Blockchain technology has made a definite difference in how financial activities are carried out, adding finesse, swiftness and security to how transactions are carried out. Several use cases within the crypto ecosystems have been developed to help users make the most of the revolutionary system, eliminating the need for third parties during transactions while providing financial inclusion to everyone. 

One major use case is performing currency swaps. Swaps are an in-wallet crypto-to-crypto exchange, allowing users to easily exchange one cryptocurrency for another without leaving their Wallet. This is carried out on Decentralized exchanges (DEX) like Binance, Okex, Coinbase etc.   

Coinswap is an example of the core DeFi ecosystem, the decentralised exchange or DEX –built on the Binance Smart Chain network. 

What Is Coinswap? 

Coinswap is the first decentralised swap protocol to integrate a fiat onramp as part of its service, known as Ramp – a fiat onramp that does not require any proof of address to be uploaded by its users. This merged partnership allows users to purchase crypto through Coinswap Space directly to their Metamask or other wallets using a credit card or bank transfer. With Ramp, it is the first DEX to implement these kinds of crypto purchases directly onto non-custodial wallets. 

The Ramp system also includes a token burn fee which is included to keep the token deflationary in nature. This fee collected from the transactions will be used to decrease the circulating supply which will eventually help the investors as the price of the token increases. Apart from the 2.49% Ramp fee, and 0.18% Network fee, Coinswap charges a 0.97% CSS token burn fee. 

Coinswap Space is a suite of DeFi tools that allows it to engage in various DeFi functions through an easy-to-use protocol. With DeFi as its focus, CoinSwap users can add capital to liquidity pools, stake tokens, and yield farms all on one easy-to-use interface. 

Major Perks on Coinswap

High transaction fees are forcing most crypto projects to deploy on the blockchain with relatively low fees.  Coinswap targets users that are avoiding high gas fees on blockchains like Ethereum and aim to be the best DEX in this regard.

Coinswap can deliver these processes with incredibly low transaction fees, all thanks to the efficiency of BSC. Even relative to major DEXs on BSC, Coinswap can provide rock bottom fees, charging 20% less than BSC’s largest DEX –PancakeSwap.

 Also, it is worth noting that Coinswap remains entirely decentralised and does not require any registration or KYC. In such a case that investors wish to use Ramp’s onboarding process is when they must provide their identity information to Ramp.

About Coinswap Space

Coinswap was founded in April 2021 and was created for swapping BEP20 tokens on the Binance Smart Chain. Coinswap Space uses an automated market maker (AMM) model where users can trade against a liquidity pool. Those pools are filled with users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in exchange. Now, they can use those tokens to reclaim their share, plus a portion of the trading fees.

Furthermore, the Coinswap Space platform can launch new pools, an automated market maker that utilises smart routing. The liquidity provided to the swap comes from Liquidity Providers (“LPs”) who stake their tokens in “Pools”. In exchange for this, they get CS-LP (CoinSwap-LiquidityProvider) tokens, which can also be staked to earn CSS tokens in the “farm.”

Two tokens exist within the CSS ecosystem. Contributing to the CSS liquidity pools will grant users CSS-LP tokens. CSS-LP tokens can then, in turn, be staked in any of Coinswap’s various yield farming pools.

The DeFi features on Coinswap are established to curb the inconveniences provided by some blockchains, allowing users to enjoy a seamless experience on their platform. The use cases are best set up to give Coinswap an edge, making it one of  (if not the) best DEX in the crypto ecosystem.

Screen from RAMP with fee for buying and burning CSS as a part of the process.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.