Levinswap – the new fast & inexpensive automated market-making DEX built on xDai chain is causing quite a stir.
Within just three weeks, Levinswap, the new decentralized trading protocol, was only launched recently, but already is quickly approaching an astonishing 1 million in liquidity.
Liquidity mining, also known as yield farming, has been brought to the fore by DeFi over the last 18 months. Although IDEX, introduced liquidity mining for the first time in October 2017, the last 18 months have seen liquidity soar in terms of popularity and volumes.
Put simply, it is the method of providing liquidity via cryptocurrencies to decentralized exchanges (DEXs). As exchanges have to be liquid, DEXs will reward users that bring their capital to the platform.
The majority of DEXs are decentralized by substituting order books with an Automatic Market Maker (AMM). These AMM’s are smart contracts that regulate trading. With smart contracts being decentralized, users are not required to trade an exchange order book. Instead, users are effectively trading with other users.
Token swapping is available on the exchanges. These make it possible to trade, for a fee, one token for another within a liquidity pool.
How Levinswap Liquidity Pool Works
With Levinswap, now anyone can offer liquidity in a simple and cost-effective manner. Levinswap leverages xDai blockchain to be able to offer fast and inexpensive transactions.
Liquidity providers at Levinswap receive fees directly in proportion to their contribution to liquidity reserves.
At Levinswap there is a 0.30% fee for swapping tokens which are split into two: Protocol fee – 0.05% and Liquidity Provider fee – 0.25%.
The transaction costs are considerably lower than those found on Ethereum where transaction costs are dependent upon network load and where transaction costs could spiral into hundreds of dollars.
The team behind the Levinswap ecosystem is not alone in believing that the xDai chain will play a significant part in the development of Ethereum’s DeFi ecosystem, acting as a sister chain, rather than as a competitor.
However, it is hard to ignore the financial and practicasl benefit of using the XDai network as opposed to the Ethereurm one.
Ethereum Average transaction cost = $6+ Average Transaction time = 20 seconds
xDai Average transaction cost = $0.0004 Average Transaction time = 2 -3 seconds.
Meanwhile, on the Levinswap website, Average transaction cost = $0.0001 Average Transaction time = 3 seconds.
Levinswap – Aiming for the Top
Following a successful airdrop at the end of January in which 800 LVN tokens were distributed, Levinswap, which it describes as being built for the common man, recently upgraded its user interface and importantly, are introducing farming.
Liquidity providers of Levinswap are now, as of a couple of weeks ago, able to stake their LP tokens to the Farm in return for Levin to incentivize keeping the liquidity in the Levinswap ecosystem.
The connection to Levinswap is amazingly simple too. After visiting app.levinswap.org, connect your wallet by clicking the ‘Connect to a wallet’
Once the wallet is connected, the user is ready to trade or provide liquidity or both!
After an exciting and successful launch, Levinswap is making strong inroads into the world of liquidity mining and definitely appears to be one to watch in 2021.
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