With the DeFi space gaining a lot of traction over the past year, protocols like Uniswap have taken center stage. Since it is a protocol that facilitates the swapping of tokens on the Ethereum Blockchain without intermediaries in a permissionless environment, its acclaim has skyrocketed. But every successful protocol has some strings attached to it. With Uniswap, the issue was the toll the protocol took on the Ethereum network. Over 18,000 ETH is being spent as gas fees on the network per day. With such rising prices, users are being forced to chime in more gas fees than usual, and the lack of scalability is crowding the already busy network. The solution? Falconswap.
Falconswap – The timely solution for a growing quandary
Falconswap is a protocol that is built on Uniswap, and it acts as a layer-2 scaling solution. It functions as an aggregator for other DeFi protocols like Mooniswap, Kyber, Balancer, etc. The protocol aggregates all orders placed on various DeFi platforms before sending them to liquidity pools. Another notable feature of this robust solution is that it functions as an order matching engine that promptly matches orders in layer 2 itself and sends the rest to other exchanges like Uniswap. Falconswap overcomes some severe drawbacks of the regular DEXs, such as high transaction fees, slow transactions, lack of privacy, and unpleasant user experience.
Falconswap Vs Uniswap – What’s more suitable for the user?
Consider this trade on the Uniswap protocol. 2 buyers are buying 4ETH and 2ETH worth of tokens, respectively and, 2 sellers are selling 4ETH and 6ETH worth of tokens, respectively. In Uniswap, the users will need to pay 4X the gas fees per order. On top of this, the issue of slippage is there as well. Users will have to pay a higher price for transactions since their orders are distributed among several liquidity pools.
When the same orders are placed on Falconswap, the results are quite different. In this platform, the 6 buy orders will be matched with the 6 sell orders. The remaining 4 orders will be distributed among other liquidity pools like Uniswap. Orders processed and executed on Falconswap will face no slippage, and the gas fees have remarkably economized. Therefore among the two, Falconswap emerges as the winner with its unrivaled user benefits.
Extensive benefits and advantages of the Falconswap protocol
- It gives users very low trading fees since orders are aggregated and distributed on various liquidity protocols
- Reduced slippage since larger liquidity is available to execute orders
- Falconswap is a layer 2 matching platform so orders can be matched instantaneously on this level before moving it to other exchanges
- It has exceptional privacy, so trading can be facilitated without fear
- It provides faster transactions in comparison with other DEXs
- Users can participate in liquidity mining and earn FSW tokens as rewards
- Since the platform is non-custodial, users can trade with no doubts on matters regarding security since private keys enable trading
- Since private keys are integrated, users will have complete control over their assets
- Falconswap can aggregate orders from various exchanges such as Mooniswap, Balancer, Kyber, etc.
FSW Tokens – Utility and benefits
The FSW Token is meant to incentivize the protocol users and token holders, and it does this by offering a slew of benefits. Some of these perks include –
- FSW token holders will receive an additional 50% discount on trading fees
- Extra FSW tokens are distributed to the FSW token staking holders. This is made possible by using a percentage of the fees collected on the protocol
- Another set of FSW tokens are supplied to the token staking holders from the fees that were saved by the Falconswap protocol at the layer 2 level
- 10% of the trading fees collected will be used to burn FSW tokens
- Liquidity miners on the Falconswap protocol who hold the tokens receive discounts and those who stake them earn other rewards as a result
How is your business going to benefit by launching a DeFi protocol like Falconswap?
The current existing DeFi infrastructure cannot cope with market volatility. This was evident when the price of ether dropped dramatically in 2020, crashing the market. This brought to light the issue of scalability, which was prominent in the Ethereum network. And as a viable solution, second-layer protocols like Falconswap proved beneficial. Jack Tao, CEO of Singaporean-based exchange Phemex, said, “DeFi opens a brand new world with its own set of rules, creating an opportunity for established firms to participate as a source of education and knowledge on how to properly use these emerging products. The idea of decentralized finance does have a lot of inherent value”. With more secure and faster transitions, transparency, and accountability, DeFi protocols are here to stay for the long run. So entrepreneurs and business owners can step into this lucrative sector with a DeFi protocol like Falconswap that transcends many drawbacks found in the DeFi space.
Infinite Block Tech is a pioneer in all DeFi related developmental solutions
With several years of experience up our sleeves and a dexterous team of blockchain engineers and DeFi enthusiasts, our developmental services are guaranteed to surpass your expectations. Our DeFi protocol, like Falconswap, will be fitted with the latest features and technology, making it stand out from the competition. Since all our solutions are 100% scalable and customizable, your unique ideas and plans for this project are taken into full consideration.