Written by Marlon

On March 26, 2021

Proton Swap is now officially live!

We’re beyond excited to announce that, after months of hard work and development, Proton Swap is now officially live! 

What is Proton Swap?

Proton Swap is a next-generation decentralized cryptocurrency exchange that facilitates automated trading between cryptocurrency tokens on the Proton blockchain through the use of smart contracts.

Due to the speed and flexibility of the Proton blockchain, users can enjoy instant and seamless transactions on Proton Swap without having to worry about paying gas or mining fees, like they’re forced to pay to transact on other blockchains. 

Audited by PeckShield, an industry-leading blockchain security company, Proton Swap was found to be a secure and reliable decentralized exchange. We know that your cryptocurrency is valuable to you, which is why we’ve taken extra care to make Proton Swap an easy, safe, and valuable tool for your journey through DeFi.

Swap

Swapping your cryptocurrency on Proton Swap is the most rudimentary function of this platform. The swapping feature allows you to exchange one cryptocurrency for another with just the click of a button; simply connect your wallet, choose the swapping pairs, set the amounts, and you’re ready to make a swap.

All swaps on Proton Swap are done without the need to deposit your cryptocurrency in a centralized exchange. By interacting directly with your wallet, swapped crypto will be withdrawn and deposited directly, ensuring you maintain complete control over your cryptocurrency at all times.

Unlike other swapping tools in existence, Proton Swap stands out by offering record-breaking fast swaps and industry-low fees. Most swaps between Proton-wrapped assets happen instantaneously, and any fees charged are negligible at most. That means no hours-long transaction times, no eye-watering gas fees, and no reason to regret a swap.

How to swap on Proton Swap

Pool

Liquidity pools allow decentralized exchanges of cryptocurrency to happen without the need for a centralized authority to hold reserves of both assets. Adding liquidity to the trading pool on Proton Swap allows you to earn a percent of any fees generated by the use of your tokens. Liquidity Providers enjoy 0.2% of every trade; the amount of crypto that you earned of this 0.2% is proportional to the amount of cryptocurrency that you provide to the traded pool. 

For example, let’s say there is a liquidity pool already in existence for the trading pair XUSDC and XPR, and the pool currently stands at 9,000 XUSDC and 900,000 XPR. You enter this liquidity pool, adding 1,000 XUSDC and 100,000 XPR. Since you’ve now added 10% of that liquidity pool’s total value, you’ll earn 10% of the 0.2% of fees generated by that pool.

While adding liquidity to the trading pools on Proton Swap is never intended to be a way to get rich, we recognize that incentives must exist to encourage the healthy growth of a decentralized exchange. Liquidity providers can enjoy returns on the crypto they provide to the pool as long as the pool remains a traded pair on Proton Swap.

How to become a liquidity provider on Proton Swap and earn fees

  • Go to the pool section of Proton Swap
  • Enter how much liquidity you want to add. You need to add the same value in USD to both sides of the pair
  • Click on the add liquidity button
  • Get paid fees when people trade

Convert

Converting cryptocurrency, sometimes known as “wrapped cryptocurrency,” allows crypto from one blockchain to function on a new blockchain and enjoy the benefits of its new blockchain ecosystem.

When you deposit crypto from a different blockchain, it will be converted under the hood into a Proton Chain Asset or X token wrapped on the Proton blockchain. For example, ETH becomes XETH, BTC becomes XBTC, etc. Likewise, when you withdraw crypto, the Proton Chain Asset will be converted to the native blockchain’s token. For example, XETH becomes ETH, XBTC becomes BTC, etc.

What is a wrapped asset or token?

A wrapped token is an asset hosted on a different blockchain with a price that is the same as the underlying asset, even if it’s not on the same blockchain. A wrapped token holds the identical value to another asset that it represents, either through a smart contract or by being backed one-to-one with the underlying asset.

What is the advantage of a Proton-wrapped token?

When a token becomes wrapped and converted to the Proton blockchain, it enjoys every benefit that native Proton tokens enjoy. That means instant transaction times, industry-low gas fees, and so much more. For example, while it’s nearly impossible to send one satoshi of regular BTC due to the gas fees associated with that blockchain, one satoshi of XBTC can easily and rapidly be sent to other wallets. This same logic applies for other Proton-wrapped tokens as well.

How to deposit crypto to Proton Swap

  • Go to the convert section of Proton Swap.
  • Select which crypto to want to deposit.
  • Copy the deposit address or scan the QR code.
  • Go to your crypto wallet and enter the copied deposit address and the amount you want to deposit. 
  • Send your crypto from the wallet to Proton Swap.
  • Your crypto will arrive shortly after the transaction was confirmed on the blockchain. You can track the status on the page. 

How to withdraw crypto from Proton Swap

  • Go to the convert section of Proton Swap.
  • Click on withdraw.
  • Select which crypto to want to withdraw.
  • Enter the amount you want to withdraw.
  • Enter the address to withdraw to.
  • Your crypto will arrive shortly to your crypto wallet.

Proton Swap incentives and new XPR utility

We want to keep Proton Swap growing and widening its user base, which is why we’ve created a series of incentives for the type of behavior we want to see happen more often.

To incentivize liquidity providers and XPR stakers, the per-trade fee on Proton Swap (0.3%) will be split between them.

Liquidity incentives:

0.2% of every trade goes to the liquidity providers (LPs) of that pool.

Protocol incentives:

0.1% of every trade goes to XPR stakers

Additionally, we’ve set up a progressively cheaper fee structure for users who stake XPR on Proton Swap. Trading fees on Proton Swap when staking XPR are as follows:

100K XPR staked gets a 33% discount

1M XPR staked gets a 66% discount

10M XPR staked gets a 100% discount

This means that staking XPR will not only provide you with the returns inherent to staking – which is a substantial amount of XPR – but will also provide you with reduced trading fees, too. We hope that this series of incentives can illustrate the attractiveness of the Proton token.

Current tradable coins on Proton Swap:

XPR

XBTC

XETH

XUSDC

XDOGE

XEOS

XMT (MTL)

XSENSE

XBNB

More exciting pairs and assets will become available on Proton Swap, stay tuned for more updates.

As a side note: the old way of swapping crypto using the Bloks tool will be phased out in two weeks as we increase the focus on our own native products.

We think there are plenty of reasons to be excited for Proton Swap and the Proton ecosystem at large. We’re working around the clock to make Proton faster, more capable, and easier to use than ever before, and we’re excited to bring you updates as soon as we have them. To catch the latest news on Proton, be sure to check out our website and follow us on social media.

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