Deswap — First ever synthetic stablecoin protocol built on Polygon Network

On the Polygon chain, the Deswap Protocol is designed to enable a comprehensive algorithmic money market protocol. The protocol designs are based on Venus[ 1 ] and Aave[ 2 ] , and they are synchronised into the Deswap platform, combining the advantages of both systems into one.

Deswap(DAW) protocol powers the world’s first decentralised stablecoin(YAI) built on polygon network, which is backed by a basket of stablecoins and crypto assets with no centralised control .We are aiming to change the interaction between the lenders and borrowers so that people can exchange assets without seamlessly loosing their funds in the form of higher gas fee. On the Polygon chain, the Deswap Protocol is designed to enable a comprehensive algorithmic money market protocol. To begin, the Deswap Protocol(DAW) will allow users to mint YAI (YAI), a synthetic stablecoin pegged to the price of $1 USD, by using the yTokens from the underlying collateral already submitted to the protocol. Users may borrow up to 50% of the remaining collateral value in their yTokens to mint YAI.Stablecoins on the Deswap Protocol can be created synthetically and added as a proposal through Governance. The protocol’s default stablecoin will be YAI, which can be created using collateral previously committed in Deswap.The ability to use the collateral provided to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that safeguard the foundation with very low gas fee and fastest block confirmations is what sets Deswap apart from other money market protocols.These synthetic stablecoins are backed by a cryptocurrency basket rather than a basket of fiat currencies. Deswap makes use of the Polygon chain to conduct rapid, low-cost transactions while also gaining access to a large network of wrapped tokens and huge liquidity..Users can use their cryptocurrencies by committing over-collateralized coins as collateral to the our ecosystem, which may then be borrowed. This offers a safe lending environment in which the lender get paid an annual compounded interest rate (APY) per block and the borrower is charged interest on the crypto borrowed.The protocol sets these interest rates in a curve yield, in which the rates are automated based on the demand of a certain market, such as top cryptos. The ability to use the collateral provided to the market not only to borrow other assets but also to mint synthetic stablecoins with over-collateralized positions that safeguard the foundation with very low gas fee and fastest block confirmations is what sets Deswap apart from other money market protocols.These synthetic stablecoins are backed by a cryptocurrency basket rather than a basket of fiat currencies. Deswap makes use of the Polygon chain to conduct rapid, low-cost transactions while also gaining access to a large network of wrapped tokens and huge liquidity.

Liquidity Providers

The platform’s customers may choose to employ enabled cryptocurrencies or digital assets as collateral in the creation of loans, or to provide liquidity, and earn an APY.

Enabling lenders to act as borrowers, while also securing collateral, is made possible via supplying assets like as bitcoins or digital assets to Deswap. A variable-based interest rate will be paid out to users dependent on how much of the yield curve is used in that market. Any user supply is held in smart contracts where all user resources are pooled and so that users may withdraw their resources when the protocol balance is positive.

Borrowers

The platform’s customers may choose to employ enabled cryptocurrencies or digital assets as collateral in the creation of loans, or to provide liquidity, and earn an APY.

Enabling lenders to act as borrowers, while also securing collateral, is made possible via supplying assets like as bitcoins or digital assets to Deswap. A variable-based interest rate will be paid out to users dependent on how much of the yield curve is used in that market. Any user supply is held in smart contracts where all user resources are pooled and so that users may withdraw their resources when the protocol balance is positive.

Liquidation

While the Deswap ecosystem is mature with some educated users and liquidators, the calibration of the parameters is aggressive because the ecosystem is maturing and the users have formed their own ideas and values.

Social Media. :

First ever synthetic stable coin built on Polygon chain