Do you know how the swap platform works? Simply put, a swap protocol like uniswap is an automated market creation protocol (AMM – Automated Market Maker).
This allows the user to exchange any ERC20 tokens, using a liquidity pool instead of an order book.
How does Uniswap work?
Uniswap is a 100% decentralized and permissionless protocol, operating on the following formula:
x * y = k
x is the number of tokens A.
y is the number of tokens B.
k is the total value of the set A / B.
When k changes, and the values of tokens A and B do not change, x and y will change.
When x and y change, but k doesn’t change, then the value of tokens A and B must change.
In order for k to change, x and y need to be changed by the liquidity provider (will later use the words “LP” or “Liquidity Provider”).
In order for x and y to change, the trader will take action via swap. Swaps on ethereum platform are different from trading on traditional platforms. Instead of using the order book to represent liquidity or determine prices, swap platform uses automated market creation to provide instant feedback on rates and slippage.
Each token pair on swap platform is supported by a liquidity pool. A liquidity pool is a smart contract that stores a balance of two unique tokens and enforces the rules around depositing and withdrawing these tokens.
After the tokens are stored (sold), the appropriate amount must be withdrawn to keep them constant (k in the formula in the previous section). Conversely, if the token is withdrawn (purchased), a suitable amount must also be deposited.
KingSwap is the newest decentralized finance (DeFi) liquidity pool platform that is a further and better evolution of UniSwap. In addition to offering off-ramp fiat currency converting solutions to allow users great convenience between the fiat and cryptocurrency worlds.
KingSwap has also added some new Blockchain community-oriented features to the Uniswap’s core design, which will help boom the technology and provide user-friendly real-time benefits in terms of price curves and contributor rewards. Our protocol design offers to align incentives for the users by introducing strategies like pool rewards & network effects.
One of the risks that users must avoid is that it is very easy for someone to register their token. As a result, many people take advantage of the convenience of registering for this scam, fake token. Users need to check the token’s smart contract carefully to avoid losing money.
KingSwap has devised strategies to ensure project sustainability and project security audit. A small portion of each King distribution will be set aside for potential future setbacks and implementation of governance proposals.
This project believe in the security of kingswap users and their assets, and its aim to work hard towards eliminating any potential threats and risks. Before kingswap launch, they have fixed all the bugs and security threats that were reported by Uniswap and other clones of it. They also have a set fund to pay all bills for security audits.
$KING are designed as rewards for a High Yield Staking LP Token Model aka “earning tributes” – these tokens are given as rewards for liquidity mining. The $KING then allows holders to participate in the ecosystem and earn other perks and benefits. $KING holders can use these tokens as a medium of exchange whereby goods and services can be purchased or exchanged for other currencies from LPs.
If you are an existing LP in UniSwap pools or just searching for a platform to invest in and earn “tributes” from, you should definitely consider KingSwap. We have designed the token distribution mechanics to make it extremely easy and adaptable for existing UniSwap LPs to migrate to our protocol. The journey to greener pastures need not be long and arduous.
Once LPs stake UniSwap or SushiSwap LPs into KingSwap liquidity pools, they will start earning tokens and rewards. The $KING per block allocated for LPs will be distributed equally among the LPs of the supported pool. $KING will also be distributed in LP “tribute” farming.
If you’re familiar with the SushiSwap and UniSwap protocols, one of the best features to look out for in KingSwap would be our Liquidity migration protocol. KingSwap being a fork of UniSwap, will migrate all the liquidity tokens staked onto KingSwap contracts once we reach 100,000 blocks.
During the migration, your Kings will be redeemed on UniSwap and new liquidity pools will be created on KingSwap from those tokens. The new pools will be similar to the redeemed ones, with additional “tributes” distributed to $KING holders.
Upon the successful completion of migration, your converted tokens will fuel the first sets of KingSwap liquidity pools, and you, as an LP, can sit back as you watch your rewards stream in.
For more information please visit :
- KingSwap Website: Kingswap.io
- Discord: https://discord.gg/eZu4Tv
- Telegram group: https://t.me/kingswap
- Twitter: https://twitter.com/defi_kingswap
- GitHub: https://github.com/KingLuigy/KingSwap
- Youtube: https://youtube.com/channel/UCAHiU9LLE3cDauSfTWIB97Q
- Reddit: https://www.reddit.com/user/Defi_KingSwap
- Instagram: https://www.instagram.com/defi_kingswap
Knight Lancelot is here to slay! ⚔️#NFT collectors will enjoy basic tier rewards (10% of allocations) from airdrops.
Early adopters & loyal supporters of the KingSwap kingdom can reap rewards with exclusive & time-limited NFTs.
— King Swap (@Defi_KingSwap) October 8, 2020