What Is TUBE2(TUBE2)?
TUBE2 belongs to a token exchange protocol built on Smart Contracts, also known as decentralized finance (DeFi). The biggest feature of the decentralized trading platform is the elimination for the participation of third parties in blockchain finance through the usage of Smart Contracts to achieve financial decentralization. Unlike a centralized trading platform in the form of an order book, there is no order book in ESwap.
The exchange rates of tokens are determined by POOL, which means that price fluctuations are determined based on user transaction volume, thus improving fairness and price efficiency. As ESwap is a decentralized trading platform built on Ethereum smart contracts, most cryptocurrency wallets applicable to the Ethereum chain may be linked to and used by ESwap, including MetaMask, imToken, Trust Wallet, Huobi Wallets, and so on.
TUBE2 Storage Key Points
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
As TUBE2 is a decentralized trading platform built on Ethereum smart contracts, most cryptocurrency wallets applicable to the Ethereum chain may be linked to and used by ESwap, including Meta-mask, token, Trust Wallet, Huobi Wallets, and so on. The biggest feature of the decentralized trading platform is the elimination for the participation of third parties and order book in blockchain finance through the usage of Smart Contracts to achieve financial decentralization and matching of order.
Unlike a centralized trading platform in the form of an order book, there is no order book in ESwap. The exchange rates of tokens are determined by POOL, which means that price fluctuations are determined based on user transaction volume.
How It Works
TUBE2 Transactions in general trading platforms and traditional stock markets are conducted via order books, which means that buyers and sellers define their orders separately. Buyers typically want to buy at the lowest price, whilst sellers aim to sell at the highest price. In such situations, both parties may not reach a consensus, rendering transactions incomplete. During such a time, a Market-Maker must appear to facilitate transactions where it will accept buy and sell orders to generate liquidity, thus allowing users to trade without the other party’s appearance.
In ESwap, every user may become a Market-Maker or Liquidity Provider (LP) to provide liquidity for ESwap. The LP possess the simple role of creating ETH-stable-coin trading pairs to increase the pair’s reserves. With more ETH reserves, the trading price of stable-coins are more balanced, and paired tokens possess higher liquidity.
ESwap Operation Mode
TUBE2 is an automatic Market-Making protocol supported by a Constant Product formula and runs on a non-up-gradable Smart Contract system on the Ethereum blockchain. ESwap eliminates the need for intermediaries, therefore achieving decentralization, censorship resistance and security. The automatic Market-Making agreement is like a store with basic functions. In ESwap, the Liquidity Provider plays both the roles recycler and a seller roles. ESwap can provide exchange services for any two ERC20 tokens, but Liquidity Providers are required for this.
Anyone can become a Liquidity Provider. Deposit tokens of equal proportions into both sides and receive reward, often referred to as an LP. TUBE2 The amount of LP may be exchanged proportionally according to the amount of assets in the current reserve, which guarantees that the proportion of your deposit will be equal before any transactions are performed. The exchange basis of ESwap is entirely derived from liquidity added by Liquidity Providers. When there are no tokens in the reserve, users may add liquidity in any proportion and the first Liquidity Provider shall be the provider who sets the initial price of the mining pool.
Unexpectedly, a proportionate risk of loss shall also be assumed. For example, if the first Liquidity Provider deposits tokens into the trading pair at a rate different from the current market exchange rate, it immediately creates profitable arbitrage opportunities for other users to easily take advantage of, thus bringing exchange rates back to market prices. This rule shall always apply, therefore, all Liquidity Providers are incentive to deposit tokens proportionate to market exchange rates.
Automated Market-Maker Algorithm
TUBE2 price curve principle of ESwap is simple, X * Y = K, where “X” and “Y” are two types of capital reserves. For example, when you create a reserve token trading pair of Ethereum and USDT at a 100:100 ratio, then its Constant Product is 10,000 and this will not change before new liquidity is added. Therefore, if you use 50 Ethereum to exchange for USDT, the assets received are 150 Ethereum * (100-X) USDT = 10,000, where “X” is the asset received, which is 33.33 USDT. In this instance, an obvious large slippage has occurred, and the only way to reduce this slippage is for more participants to provide liquidity support. If bilateral reserves at this time are 10,000 Ethereum: 10,000 USDT, then the product, “K”, is 100,000,000.
The TUBE2 ecosystem is mainly comprised of three types of users: Liquidity Providers, Traders and Developers. Liquidity providers are incentive to contribute tokens to the ordinary liquidity pool. Traders may exchange these tokens for a fixed fee of 0.40% (Liquidity Provider’s profit). Developers can jointly develop E Swap and usher in an exciting future for ESwap by improving user experiences, transaction processes, etc.