap Fee's


What/Why AnySwap

Anyswap launched on the Fusion blockchain and leverages its Decentralized Control Rights Mechanism (DCRM) to create interoperability. For those who wish to learn more about Fusion Networks' technology, follow the previous link. 

This allows Anyswap to integrate itself onto multiple blockchains such as the ETH network and the Binance Smart Chain (BSC). Due to the capabilities of DCRM, Anyswap can offer more secure, cheap, and robust swaps in comparison to many competing cross-chain swap protocols.

Overall, the technology allows Anyswap to create a completely decentralized platform that supports cross-chain swaps and a token bridge.


Tokenomics

Anyswap has a reasonably high inflation schedule (~86,000 ANY daily), making it an inflationary token. This model is pretty standard for most AMM and swap platforms, as they need to incentivize liquidity. Currently, ANY is feeling the effects of an inflationary governance token, as it is around all-time-lows. While this may seem alarming, it is essential to understand that many users are earning ANY at a rapid rate, growing their total allocation of the token.

My typical rule of thumb for inflationary tokens is to earn them through LPing "stable" assets. These tokens carry an extremely high risk as the value is typically derived from the product's direct performance. On top of this there is a constant sell-side pressure from liquidity providers who are realizing their ANY rewards constantly (selling). Overall this is not an alarming outcome for the ANY token, and selling pressure will wane as circulating supply increases.

Anyswap also incorporates its fee structure to incentivize users and fund the future developments of the project. All transactions facilitated through Anyswap incur a 0.4% transaction fee. These feel are allocated to the Liquidity Providers (LP) - 0.3% - and the Anyswap Company (0.1%). This system incentivizes LP providers to provide liquidity to the platform even when block rewards for ANY are reduced.


Liquidity Providing + Rewards

 As tabulated above, 85 million ANY is allocated as LP rewards. Currently, the block reward is 8.5 ANY per Fusion block; each Fusion block is ~13 seconds. This emission system will continue for a total of 10 million fusion blocks. Anyswap has allocated the rewards as follows:

  • 10 million ANY for "Cross Chain DCRM Node Rewards ". 


  • 15 million ANY for "Liquidity Rewards". 


  • 15 million ANY for "Team Rewards" 


  • 20 million ANY is allocated to the shareholders of Anyswap company.


  • 25 million ANY for "Swap and Trading". The "Swap and Trading" funds will be used to motivate swap traders.


For liquidity providers, about 9900 ANY is distributed every 24 hours (about 6600 blocks), which are then distributed to users based on their liquidity allocation. Users with the largest percentage of the liquidity pool will receive the most rewards.

On top of liquidity rewards, Anyswap also offers Swap and Trading rewards. Every 100 blocks 250 ANY are distributed to users who swap. This system accounts for the users' trading volume during the period and distributes the ANY proportionally, prioritizing users who trade more volume.

Finally, node operators also receive ANY rewards on a 24 hours (6600 block) basis. Across all Anyswap Working Node (AWN) runners, 6600 ANY will be allocated to them.

This rewards are crucial to the project as it allows Anyswap to bootstrap liquidity, node operators and even individual users. These tokens will derive value based on the fact that it enables users to participate in the ANY governance.


Governance

ANY is the governance token for Anyswap, and it is issued to users on the Fusion Chain. Users who own this token will be able to vote on a variety of issues regarding the protocol. Anyswap team has announced the following use-cases:

1. Vote for adding supported chains

2. Vote for electing Anyswap working node (AWN)

3. Vote for changing governance rules proposals

Concluding Thoughts

Cross-chain swaps are becoming ever more crucial in the crypto space as there are only an increasing number of chains and tokens that users need to swap. Anyswap allows users to do precisely this, effortlessly. Through leveraging Fusion Networks technology, Anyswap can provide decentralized, secure, and cheap swaps for any user. Anyswap continues to expand its available token bridges, recently on-boarding the Binance Smart Chain.

Overall, Anyswap offers cunning edge technology and gives users a solution to cross-chain transactions. I will note that the Cross-Chain liquidity platforms and AMM's are becoming highly saturated. Only a few of these protocols will dominate a majority of the market share; the unknown question is, which will outperform the others.

It is always important to undergo your research and perform your own due diligence when making financial decisions for those exact reasons.

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Greg Gotsis

Greg is a co-founder of BSC News and Solana News. He is also the current editor in chief where he pursues crypto and decentralized finance research. In his free time he finds himself in nature, surfing, or learning piano. His bags are heavy with Solana NFTs, CAKE and multichain DeFi protocols.

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