In this article, we will take a look at XDCSwaps — a decentralized exchange built on XinFin XDC Network.
What is XDCSwaps?
XDCSwaps is a decentralized exchange for swapping XRC-20 tokens.
Familiar with Uniswap or SushiSwap? Then you’ll have no issue grasping XDCSwaps– they are quite similar in their core design.
The XDCSwaps exchange
XDCSwaps uses an automated market maker (AMM) model. That means that while you can trade digital assets on the platform, there isn’t an order book where you’re matched with someone else. Instead, you trade against a liquidity pool.
Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.
So, in short, you can trade XRC-20 tokens, or add liquidity and earn rewards. There are also other features we’ll cover later
You’ll find these LP tokens in several flavors — if you added, say, XDC and BLKZ to the pool, you’ll receive XDC -BLKX LP tokens in return.
Farming and staking on XDCSwaps
But wait, there’s more! XDCSwap also allows you to farm its governance token — BLKZ.
On the farm, you can deposit your LP tokens, locking them up in a process that rewards you with BLKZ and XDC. Which LP tokens can you deposit? BLKZ-XUSDT and XDC-XUSDT
You’ll notice if you visit https://exchange.xdcswaps.com/#/swap that many features are inaccessible until you click on Unlock Wallet. Click on it, and you’ll be met with a few options: MetaMask, and XDCPay as a other options.
But wait, we hear you say, isn’t MetaMask an Ethereum wallet?
Yes, it is, but the architecture of XinFin XDC Network is such that you can use MetaMask to interact with XDC-based DApps. If you choose to use MetaMask, You will have to XDC Network over metamask through https://chainlist.org
Once you’ve got that set up, you can unlock your wallet to reveal additional information. You’ll see that different LP tokens promise different returns. So how can you add liquidity?
Again, if you’ve used any AMM previously, then you know the drill. To farm BLKZ, and XDC you need to first add liquidity to the exchange.
Navigate to Add Liquidity, and select the token pair that you want to deposit. Also, make sure you know about impermanent loss before adding liquidity to a pool.
Okay, so you’ve got your LP tokens, now it’s time to stake them to earn BLKZ and XDC . Navigate to the Farms tab, and select the option that matches your LP tokens.
Once that transaction confirms, simply select the amount you want to stake and confirm it. You can navigate away from the page and come back at any time to check how much XDC and BLKZ you’ve earned — if you want to harvest your rewards at any point, click on Harvest and confirm the transaction.
Once you’ve got XDC and BLKZ , you can stake it i. Go to the Pools tab, and you’ll be presented with the pools where you can stake your XDC or BLKZ .
Once again, you need to approve the withdrawal of your tokens. Hit Approve XDC or BLKZ to do so. When that has been approved, you’ll need to select the amount of XDC or BLKZ you want to stake.
Now that the XDC or BLKZ has been staked, you’ll be earning the reward token of the pool passively. If you’d like to cash out your rewards, click on Harvest.
XDCSwaps is one of the biggest AMM projects on XDC Network with some innovative features. You can also track a lot of its metrics on https://app.xdcswaps.com/
Ethereum may have kickstarted the DeFi trend, but initiatives like XDCSwaps suggest that the wave of innovation is destined to spread to other chains.
If you have any queries, you can submit your issues on XDC.DEV