Foreword:
In 2020, while the pandemic of COVID-19 swept across the globe, resulting in a great impact on all aspects of the world, DeFi (Decentralized Finance) in the blockchain world ignited the project development and application, popularity and traffic, as well as capital fever of the whole blockchain market. The fiery DeFi has become an earth-shaking event in the blockchain world.
As the new favorite of blockchain development, DeFi includes decentralized lending, decentralized exchange (DEX), insurance, stablecoin, assets, derivatives, Oracle Machine, aggregators and other major areas, which are all growing rapidly. Up to now, in Ethereum and Heco, the total market value of DeFi is close to 100 billion US dollars, and the total locked positions of DeFi have reached 47 billion US dollars (increased by 47 times compared to last year). The Ethereum chain has successfully incubated a number of industry leaders, including Chainlink (LINK), the leading Oracle Machine with a market value of $11 billion, UniSwap (UNI), the leading decentralized exchange with a market value of $8 billion, Aave (AAVE), the decentralized lending leader with a market value of $4.7 billion, SushiSwap (SUSHI), the second largest decentralized exchange with a market value of $2.7 billion, Synthetix (SNX), the leader in Synthetic assets protocol with a market value of $2.3 billion, and UMA (UMA), the leader in derivative protocol with a market value of $1.1 billion. In the Huobi ECO Chain (Heco), Mdex (MDX) was born as a DEX newcomer with a market value of $400 million.
Since governments have started to attach importance to and actively accept blockchain technology, it is believed that DeFi, as a major direction of blockchain development in the future, will be the most applicable and well-timed financial area in 2021. In April 2020, Libra, a stablecoin established by Facebook, released a white paper version 2.0, aiming to build Libra payment system. In March 2021, Aon, the world's second largest insurance institution, started to provide distributed insurance services with Nayms as a pilot project. DeFi’s impact is rapidly spreading from the blockchain world to the traditional financial and Internet technology fields, and the “hot wave" of DeFi is coming towards us. YouSwap, born in early 2021, is a shining star in the field of DeFi. Rising from the tides and taking advantage of the momentum, the journey of DeFi in 2021 is bound to be exciting.
YouSwap - Originating from Singapore and Committed to a Truly Decentralized Financial Ecology
YouSwap is an All-Eco DEX project created by the blockchain geek team based in Singapore. It realizes multi-chain sharing of digital assets by constructing a multi-chain ecological deployment system. It provides the project owner with one-click ICO technical support as well as fund-raising and coin listing service. It improves AMM (Automated Market Maker) model and provides liquidity with high security. In terms of finding the best trading routes for users, YouSwap provides multi-chain and cross-chain aggregation trade function. In terms of ecology improvement, YouSwap has developed loan service function, which can satisfy investors' loan demand and realize double benefits of investment and wealth management. YouSwap also provides derivative service, which is mainly suitable for digital asset managers to hedge risks. YouSwap provides stablecoin exchange and transfer service, which lowers the threshold for general public to enter blockchain. All these technical services can be applied on Ethereum Layer2.
Blockchain has the characteristics of anonymity, decentralization, security, traceability, and non-tamperability of the data on the chain. However, in order to improve the system performance, compete for user traffic and facilitate operation and management, most exchange platforms adopt a centralized exchange system architecture. However, for centralized asset custody, escape with money, hacker attack on exchange and other accidents occur occasionally. The potential risk of centralization cannot be erased, only we don’t know when it will happen. In addition, judging from the overall development of DEX ecology, the technical performance, business, product and operation mode need to be improved. There are two major aspects in the development vision of YouSwap. First, YouSwap engages in the field of DeFi, with the aim of making a P2P decentralized exchange platform instead of a centralized exchange full of trust crisis. Second, on the premise of adhering to the first aspect, YouSwap is also a complete solution of All-Eco DEX, which is a truly one-stop decentralized digital asset service platform pursuing the true blockchain. YOU series represent the value brand of YouSwap platform. YOU has the cultural connotation of “Only YOU" and "Owned By You". The functional services of YOU series will run through the whole ecosystem of YouSwap, such as the convenient service of YouStarter ICO and coin listing, as well as the expansion of fund-raising channels, the zero-risk market-making cost, the real-time high-speed exchange and the low fee guarantee, so as to realize the demand of free cross-chain circulation of assets among various public chains. YouDerivatives provides decentralized hedging channels for financial risks, YouTreasury provides open financial services, YouPay provides stablecoin transfer and exchange services, and YouNFTs (real estate, art collections, etc.) provides investment management portal in NFT chain, etc.
