Jackson News Reporter

It’s hard for people outside the DEX enclosure to come in and make a splash. It’s also hard for people in the DEX enclosure to go out and diversify their operations.

Uniswap, Pancakeswap, Sushiswap and other giants have built a solid siege in the DEX circuit. This siege makes it hard for new players to come in and win a place. At the same time, it also makes it difficult for these 3 giants to get out of the dilemma of a single profit model based on transaction fees.

From the third-party quotation platform, it can be seen the competitive advantages of the head platforms and other platforms of DEX and track them in terms of user volume, trading volume, TVL, protocol fee, and market value of platform tokens, as well as the reality of the high number and low competitiveness of the non-head DEX. Although DEX is so competitive, its position in the DeFi ecosystem and its money-making effect still make many innovators brave enough to try it at the risk of the market. For example, CoinSwap, the world’s first decentralized cloud trading protocol, is one of many innovators. So, how do weak market innovators stand out?

The answer is branding, innovation, a new DEX industry philosophy, and a differentiated competitive strategy. This article will then use CoinSwap as a case study to provide an exploratory answer to the question of how a weak DEX innovator can survive or rise to the top.

About the Brand

CoinSwap’s domain name is CoinSwap.com, a brand and domain name almost comparable to CoinBase and the most consistent with the characteristics of a decentralized exchange, which is basically unforgettable to anyone who has seen it.

The DEX Circuit Needs Innovation

In order to gain a deeper understanding of CoinSwap’s industry philosophy and the need and significance of its differentiated competitive strategy, it is also important to have the necessary understanding of AMM’s common model.

Just like Uniswap, PancakeSwap, and Sushiswap, CoinSwap also provides users with functions like trading, liquidity and mining rewards, as well as platform tokens, NFT / platform token airdrop rewards for initial users, and also uses transaction fees as its main source of revenue.

Meanwhile, compared with Pancakeswap, CoinSwap also sees the advantages of high TPS and low the low gas fee afforded by BSC. CoinSwap will also build GameFi products. CoinSwap’s platform tokens will also be burned and have strong deflationary properties referring to the deflationary economic model of BNB and ETH. 

Compared to Sushiswap, CoinSwap also provides liquidity migration features and will also provide users with rich types of financial products, such as lending and staking.

Form1: Same point of AMM, 2021/9/16

However, homogeneous competition makes the whole DEX track seem dead. Imitation does not bring transcendence. Therefore, the DEX track needs innovators to break the wall built by the 3 giants and give the DEX landscape a fresh world experience.

Will CoinSwap’s new DEX philosophy and its secret weapon of differentiated competition strategy make it an innovative force in the DEX circuit and push the DEX circuit into a new era?

The answer is not yet known. But what is known is that the times make the heroes.

Just as Uniswap became the dominant player in the DEX track through AMM technology innovation, CoinSwap will rise to the top of the DEX track through its new DEX industry philosophy. The new DEX philosophy proposed by CoinSwap is the concept of Decloud (DEX Cloud) and the vision of Dex metauniverse, to build the world’s first decentralized cloud trading protocol, to customize a Dex for users simply and quickly, and to construct a Dex metauniverse for users to build, share and govern together, and to be the first DEX metauniverse in the world.

The New Dex Philosophy

CoinSwap introduces the cloud and metauniverse into the DEX space. Its role or significance is comparable to that of AMM for DEX. As for what Decloud (DEX Cloud) and DEX metauniverse are, why they are so important to DEX and why they are a new DEX philosophy –  I will explain in detail for you in a later series of articles, as that is not the focus of this post.

Differentiated Competitive Strategy 

In addition to the new Dex philosophy, CoinSwap will also differentiate itself like Uniswap’s fork Sushiswap, Pancakeswap by differentiating itself on the economic model or diversified products and market segments. After all, this differentiated competitive strategy helped them to win a place in the market and even surpass Uniswap in terms of TVL or trading volume.

