Decentralized exchanges and automated marketplace makers have taken a central stage in DeFi as well as the entire cryptocurrency industry, in general.
Looking at DeFi Pulse data, Uniswap is currently the third-largest protocol depending on total value locked inside it, eyeing a whopping $6 billion.
Sushiswap is also in the top 10, and it features over $4 billion in TV. This says the fact that market is ripe just for solutions of this kind as investors look for additional way of interacting with cryptocurrencies, drifting away from centralized solutions.
However , this doesn’t imply that Uniswap and Sushiswap, along with other similar DEX solutions, don’t have their problems. Slippage is probably the most common challenge, and you will find already players trying to deal with it. Bazarswap is one of them.
What is Bazarswap?
Bazarswap is a new kind of decentralized exchange (DEX) operating with tokens based on Ethereum’s ERC-20 protocol standard.
Unlike Uniswap, customers can “set for sale” various ERC-20 tokens, giving their own price parameters. Basically, instead of relying on the current selling price, every user can market their ERC-20 at the preferred price.
The protocol was launched by the Minereum team (MNE). All ERC-20 tokens can be added for sale, and in this sense, Bazarswap functions as a decentralized peer-to-peer (P2P) exchange. Let’s have a look at the working process.
How Does Bazarswap Function?
One of the first points to consider above the exchange with the current set of capabilities is some of its inherent benefits. These include:
- Peer-to-peer trading.
- No slippage.
- No exchange fees (for now – at some point, this may change, according to the official website).
- Entirely decentralized.
- Support for everyone ERC-20 tokens.
- The tokens are never used in the exchange, and they stay in the seller’s address till they are bought.
The way it works is actually simple. Users need to “set for sale” an ERC-20 token they have in their pocket and select the desired price.
Once this is accomplished, they are free to transfer or even deposit more coins without any restrictions – this will display the new balance to potential buyers on Bazarswap. Only when somebody buys will the balance of the seller get reduced using the respective amount.
If the seller transfers all the coins out of the wallet, the exchange automatically identifies this and removes the order from trade pages. Nevertheless , if, at some point later, the vendor transfers the tokens back to the wallet, it will be proven for sale again without any further action.
Then is a buyer, the amount they will purchase is sent to all of them, and the seller receives ETH automatically.
Of course , there are certain drawbacks with this design – there’s always a risk that your tokens might not be bought because there are no retailers, but that’s an inherent disadvantage of any peer-to-peer exchange.
In any case, the whole process is particularly easy because all you need to do is intuitively follow it on the website while hooking up a wallet such as MetaMask, for example.
To stimulate the growth of the platform and further its trigger, Bazarswap is giving away as much as 6 ETH through the Minereum Lucky Draw Tickets. To get a ticket, users need to go to Bazarswap, set a token balance for sale, and declare their free tickets on the Minereum website.