DEX Rising Star of DeFi Community in 2021 with Multiple Competitive Advantages
Multi-chain Deployment
YouSwap supports the deployment of multi-chain architecture (currently supports mainstream DeFi public chains such as ETH/TRON/BSC/HECO), and the protocol is completely open source. The system construction of YouSwap V1 version will take the lead in docking on the two public chains of Ethereum network and TRON main network (the deployment of YouSwap in BSC and Heco will be launched in V2 version due to the development period). YouSwap also accessed mainstream wallets such as MetaMask and DApp browsers in a short time, thus providing users with safe and convenient decentralized transaction services. YouSwap opened up the ecology of various public chains and brought the traffic in the prosperous ecology of various public chains to YouSwap. YouSwap has its own independent ledger data (i.e., block data) in each chain, and transactions in different chains are executed in parallel without affecting each other.
Optimized AMM (Automated Market Maker) Model
The AMM (Automated Market Maker) mechanism adopts a DEX protocol of X0 ∗Y0 = C0 "fixed product". For example, users can create a fund pool by providing a certain proportion of ETH and any ERC20 assets, and each fund pool stores a certain proportion of different assets and provides liquidity for the exchange of these assets. As asset pricing and price discovery related to fund pool reserve under AMM mechanism are completed on the chain, the liquidity pool cannot sense the external market price. When the external price of CEX fluctuates, there will be spread to trigger arbitrage. In this process, the arbitrage portion is actually the value that has disappeared from the platform, and this arbitrage spread is the main source of impermanent loss. In order to optimize the market-making effect and reduce the risk of impermanent loss, YouSwap introduces the mechanism of price feeding by Chainlink Oracle Machine to guarantee the price of currency pair in liquidity pool. For example, Chainlink will transmit YOU price to the blockchain through YOU/ETH to ensure the consistency the prices between on-chain and off-chain.
Multi-chain and Cross-chain Aggregation Trade Function
At present, YouSwap's aggregation trade technology integrates all kinds of DEX liquidity and pricing with DEX service providers in four public chains, compares the optimal prices in different exchange protocol, and provides users with optimal trading and minimum slippage. For example, when a user enters a trade, YouSwap first finds a DEX platform with this currency in multiple chains: Ethereum, TRON, BSC and Heco. When the user submits the exchange, YouSwap backstage may split the order into multiple orders according to the optimal trade matching degree. For instance, 70% of them are completed on Sushiswap, and the remaining 30% are completed on Balancer. Moreover, when the aggregator finds that the trading pair selected by the user has insufficient liquidity in most DEX, it is also possible to complete the trade through trade bridging.
Smart Liquidity Mining System
Customization of Liquidity Pool. The liquidity pool has a public pool and a smart pool. All the parameters of the public pool (such as token weight) have been set when the liquidity pool was created, allowing anyone to provide liquidity to the pool, such as DEFI project and Polkadot ecological project. The YouSwap smart pool is controlled by smart contracts, allowing the controller to respond to real-time data on the blockchain, and can customize the currency, proportion and exchange fee rate of the working capital pool; Second, automatic mining with fluidity. YouSwap is a smart automation platform free of custody for DeFi applications, on which the liquidity parameters of deletion, addition, sale and withdrawal can be set in advance. When the price is triggered, the trade will be executed automatically. For example, when the value of LPtoken drops to a certain value, it will withdraw from the fund pool.
