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Read our article to learn more about MetisDAO:
Netswap is a decentralized exchange (DEX) running on the Metis Andromeda. Unlike most DEXs, Netswap is created on a Layer 2 protocol, Metis Andromeda, rather than a Layer 1 blockchain.
The AMM model that Netswap utilizes is similar to that of Uniswap. However, Netswap is faster and has cheaper transaction fees as transactions are processed on an L2 that is less crowded. Security and decentralization of blockchain are not compromised as Metis Andromeda uses Ethereum as its base layer.
What’s possible with Netswap
The Netswap team believes that the affordable and scalable infrastructure of Layer 2s will help businesses and dApps to leverage blockchain technology fully. The protocol supports tokens irrespective of whether they have been bridged from other chains or are native Layer 2 tokens issued by dApps.
Netswap embraces innovation and partners with like-minded companies. For instance, its partnership with WOWswap provides a built-in leverage swap function with 5X leverage. Uniswap has to keep liquidity pools with every network it interacts with; conversely, Netswap uses innovative tools such as bridges to eliminate this requirement.
Netswap is more than a token-swapping platform for users:
- Leveraged swaps. This may sound complicated, but Netswap offers 5X leverage swaps. Users can leverage and short token pairs and engage in complex swaps with higher return profiles. The partnership with WOWswap makes it easy for Netswap to provide leverage. You can make a short swap to borrow Y number of tokens from a liquidity pool, trade with them, and pay back the loan with interest.
- Launchpad. Users can stake NETT to earn their launchpad allocation token, wNETT, and gain exclusive access to early investment opportunities There are hundreds of dApps released every month. Some have tokens, but getting exposure has always been challenging. Netswap’s launchpad helps projects launch and gain more exposure.
- Liquidity pooling and staking. Netswap offers liquidity providers a chance to earn an additional profit. The platform collects a 0.3% fee from every transaction with 0.05% going to the Netswap treasury, and 0.25% going to liquidity providers. Additional yield can be generated by staking the native token to collect a share of protocol revenue.
Netswap is a community-driven decentralized exchange with $NETT as the governance token. The 100% community-focused token distribution model ensures that all the tokens are distributed to the community with nothing allocated to the team or advisors.
100,000,000 NETT tokens will exist, 99% of which were released during the first minting phase.
Holders of $NETT can participate in the following ways:
- Modification to the liquidity pools: Some of the major liquidity pools listed on the platform are $m.USDT, $m.USDC, and $METIS, these pools are the basis of token distribution. Any community member is at liberty to vote for the inclusion of new liquidity pools to the platform.
- Stake in the launchpad: Users can stake NETT tokens on the launchpad and get new tokens of the project launching.
- Activate swap mining programs: Users can vote to change the emission rate or supply of $NETT after five years. The community will be governed by holders of NETT tokens.
- Builder Mining Rewards Giveback Plan. Netswap is already in partnership with Metis, which has a program dubbed Builder Mining where it shares 30% of transaction revenue with its partners. Netswap is one of the partners and has decided to share the payments with its users. The Giveback plan is already in place where 50% of the METIS tokens earned are placed in the Netswap staking pool where users stake $NETT and earn $METIS; 40% of the accumulated $METIS is directed to the Netswap Farm while the remaining 10% will be reserved assets.
- Trading competitions. Netswap will hold several trading competitions throughout the year to boost liquidity and trading volume and gain some good publicity
- Launchpad upgrade: The current launchpad is not final. The upgrade creates an in-depth connection between the NETT token and the launchpad. The dream is to help projects quickly start on Andromeda and grow their value.
- UI upgrade: Typical DEXs can be complicated for DeFi novices. Netswap intends to create a more comfortable and efficient platform for all types of users.
Netswap has launched some amazing features and has several others in the pipeline. One major milestone is reaching $2 billion in trading volume, and we hope the platform keeps soaring. The fact that Netswap is built on an L2 gives it a competitive advantage over other decentralized exchanges characterized by high transaction fees and slow trade executions.