With the popularity of several altcoin projects that became mainstream, there has been a rise in altcoin trading. Crypto investors and traders alike needed to swap their bitcoins, stable coins, and altcoins, one for another.
Several exchanges exist that provide the needed platforms where this swapping takes place.
Token swap means swapping one token to another. It might seem an easy one, but the processes involved being not so simple, require a few things. The old conventional way was to find an exchange and swap your altcoin to Fiat or stable coins and then swap to the new desired altcoin. This process was time-consuming and required a double payment of gas and network fees for the two swaps that will happen for the transaction to be successful.
Technologies have emerged that made this process consume less time and money. Now, you can swap your altcoins for a new one with just the click of a button.
For a swap to go successfully, DEX and CEX platforms like Uniswap(V2), Binance, Huobi, Pancakeswap, DyDx, Coinbase, Sushiswap, or a custodian wallet, must have the pairs that the user needs to swap and provide liquidity for the transaction.
That is not always the case. Problems are usually encountered in this scenario. These exchanges charge high transaction fees which are often higher than the announced fees, delays are caused due to high coin demands that are badly managed and many altcoin options are not available.
But most of all,
All these exchanges are all alike in one function: they only offer one-to-one coin swapping, that is, you can only swap coinA for coinC. Nothing more, nothing less. Traders who would need a higher percentage of coinC and are willing to concurrently swap another coin, say coinB to get more coinC are left with no option but to continuously keep swapping CoinA to get CoinC thereby incurring more fees than arranged for.
All these and more have become a bugging issue to most crypto investors and traders who need a trustless platform, lesser fees, quicker transactions, and a platform that will allow the swapping of two coins to get a higher yield of one. Concurrently swapping your Cardano and Ripple’s XRP to get more BTC, imagine the possibilities that this would unlock.
What does the future hold, is there a way out?
With unique technology, we can finally see light at the end of this tunnel and we are hoping to change the way people think of token swap.