Form2: Differentiated competitive strategy of CoinSwap, 2021/9/16

For example, in terms of transaction fees, CoinSwap has made two differentiated plays. The first is that CoinSwap’s platform token COINS can offset 50% of the commission; the second is that CoinSwap’s regular NFT nodes can enjoy a 25% rebate on the invitation fee, and super NFT nodes can enjoy a 40% rebate on the invitation fee.

Compared to Uniswap, Sushiswap, Pancakeswap, how much value can these 2 differentiated plays bring?

I will give an example. It is reported that the percentage of transaction commission fees for Uniswap V3 and Sushiswap V2 and Pancakeswap V2 are 0.3%, 0.3% and 0.25% respectively. And CoinSwap’s COINS can offset 50% of the transaction fee, and the actual transaction fee is as low as 0.15%. Compared with the transaction fee rate of Uniswap V3 and Sushiswap V2 and Pancakeswap V2, CoinSwap’s transaction fee rate can help users save 50% or 40% of the transaction cost fee.

If you trade 100,000 USDT, the cost you need to pay are 300 USDT, 300 USDT, 250 USDT in Uniswap V3, Sushiswap V2 and Pancakeswap V2 respectively. While in CoinSwap, you only need to pay 150 USDT using COINS to pay for fees. If you are a NFT node, you will be given a 25% invitation fee commission, and only need to pay 112.5 USDT. If you are a NFT supernode, you will be given 40% of the invitation fee commission, only 90 USDT is actually required.

At the same time, the COINS involved in the “Using COINS to pay for fee” are burned directly and will not enter the market for secondary circulation, which is like EIP-1559 of ETH, continuously burns and deflates platform tokens. When the price of platform tokens is low, the number of platform tokens offsetting burn will increase, and this again makes a good support for the price of platform tokens.

In the case security and depth can be guaranteed from the perspective of saving money and it is self-evident to choose which platform for trading.

In terms of LP reward. Uniswap V3 transaction fees will be distributed to LPs at a tiered reward rate of 0.05%, 0.3%, and 1%. sushiswap V2 transaction fees will be distributed to LPs at a rate of 0.25%. Pancakeswap V2 transaction fees will be rewarded to LPs at 0.17% and 0.05% for buying back and burning platform tokens. CoinSwap’s transaction fees will be awarded to LP at 0.15% ~ 0.25% minus the invitation rebate and  protocol fee portion. However, NFT nodes can enjoy 5% liquidity mining invitation bonus and NFT supernodes can enjoy 10% liquidity mining invitation bonus. If you have community or marketing resources, which platform would you choose to do LP?The answer is also self-explanatory.

In addition, currently trading, providing liquidity or migrating liquidity on CoinSwap also enjoy the opportunity to get airdrop COINS. As for the economic model or value of COINS, it will also be introduced in a subsequent article.

Nothing, or an opportunity.

Compared to Uniswap, Pancakeswap and Sushiswap, a newly launched DEX innovator like CoinSwap doesn’t have that high trading volume, that high TVL, that many users, that high market position and visibility, or that high of a valuation. There will always be investors who love to compare early stage innovators to industry giants and use these dates to evaluate early stage innovators as an important basis for participating in deals or investing.

However, I would say that it is meaningless to compare these of a new project that has just recently launched and still needs to grow to the size of the industry’s giants. Because countless facts prove that any powerful market giant has a growth process and grows up from weak innovators. Likewise, there is no big project that stays strong.

The breakers come from the amass of the innovators. So, what should we think of the new forces in the DEX track?

Wise people say that one should remain open and passionate about new things. Similarly, we should also stay open and passionate in the face of the doubters that don’t recognize real innovation until it’s obvious. We should see the new opportunities and dividends brought by innovative forces such as CoinSwap as the future of DeFi and the DEX world.

CoinSwap.com official contact information:

Website: https://coinswap.com/

Twitter: https://twitter.com/Coinswap_

Medium: https://medium.com/@CoinSwap_

Telegram: https://t.me/Coinswap_EN

E-mail: [email protected]

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Company Name: Coinswap
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Website: https://coinswap.com/