Layer2 Scalability Technique
YouSwap's multi-chain system is deployed on the public chain with rich assets and project protocols. In the public chain ecology, Ethereum blockchain network is the most prosperous. At present, Ethereum network can only handle about 13 trades per second, and a large number of DApp on Ethereum operate with frequent network congestion, thus generating a trading fee of $80-90 per trade. Considering the problem of insufficient performance and high Gas fee in Ethereum network at present, YouSwap firstly adopts the technical development of expansion scheme ZK Rollup in V1.0, that is, all trading data interacting with Layer1 are put on chain, the trading data of Layer2 are put off chain, and the Hash data of trades are also put on chain. The validity of state transition is guaranteed based on the continuously generated zero-knowledge proof, so that it’s possible to complete the verification of multiple blocks on the chain. With the support of high-performance computing resources, the generation time of proof is greatly shortened, the throughput of the system is significantly improved, and the average trading cost is greatly reduced. This high-performance expansion can realize instant exchange and low Gas cost. The YouSwap team will also build an expansion scheme that supports universal EVM, so that other applications can be migrated quickly without rewriting the smart contract. In the planned V3.0, YouSwap will be compatible with Optimistic Rollup and Validum in terms of expansion scheme, so as to realize the interoperable application of Layer2 solution in Ethereum.
Application of Multi-chain and Cross-chain Interoperability
Another highlight of YouSwap platform is cross-chain. There are two important prerequisites for the development and growth of various DeFi protocols, the first is the improvement of technical performance, and the second is the matching of cross-chain demand of assets. With the slot auction of Polkadot Parachain, YouSwap team believes that the prosperity of Polkadot ecology cannot be underestimated in the future blockchain encryption world, and YouSwap team will explore the Parachain and Relaychain of Polkadot to solve the expansibility and scalability issues. The YouSwap platform will first support four kinds of blockchain cross-chain protocols including Ethereum, TRON, BSC and Heco, and will also gradually access Bitcoin and support the cross-chain of Polkadot Ecology, so as to help users of YouSwap participate in multiple public chain ecosystems with one click and trade token assets on different public chains.
Four-fold mining mode
YouSwap adopts the mechanism of LP liquidity mining, single-currency staking mining, trade mining and invitation mining. On YouSwap platform, all users have the opportunity to participate in the above mining activities. Users can obtain mining rewards by providing liquidity LP to the liquidity pool, and they can also obtain mining rewards by generating trades on YouSwap platform. The mining rules of hashrate invitation are as follows: the user of YouSwap platform can become a inviter by activating the role of miner through the invitation link, and then invite other users to participate in liquidity mining. Only two levels of invitation relation can be generated with two invitation modes: (1) Hashrate sharing: The inviter sends the link to friends (invitees) who will pay the miner's fee to activate the invitation relation and enjoy a 5% bonus. (2) Miner activation: The inviter pays the miner's fee to activate friends (invitees), and get a 15% hashrate benefit from first-level friends and another 15% hashrate benefit from second-level friends. The inviter’s friends will also enjoy a 5% bonus.
The inviter and invitee who activate the invitation relation in the above two modes can get the corresponding invitation reward when the invitee pledges to mine. In the liquidity mining pool, the higher the hashrate of LP is, the higher the mining output is.
After YouSwap main network goes on line, the liquidity mining activity will be initiated. The first batch of dual-currency trading pairs such as YOU/USDT, YOU/ETH, ETH/USDT, WBTC/USDT, LINK/USDT and DOT/USDT will be launched. The single-currency YOU, WBTC, LINK, DOT and ETH will support liquidity mining. In the later V2.0, YouSwap team will also develop the online trade mining pool.
