You may have herd about decentralise exchanges, in short DEXs like Uniswap and others. In this article we'll explore one such DEX which is aiming to build the trading platform with all pros and without all cons of DEXs.
So let's dive in...!!
What Is AirSwap ?
As I already mentioned, AirSwap is a peer-to-peer trading platform which is built by accepting all good features of decentralised exchanges and neglecting the vulnerable features. So overall we can call it a hybrid exchange. Similar to other DEXs a user can exchange ERC-20 tokens directly to each other. Since the platform does not hold any of the traders token it is a decentralised exchange.
Two parties, traders communicate each other on the platform on which token to exchange and at what price, once both traders agreed on the trade, the trade gets executed through the swap protocol (it's an Ethereum protocol)
Vulnerabilities In DEX & CEX
Before understanding the features of AirSwap let's understand few vulnerable things in decentralised exchanges as well as in centralised exchanges.
In case of centralised exchanges the users i.e the traders have to trust on third party for various things like safely storing their assets, not to get hacked, not breaking institutional laws and regulations and many of such things. On the other hand, in case of decentralised exchanges all the trades happen completely on blockchain using smart contracts, they're vulnerable to following:
- Front Running
In this situation some traders can manipulate the trades or the prices of asset by putting their transactions first.
- Slow Speed
Recently you may have herd about the congestion of Ethereum network, which results in high gas fees and slow transaction speed.
- Privacy
When it comes to using internet, privacy is one of the most important thing. And since in decentralised exchanges trading happens in public order book where anyone can see any trade.
How AirSwap Tackles Those Vulnerabilities ?
Since at AirSwap, trade execution happens directly from one wallet to another at the same time, there are no chances for front running. And as the negotiations happens privately, which aren't stored on blockchain, the privacy of the trade is maintained. And finally, due to zero maintenance and custody required, the platform has zero fees.
Who Invented AirSwap ?
Michael Oved, Sam Tabar and Don Mosites are the co-founders of the AirSwap and some popular personalities in the crypto world are in their advisor team like Mike Novogratz the CEO of Galaxy Digital and Joseph Lubin the CEO of ConsenSys.
Native Tokens
AST is a native ERC-20 token of AirSwap platform. You can swap other ERC-20 tokens for AST tokens on AirSwap or you can buy them on other centralised exchanges like Huboi and Binance.
Unlike other exchange's native tokens, which are used to pay for trading fees to get some discounts, here at AirSwap AST tokens are used to broadcast the trade signals on index where anyone can search for free. The minimum stake for the broadcast is 250 AST per intent to trade.
Future
The popularity of DEXs are increasing day by day and it's reflecting in the monthly trading volume. Although peer-to-peer trading has it's own challenges like not getting the accurate peer at the instance and all, but AirSwap is working on adding new features and improvements. You can also 'request a feature' to the team through the UI of their website, this shows that the AirSwap team is open for all suggestions and improvements.
But still there's very high competition in the crypto exchanges and even in DEX sector, so AirSwap has to work hard and stay competitive. Only the time can reveal the success or failure of AirSwap.
You can visit and explore the AirSwap platform, checkout their official website : https://www.airswap.io