ReactSwap V0 testnet, Q1 2022

After working for three months on our first DEX implementation, deploying AMM-V1 (Uniswap V2 + Sushiswap + Pancakeswap fork + RFI) and testing on ropsten testnet, talking to investors, economists, and techs, we concluded that the Market does not currently need such DeFi product and has no prospects in the long term. Blockchain ecosystems are filled with similar services (uniswap v2 and pancake forks). In this form, the project will not be able to consistently generate revenue for our DAO. Reactswap in V0 implementation has nothing innovative and cannot attract investments as a start-up in 2022.

Lacks of ReactSwap V0 testnet

Uniswap V2 (amm-v1 contracts)

• blurred liquidity of Uniswap V2 pools
• single commission for all pools without the possibility of change
• constant product formula only
  • non-permanent loss
  • high slippage
• bad stable-stable pairs liquidity providing abilites

Network support

• no support for multiple networks
• no cross-chain exchanges
• no cross-chain liquidity

Management

• lack of funding
  • initial liquidity
  • marketing
  • development
• tight deadlines for the development and launch of a promising DeX AMM and revenue generating unit

Some problems of the decentralized markets and exchanges

• liquidity fragmentation
• cross-chain liquidity management issues
• problems with liquidity incentiving for new decentralized projects
• weak capabilities of decentralized order book marker makers
• weak capabilities of cross-chain crypto trading

ReactSwap: next-gen decentralized exchange

Our DeX project idea is simple - solving problems relevant to the decentralized financial industry of those that we know how to solve.

Swap at the best price [MVP-1]

• universal DeX SDK
• swap with the best rate
• liquidity aggregation
• formation of the best route

DeX trading and analytics [MVP-2]

• price charts for all DeX pairs
• token/pair/dex trades, volume

Cross-chain swap [MVP-3]

Native DeX cross-chain interoperability.

• cross-chain router
• Stability Bridge integration for synthetic assets
• Connext intergration for stable coins

Order book [MVP-4]

Decentralized order book market maker for fungible tokens.

• on-chain order book
• executing orders on top DeX AMMs

Various AMM liquidity pools [MVP-5]

• R-pool: 2 tokens, Uniswap invariant (constant-product formula) (AMM-V1 RLP, implemented in V0)
• U-pool: 2 tokens, Uniswap invariant (constant product formula), liquidity ranges, 5 types of pool fee
• B-pool: 2-16 tokens, constant average formula/value function, different pool weight,
• C-pools: 2-8 tokens, Stableswap invariant (hybrid formula)

Liquidity incentive platform

• ReactFarm and React Pools (implemented in V0)
• User liquidity farms
• User rewarding pools

Possible features

• liquidity lock / provider certification
• trading competitions
• leverage lending & trading

Fundraising

Implementing a modern competitive decentralized exchange requires significant investment. This proposal is an attempt to start financing the development of the project from Stability DAO Treasury before project will be ready for venture capital, grants and other investments. Until the full implementation of the project, project milestones are investment rounds. To start working on fundraising for development, we want to develop white paper, MVP-1, as well as tokenomics model and pitch decks. Propose to allocate 50,000 PROFIT for these works.

Stability DAO Unit

Each minimum viable ReactSwap product will generate revenue for the DAO.

Proposed transaction

Transfer 50 000 PROFIT to Development Fund. ReactSwap RnD, WP, MVP-1.