Diverse "YOU series" Ecological Function Services
The All-Eco application of YouSwap is mainly manifested in the functional services of YOU series. For example, in the function of YouStarter, a series of ready-made smart contracts have been created for non-tech founders to realize the convenient service of ICO. In the expansion of fund-raising channels, IDO (initial DEX offering) is provided to quickly help the high-quality innovative projects to raise funds in early stage. These projects will launch their trading pairs on the YouSwap platform in the future, realizing one-stop auxiliary services for token creation, coin listing fund pool and subsequent development of projects. YouDerivatives is a decentralized derivatives service launched on V2.0, a hedging channel for decentralized financial risks. The main derivatives to be launched in the future include decentralized perpetual contracts and decentralized option products. YouTreasury is an open financial service system, which mainly derives leverage transactions, leverage liquidity mining, aggregated lending services, wealth management services, and aggregated wealth management services bridging YFI's revenue based on the loan development function. YouPay is developed based on the user group's need to exchange and transfer of stablecoin. The YouPay system is updated through the payment module, which supports the instant exchange between various stablecoins and fiat based on layer2, and can achieve instant transfer, greatly lowering the threshold for C-end users and traditional enterprises to access and accept cryptocurrency. YouNFTs can provide circulation creation and trading platform services for on-chain investment of real estate and art collections, and can also provide NFT-based product applications such as NFT mortgage loan, NFT mining, and NFT mortgage ICO.
High Performance and Security Enables Users to Regain the Control of Assets
Security of YouSwap
User asset security is the top priority in the design protocol of YouSwap platform. The updated iterative version of YouSwap is completely decentralized, which does not place user assets in custody. All assets are kept on chain, and users have complete control over personal assets. Even the protocol liquidity fund pool of smart contracts can guarantee that users can withdraw their own assets under any circumstances. If YouSwap exchange enables the On-Chain Data Availability (OCDA) function of governance protocol V1.0, it will provide YouSwap users with the same security level as the underlying multi-chain blockchain, which means that YouSwap platform can remain anonymous to a certain extent, for example, it does not provide any customer service and contact information. We believe that trustlessness guarantees more trust. In the field of crypto asset trade, trustlessness will become a new criterion to judge whether the trade is credible or not.
Outstanding Performance of YouSwap
Most decentralized exchanges will encounter performance bottlenecks in their underlying blockchain, that is, the throughput is too low and the cost is too high. Performance bottlenecks make these decentralized exchanges difficult to be welcomed by large-scale users. Many trading platforms have to choose between performance and security. Comparatively speaking, YouSwap adopts the Layer2 scheme of "zkRollup". The throughput of YouSwap will reach 16,400 trades per second staring from V1.0, and the settlement cost is as low as $0.0001 per trade. Layer2 instant transfer function is applied with zero Gas fee, which greatly improves the user's transfer experience. The throughput of uniswap platform is about 12 trades per second, and the throughput of 0x protocol is about 13 trades per second. In addition, the cross-chain of most decentralized exchanges is still in the mode of Wrapped Token. These exchanges fail to utilize the main cross-chain platform like Polkadot and Cosmos to realize the true decentralized cross-chain, which is contrary to the original intention of DeFi in blockchain. In contrast, YouSwap will explore and develop the underlying cross-chain technique of Polkadot, and the cross-chain interaction of initiative assets on different public chains can be realized in V3.0 protocol.
Regular Output Reduction and 100% Buy-back and Burning Facilitate YOU Value Capture and Create an Extremely Deflationary Economic Model
1、YOU Token Distribution
Total circulation: 200 million
Pie Chart of YOU Distribution
YOU mining planning:
Mining Reward Table
Fund-raising by early investors:
These investors will participate in early construction of YouSwap ecology, and this part of funds will be used for early operation planning and external safety audit. The target subscription amount is 10 million YOU, accounting for 5% of the total amount, and the subscription reference price is 0.10 USDT (ERC 20). The subscribed YOU will be distributed in real time and displayed in the user’s account. The unlocking and exchange will be consistent with the mining rhythm for the previous five years.
