Introducing FX Swap
You want to exchange your stable coin to another token, but you do not want to use the centralized exchanges. There are a few DEX options, but you need a simple DEX that will allow you to do the trade economically. This condition is very familiar to all the Web3 users around the world and has encouraged builders to find a solution to this problem.
At Function X, we are building an infrastructure that can handle a lot of transactions without sacrificing speed or security and at reasonable gas fees. It is designed to handle high transaction volumes for retail payments (PundiXChain), perpetual trading (MarginX), and other dApps. From the infrastructure side, Function X is ready and now, we need a simple DEX to solve this problem.
FX Swap is the name of the solution.
What is FX Swap?
FX Swap is the first Automated Market Maker (AMM) DEX built on Function X. It is a fully decentralized trading platform where users can easily swap their tokens on-chain. DEXes are one of the most fundamental protocols in DeFi and all EVM chains have been relying on them heavily. For example, Uniswap has become the go-to AMM for Ethereum, where PancakeSwap is the DEX for the BNB Chain. Both DEXes helped bootstrap liquidity for many other projects in their ecosystem and we expect FX Swap to do the same for Function X.
All the swap transactions are powered by the liquidity pools provided by other users, and by providing the liquidity, the provider can earn from the transaction fees (0.3% per transaction). All the transactions in FX Swap require $FX token as the gas fee.
There is no registration needed, users just need to connect their wallet and start their journey on FX Swap.
We will provide a short tutorial here to help you to start your first trade and provide liquidity. In a later section of this article, we will provide more details regarding the upcoming liquidity farms.
How to use FX Swap?
1. Connect your wallet.
First, you are required to connect your wallet. There are options to use Metamask or WalletConnect. For simplicity, we will use Metamask in this article.
Once it’s connected, you will be requested to change your network to FX Chain. This step will change your connected network to the f(x)Core Mainnet. If you want to add the network manually, you can visit Chainlist website, search for FX Network, and add it to your wallet.
2. Choose the token to swap.
There are a few tokens live on Function X Blockchain (deployed from proposal #13-#16, #21-#22, #24-#26). More tokens will be deployed to the f(x)Core Mainnet. In this example, we will swap from USDT to FX.
You need to choose the tokens, ‘USDT’ to ‘FX’, and fill in the amount.
Confirm the transactions on your wallet, and check starscan.io for the transaction records.
3. Providing liquidity
You can choose to provide liquidity and earn 0.3% from the trading transactions.
The Upcoming Farm Incentives Proposal
Based on the latest forum thread posted to discuss the farming incentives, the new proposal has been submitted. This proposal is asking for 5,000,000 $FX token to be distributed to incentivize the farms in FXSwap and may last for a year.
The objective of this liquidity incentive pool is to attract more users and LP providers to provide LP for trading on FXSwap. On the selected farms, all the LP providers will receive the incentives on top of the 0.3% trading fee.
As an example, Bob provided liquidity on the FX-PUNDIX pool on FXSwap and deposited the LP to the farm. His LP value is 10% of all the FX-PUNDIX liquidity on FXSwap. Because of this, he will receive 0.03% of all the transaction fees (10% of the 0.3% transaction fees) and 10% of the allocated incentives, as long as he keeps the LP in the farm. This calculation is dynamic based on the ratio of a user’s provided liquidity compared to the total liquidity.
Three farms are available at this time: FX-USDT, FX-PUNDIX, and FX-PURSE. In the near future, FX Swap will add more farms and the incentives will be distributed to those farms as well.
More incentives will be requested if they are needed in the future. All the details of the fund utilization will be published to the public to maintain the transparency of the team.
We hope this article can help you to understand more about FX Swap and encourage you to start to use it. Thank you for reading the October Hash Out and we look forward to sharing more exciting updates and progress. If you have any questions or concerns regarding the Function X blockchain, you can always reach our support team on the Starscan Forum.
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