Up with a new mobility solution, how the full chain DEX COSOSWAP plays out
With the rise of high-performance public chains such as BSC and Solana, the crypto industry staged a wonderful public chain war last year. Behind the new public chains "taking over the mountain", the industry's perception of the future public chain landscape is also gradually changing. In addition to the gradual growth of the early "cross-chain duo" Polkdot and Cosmos, BNB chain has recently launched a side chain BAS, Avalanche has directly launched a $290 million subnet incentive campaign, and Ether has changed its upgrade roadmap due to the rapid development of Layer2 technology. All these signs indicate that the crypto industry will probably enter an era of multi-chain coexistence in the future.
For example, DeFi players with small amount of capital often need to transfer assets between different chains to participate in liquidity mining with high yield, which is tedious and increases the risk of losing assets (such as transferring wrong addresses). Seeing the future trend of coexistence of 10,000 chains and the pain points of asset transfer and exchange between different ecologies, many DEXs started to develop towards supporting fast circulation and trading of assets between different ecologies, and COSOSWAP is such a full-chain DEX that tries to enhance the cross-chain experience of users.
How important aggregators are today
The DEX market is growing in size at a phenomenal rate, with its total volume reaching $128.6 billion in January 2022, a 1.4x increase compared to the same period last year; compared to just $600 million in January 2020, history moves forward in leaps and bounds. Approximately 20% of monthly on-chain transaction volume is generated through DEX aggregators, and there is a clear trend of growth. The reason this number needs more attention is, on the one hand, because aggregators in general represent non-robot volume (over 70% of aggregator volume is generated by non-robot traders). On the other hand, it is because bot volume represents about 50% of the total volume traded on the chain, which means that almost 1/3 of the volume generated by the average trader is routed through DEX aggregators.
Why the market needs a one-stop DEX
The reason for this is directly related to the transition from web 2.0 to web 3.0. One thing that is common to both Web 2.0 and Web 3.0 is the user demand for products and tools that increase convenience and reduce search costs. Amazon, for example, has built an empire by creating a convenient experience for customers to purchase goods and services online, optimizing costs and delivery times while creating a global marketplace that benefits both buyers and sellers. While lower barriers to entry and increased competition come at the expense of traditional business models, it is good for the macro economy because it increases the productivity and purchasing power of retail customers. In a parallel world where applications like Amazon do not exist, customers who want to buy a specific product online will have to browse different stores, interact with multiple front ends, and spend a lot of time comparing prices and quality offered by different suppliers, among other things. For these kinds of reasons, customers prefer to interact with Amazon rather than individual stores, and similarly Web 3.0 users prefer to interact with aggregators rather than individual smart contracts. The more complex the variety of products in the chain, the greater the user demand for the aggregator layer.
Create a chain-wide DEX to realize free circulation of assets
According to the data from Defi Llama website, as of April 19, the EVM system held 6 of the top 10 public chains in TVL ranking, accounting for 60%, among which the TVL of Ether accounts for about 54.9% of the TVL of the whole public chain. Among the top 10, there are 2 Cosmos chains, namely Terra and Cronos, of which Terra's TVL ranks second, accounting for 12.6% of the TVL of the whole public chain, and according to the data of Map of zones website, there are 43 application chains of Cosmos ecological integrated IBC, which has taken shape. COSOSWAP is based on the two highest weighted factions mentioned above, and takes the lead in solving the problem of asset liquidity fragmentation between Ether and BSC ecologies, and currently supports other chains as well. It will later be extended to other EVM compatible chains, such as Fantom, Metis, etc., and finally will integrate other non-EVM compatible chains, such as Bitcoin, Polkadot, etc., to achieve true full chain compatibility. Prior to COSOSWAP, users had to open multiple websites such as Dextools, Etherscan, Dune Analytics, Nansen, Coingecko, etc. to get different information to assist them in their trading decisions. COSOSWAP provides users with a comprehensive display of information and an efficient experience in a single page, eliminating the need to cumbersomely open numerous websites and helping users save time and effort. This creates a sticky trading environment.
COSOSWAPDAO is coming soon and users who have COSONFT are eligible to cast NFT for free, which is the ticket to participate in the early governance of COSOSWAP DAO. At the same time this will help COSOSWAP complete the cold start of the DAO and all users with Gold cards will be able to participate in the early governance of the COSOSWAP protocol, including: timing of the release of the protocol's native assets, early reward distribution, etc. With the issuance of native assets and the launch of COSOSWAPDAO, a strong community will be born that will help COSOSWAP to capture, circulate and feed back the value of the protocol, and a higher dimensional one-stop application is rising up.
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