Fast and Affordable Transactions with Levinswap Trading Protocol (xDai chain)

It is not easy to overstate how high the Gas price is to use ETH lately – this is becoming apparent because if you consider ETH token price, you would have to acknowledge that it is booming. Gas refers to the pricing value necessary to run a transaction successfully or to execute a contract on the Ethereum blockchain for anyone who might not know. It is used to allocate resources on the EVM to allow decentralized applications to execute themselves in a secure and decentralized way. That price is typically determined by demand and supply between miners who can decline a transaction if they do not like the price and users looking for processing power. Users make gas fees to compensate for the computing energy necessary to process and validate transactions on the Ethereum blockchain.

For most normal people, the blockchain is currently unusable for average size transaction. As of a short while back, sending ERC20 token cost more than US$60. You do not need to be a financial wizard to see that paying transaction fees that often surpass those of a traditional financial institution is not attractive. The need is evident; transactions need to be processed faster and cheaper for mainstream users. This is the problem Levinswap is trying to fix.

Levinswap: xDai based trading protocol

Levinswap is built on xDai, which means users do not have to deal with high gas fees per transaction. The xDai chain is a stable blockchain meant to make it easy to run cheap transactions fast. It uses a dual-token model that makes xDai stable as a token. The Levinswap network also simplifies conversion by letting users exchange xDai tokens for ERC20 tokens, after which you can get liquidity through farming pools and earn different rewards. It is one of the first networks to provide automated liquidity provisioning on the xDai blockchain. The platform claims the ability to process up to 20 transactions every second while Ethereum runs only seven. If it keeps to its promises, the platform has the potential to scale upward because the need for its service is great. On Levinswap, you can sell your assets instantly at the market rate. The token price, though, fluctuates based on supply and demand and the total market liquidity. The platform also provides a token list feature that means you are saved a lot of time on research.

Levinswap users get upgraded rewards whenever they trade or participate in the network at different levels. So far, developers have done many airdrops to the community. On the platform, anyone can provide liquidity to any pool they wish. To be ready to trade, you connect your wallet to the platform. You must have equal parts of two tokens to provide liquidity. The process is simple; you click on the ‘‘pool’’ button, add liquidity and pick the token you are working with. This triggers a dialogue box to enter the amount you wish to provide and confirm your transaction. All transactions have to be approved before you confirm.

There is a 0.30% fee to swap tokens for liquidity providers split between the liquidity provider fee and the protocol fee. You receive fees proportional to your contribution to the reserves, and those fees are deposited there, which increases their value. It works as a payout to all liquidity providers, also allocated proportionally to your share. Liquidity providers may also be subjected to impermanent loss as they offer liquidity so that you gain profit only when your collected fees are higher than the impermanent loss.

The Levinswap explains the rationale behind its protocol fee for liquidity providers. Other projects like Uniswap had a token launch when they were beginning, which means that they do not need to have a protocol fee to get funding. Levinswap gets part of its funding from this fee since it is a relatively new project with a small team behind it. With the protocol fee, the team can get the necessary resources to grow the ecosystem and focus on its future. Yet, it might benefit from issuing a token. Earlier on, the team announced that if it issues a token, a large percentage of its supply would be in the community – 80%. Only 20% of the tokens go to the team. The token will have a hard cap of five million Levin.

Liquidity farming

One of the products the team hopes to bring in is liquidity farming that will allow liquidity providers to stake their tokens to the Farms in exchange for the Levin token to encourage liquidity. Farming pools will allow users to get a regular and passive income by participating in liquidity provisioning. Developers also get an edge with this platform. Levinswap is a Uniswap fork on xDai. The platform has provided contracts and a way to deploy the front-end at the website or access the source code. There is not much need for technical know-how.

Final words

As the high Gas prices for Ethereum do not seem to have a clear-cut end in sight, platforms like Levinswap are becoming more attractive to the ordinary person. The choice to launch the network on the xDai chain and the features included in the protocol make Levinswap a good choice for anyone who is no longer willing to part with a lot of money in fees to use their DEX. There is an excellent basis to expect the platform to receive mass adoption in the days to come.

Add Comment

Click here to post a comment