forbitswap — The fastest and most advanced multichain AMM/DEX
DeFi on Aptos is still in its infancy. Because there are few unified exchanges for Aptos assets, it’s nearly impossible for new tokens to get liquidity. Furthermore, there are few investment opportunities on Aptos, which provides little incentive to keep assets on-chain. To fulfill Aptos’s mission of safe development, and built with user experience as a core focus, there needs to be a strong liquidity foundation to support its growing DeFi ecosystem.
Introducing forbitswap: The fastest and most advanced multichain AMM/DEX
Our team is excited to announce our long-awaited reveal of forbitswap, an automated market maker (AMM) decentralized exchange (DEX) featuring a Prediction Market. forbitswap’s focus is to improve user experience and make the trading process much more seamless. We are a multi-chain All-in-one DeFi platform that provides diversified products such as AMM, Decentralized Prediction Market, and more.
In the near future, our first aim is to operate smoothly on Aptos and further we will expand to other chains.
What is the focus of forbitswap?
We are aiming to be a trader-focused DEX. forbitswap is a DEX AMM protocol for Aptos assets. Furthermore, we will soon expand to BNB Chain, Arbitrum, and Polygon. At its core, forbitswap enables users to:
- Trade
- Add liquidity
- Farm (Comming soon)
- Stake
- Bridge (Comming soon)
- Prediction Market
- Experience our unique function: Insurance (more details coming soon)
The forbitswap platform is a blockchain protocol that uses automated market makers (AMMs) and liquidity pools to facilitate peer-to-peer trading. Liquidity providers add tokens to forbitswap pools and are rewarded with a fee proportional to their share of the pool. forbitswap platform enables peer-to-peer (P2P) cryptocurrency trades that execute without order books or a centralized intermediary.
The forbitswap platform achieves this with a liquidity pool model that uses automated smart contracts to enable prospective traders to access competing user-funded token reserves as the primary source of market liquidity. forbitswap protocol is a user-friendly front-end application, we offer some of the most optimist AMM protocols.
How does forbitswap work?
The key innovation that makes the forbitswap protocol work is AMM technology. An AMM is a smart contract that manages the forbitswap’s pools and provides the tokens which are used to effectuate a trade. When a trade is made, forbitswap’s AMM algorithm determines the token’s effective price based on the supply and demand dynamics between the involved tokens in these liquidity pools. Each pair of tokens has its pool initialized via the Factory contract, and initial deposits are made to the pool in order to provide liquidity. The token’s exchange rate is calculated based on the supply and demand of two tokens in the pool, which is called the ‘constant product’ formula. With this formula, token values in a particular pair are calculated based on supply and demand, where the value moves along a curve of the formula: x * y = k.
Fee Structure
In exchange for providing liquidity to a pool of two assets, liquidity providers (LPs) earn x% of the pool’s trading fees. In the future, part of this fee will go towards $x token holders. More details on this staking mechanism will be coming soon.
Insurance
Insurance may not be the most exciting part of crypto, but it is a key missing piece in DeFi today that did not get the must-have attention. Especially, the demand for DeFi insurance products increased tremendously after many rug-pulls, the Three Arrows Capital scandal, stETH’s depeg and the domino of the lending bubble collapsed.
The lack of liquid insurance markets prevents the maturation of DeFi and holds back additional capital from participating. However, Binance was one of the leading parties that provided insurance to secure users’ funds. Inspired by that, forbitswap is introducing our own insurance products operates especially in the DeFi space.
Details about this product will be announced later.
The forbitswap road ahead
AMM based Decentralized Exchanges has gained massive traction with the revived interest in blockchain and distributed ledger technology in general. And we, forbitswap, as an AMM that plays an integral part in the Decentralized Finance (DeFi) ecosystem, are trying to build the most advanced product that can provide the best quality AMM DEX with multiple utilities on different chains.
Forbitswap is a general AMM framework describing the economics and formalizing the system’s state-space representation. Instead of solely matching the buy and sell sides, AMMs employ a peer-to-pool method and determine asset price algorithmically through a so-called ‘conservation function’. Compared to centralized exchanges, AMMs exhibit the apparent advantage of decentralization, automation, and continuous liquidity.
Nevertheless, AMMs typically have some drawbacks such as high slippage for traders and divergence loss for liquidity providers. To tackle this, forbitswap employs our framework to systematically compare the top AMM protocols’ mechanics, deriving their slippage and divergence loss functions. We further discuss security and privacy concerns associated with AMM DEXs and conduct a comprehensive literature review on related work covering both DeFi and conventional market microstructure.
Through leveraging Aptos’s great technology, our focus on traders, and our attractive theming we hope to provide the best trading experience in DeFi. Not just that, we promised to keep updating and developing our products to serve our customers’ needs on multiple chains such as Arbitrum, BNB Chain, and Polygon.
For Updates and Discussion:
- Website: https://forbitswap.com/
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