The decentralized platform claims to help create a connected network of DeFi ecosystems – and offers an innovative hybrid model that combines transaction-free mining operations and liquidity operations.

MiniSwap reports that cryptocurrency exchanges are currently processing billions of dollars in trading volume every day, but major issues have been identified on central platforms. The team points to the failed saga of QuadrigaCX, a Canadian stock exchange that lost about $ 190 million in client funds when the owner died.

While the project is convinced that decentralized alternatives help eliminate trust issues by allowing traders to buy and sell cryptocurrencies on a peer-to-peer basis, MiniSwap argues that there are drawbacks that decentralized exchanges need to address. Resilience, unfairness, and long grievance response times are three of the biggest challenges, and motivating liquidity providers to participate can be challenging due to “misdirected incentives”.

MiniSwap aims to change this by encouraging both traders and liquidity providers to join the ecosystem. The project also argues that this approach is sustainable as it uses a mining process that can last 100 years.

In a warning that the status quo may not continue, the project’s announcement states: “Several exchange platforms have been created to offer users practical coin exchange services. However, the vast majority of these are centralized platforms and require access to user keys. In other words, users must fully trust the services offered by the exchange platforms. In general, such strong trust cannot be established, and it also contradicts the principle of building a decentralized financial system. ”

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This is where MiniSwap comes in.
The MiniSwap project is building an Ethereum-based decentralized automated trading platform that easily paves the way for any pair of tokens supported by the Ethereum ecosystem. This is where the hybrid mining model comes into play. As the post says: “All members including traders, liquidity providers and MINI owners will receive MINI for their contribution in the form of trading bonuses, booking bonuses and community bonuses, respectively.”

This will pave the way for the launch of MiniSwap DeFi, which houses a range of decentralized finance products, including derivatives such as options and futures. DeFi is one of the fastest growing sectors in the cryptocurrency industry right now, and the team behind the project says this is an important step in ensuring MiniSwap becomes an ecosystem, not just a pool of liquidity or an exchange service. ”

Last but not least, the team has core development for a service known as MiniSwap Global that allows the DeFi platform to interact across distributed ledgers and allows merchants to “trade seamlessly across blockchain platforms.”

While MiniSwap recognizes that transaction-free mining and liquidity operations, which are the two main components of the hybrid model, are nothing new, the draft says that previous attempts to implement them have been unsustainable. She points to FCoin, the first cryptocurrency start-up to take this approach, and warns that the system will lose its viability when all coins are minted because “there are not enough resources to distribute them.”

To address this issue, MiniSwap has an upper limit on the number of icons that can be created each day – 500,000 to be precise – and this limit is gradually reduced each month until the final minimum of 18,000 characters is reached.

On September 7th, MiniSwap launched its first project, YMI, and claims to have already attracted an active community. On a September 11 blog, she revealed that her Telegram channel has 3,540 members and that she now has 3,117 followers on Twitter. The platform also has a large following in China, with over 2,826 people following the development as it continues its journey along the roadmap.

Source: CoinTelegraph

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