This article is written in partnership with CoinEx (learn more)
OneSwap, a DEX with an order book The roles of ONES, the token of OneSwap What are the costs of OneSwap? Our opinion on the DEX OneSwap
OneSwap, a DEX with an order book
OneSwap is a decentralized multi-chain platform allowing the exchange of tokens. Specifically, OneSwap is an Automated Market Maker (AMM), based on CoinEx Smart Chain (CSC), while supporting Ethereum (ETH), Tron (TRX) and Binance Smart Chain (BSC).
This protocol is the work of the team behind CoinEx, a cryptocurrency exchange platform, recently available in French, which has also developed the CoinEx Smart Chain, a blockchain compatible with the Ethereum Virtual Machine and dedicated to the creation of decentralized applications. Thus, OneSwap is one of the first CCS applications to emerge.
OneSwap sets itself apart from other decentralized exchange protocols (DEX) and introduces an on-chain order book model. This feature offers OneSwap users the convenience of using a centralized platform. Indeed, users can place orders there at a defined price, unlike other DEXs which do not offer this option, which is essential for many.
Like any good self-respecting DEX, OneSwap allows its users to create liquidity pools for all of the tokens listed on the networks supported by the protocol. Thus, by providing liquidity on OneSwap, it is possible to generate passive interest with the tokens available.
If you are interested in providing liquidity to the protocol, beware of impermanent loss, a temporary loss of funds that occurs when the gap between token prices becomes too large.
With a very clean and intuitive interface, it is relatively easy to learn about this platform and to trade tokens. In addition, this protocol works in conjunction with its wallet, the OneSwap Wallet.
As the latter is also decentralized, you are the sole owner of your private keys, and therefore of your funds. It should be clarified that this wallet only supports CET and CRC-20 tokens, the CoinEx Smart Chain token standard.
In addition, the CET being the native token of the CoinEx platform, it is relatively well represented on OneSwap. Numerous liquidity pools are dedicated to it and holders of CET tokens can easily grow their funds.
If, however, you prefer to use other solutions, OneSwap also supports the popular MetaMask wallet. To use it with the CoinEx Smart Chain, you will first need to set up the extension by manually adding a new network via the “Custom RPC” button. Then all you have to do is enter the following data:
Once your OneSwap wallet is created or your MetaMask is connected, you will be able to interact with the protocol and all the blockchains it supports. Here, the token swap is very simple and is done in a few clicks from the “Swap” tab:
Illustration of a swap from USDT to ONES
More interesting, and what makes OneSwap special, you can go to the “Trade” tab and trade as if it were a centralized platform, such as CoinEx. From this page, you can also carry out token swaps, but above all place limit orders, which will be added to the order book and will be triggered according to the price evolution of the selected pair.
For example, on the screenshot below, I have 1000 USDT and want to get 1000 ONES for priced at 0.95 USDT. Like a classic platform, I just need to click on the “Buy ONES” button and my order will be executed if the price hits 0.95 USDT. Automatically, the smart contract will then draw from the liquidity of the ONES / USDT pair and will return the ONES tokens to me:
Illustration of a limit order on OneSwap
👉 To learn more about how OneSwap works, you can check their FAQs
The roles of ONES, the OneSwap token
To facilitate its on-chain governance, the OneSwap protocol has its own CRC-20 token, the ONES. OneSwap users can, with ONES, initiate governance proposals and vote for those of other token holders.
Only those who have a sufficient number of ONES (more than 1% of the total tokens) can submit proposals, and any user with ONES can vote for or against a proposal. Voting lasts 3 days, and one token equals one vote.
Once the voting period has elapsed, the proposals which receive more positive than negative votes are adopted.
Trading pairs participating in liquidity mining operations produce a fixed number of ONES every day. OneSwap rewards users who provide liquidity for these pairs with ONES tokens.
At the time of writing, the annualized interest rates offered to liquidity providers on the ONES / USDT and ONES / CET pairs are around 90%.
Burning ONES tokens
The ONES tokens incorporate a deflationary mechanism. This means that part of the fees collected by the platform are intended to redeem and burn ONES tokens. In the long term, this method helps reduce the number of ONES tokens in circulation, and could help the token’s price to be maintained.
All the information relating to the number of ONES in circulation, but also to redemptions and burnings, is available on this page.
What are the charges for OneSwap?
Regarding platform usage fees, OneSwap takes 0.5% fees from taker-type orders (an order executed immediately) based on the trade amount, while maker-type orders do not pay. of charges.
The transaction costs generated by a swap are divided into two parts:
60% of fees are paid directly to liquidity providers; 40% are intended for the redemption and burning of ONES tokens.
Our opinion on the DEX OneSwap
The integration of limit orders allows OneSwap to perform well, in addition to being at the heart of the CoinEx ecosystem and its blockchain. The infrastructure and operation of OneSwap is particularly attractive for those who wish to generate passive income with their assets.
Multi-channel, with its own wallet and giving many advantages to holders of its ONES token, OneSwap meets many criteria to satisfy devotees of decentralized finance (DeFi).
However, it is necessary to clarify that at the time of writing these lines, the liquidity of some pairs is rather low, and if a trade is made on one of these pairs, the user could suffer a consequent slippage effect. If you want to use OneSwap, make sure beforehand that there is sufficient liquidity, and that your order will have a minor impact on the price of the desired asset.
As has already happened in the past, OneSwap will therefore have to attract liquidity providers by setting up incentive programs, in particular through airdrops of ONES tokens distributed to the most involved users. This mechanism is essential for OneSwap has sufficient liquidity for the majority of its pairs.
👉 To go further, find our review and tutorial on the CoinEx platform
Receive a recap of crypto news every Sunday 👌 And that’s it.
What to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliate. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and invest only within the limits of their financial capacity. This article does not constitute investment advice.
This is a sponsored and paid article. Cryptoast has made preliminary research on the products or services presented on this page but could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service put forward in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and invest only within the limits of their financial capacity. This article does not constitute investment advice.
About the author: Clément Wardzala
Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have endeavored to share qualitative content so that the sector is democratized among everyone.
All articles by Clément Wardzala.