Initial DeFi Offering IDO:
IDO Table
For Ethereum public chain, YOU will be first launched on the official website of YouSwap in the form of IDO, and immediately released to the trading platform for providing initial liquidity (YOU-USDT, YOU-ETH) after settlement.
YOU buyback and burning:
- YouSwap platform will charge 0.3% of the trading volume as the fee, and the platform will use 100% of the total fee to buy back and burn YOU (until the total amount of burnt YOU is 100 million), and the bought back and burnt YOU will be transferred to the black hole address and never circulated;
- 100% of the fee for NFT product trading will be used for the buy-back and burning of YOU;
- Other burning scenarios, etc.;
2、YOU Value Scenario:
Governance token
YouSwap is a decentralized project led by the community, and YOU is the token of the community’s participation in governance:
- Users holding a certain number of YOU can initiate upgrade proposal, such as modifying the fee, the distribution of the liquidity mining fund pool, and the long-term incentive plan of YOU;
- All YOU holders can vote on the proposal, and the proposal with the majority consent will be passed, and the YouSwap development team will be responsible for its implementation;
YOU fee discount & interest deduction
YouSwap will charge 0.3% of the trading volume on the platform as the trading fee, and users holding YOU is entitled to the corresponding fee discount when trading on the YouSwap platform. Meanwhile, users holding YOU can deduct the interest of loan products on the YouSwap platform;
Coin listing by voting or mortgage
YouSwap supports a limited number currencies of liquidity fund pool. In addition to the currency of liquidity fund pool initially activated by the official team, users holding YOU may realize coin listing by voting or mortgage;
- The YOU holder initiates the coin listing proposal through the YouSwap community governance process, and if the majority of votes are secured, the coin listing will be executed;
- Users holding relatively more YOU may compete for coin listing by mortgaging YOU.
The official team of YouSwap will implement the coin listing according to the result of voting or pledge. All users can create a liquidity pool to provide liquidity after the coin listing is completed.
Mining seeds
In the protocol liquidity pool of YouSwap platform, users holding YOU can provide liquidity to obtain mining rewards by adding to YOU's fund pool, and users who trade the trading pairs containing YOU can also get mining rewards. In addition, users holding YOU can also participate in various incentive activities such as airdrop incentives and time-limited mining in the centralized exchange.
Unique products and services
On the YouSwap platform, users holding YOU can obtain smart liquidity mining system management, circulation construction of NFT in YouNFTs segment, as well as trading services. With the later iterative upgrade of YouSwap version, users will also get the firsthand experience of various customized product functions and many other rights and benefits.
YouSwap is Dedicated to a Truly Future-Oriented DeFi Ecology in Long-Range Planning
March, 2021
YouSwap V1 version was released at the creation stage:
- Main net was launched on Ethereum
- IDO function was available for YOU on YouStarter
- Liquidity pool and invitation for mining were available- YOU, a protocol governance token, was released
April, 2021
Columbus upgrade with a new version of YouSwap V1 released:
- Trading and mining functions are available
- Main net is launched on TRON, BSC, and Heco
- ICO function is available on YouStarter
- DAO community autonomy
May, 2021
Galileo upgrade with the version of YouSwap V2 released:
- Smart mining management system is available
- Cross-chain aggregation trade function is available
July, 2021
Darwin upgrade with the version of YouSwap V3 released:
YouTreasury, a financial development program, is launched
Get through the Layer 2 scalability of ZK Rollup
October, 2021
Faraday upgrade with the version of YouSwap V4 released:
NFT market segment is developed and launched
Other protocols of Layer 2 are interoperable during the development
YouDerivatives is available
January, 2022
Olympics upgrade with the version of YouSwap V5 released:
Polkadot underlay cross-chain technology is developed
YouPay, a stablecoin transfer service, is available
Synthetix protocol is bridged for brokerage