Paraswap Protocol Overview

Date: 02/04/2021
Author: @Chinhnguyen

ParaSwap

1. Fundamentals:

– ParaSwap aggregates the liquidity of exchanges and lending pools to provide a comprehensive access point to Ethereum’s decentralized finance ecosystem.

– Paraswap allows dApps and traders to get the best DEX liquidity by aggregating multiple markets and offering the best rates

– With ChainLink‘s solution (Price Reference Contracts) a 1000 ETH Nexus Mutual coverage or GasToken (GST2) for gas optimizations, ParaSwap consistently provides its users with the best prices.

– Is working on a Smart Contract (Under development)

– Allows our users to swap Ethereum ERC-20 tokens directly from the liquidity networks such as Uniswap, Bancor, and Kyber Network.

– Goal: aiming to become the reference tool for swapping cryptos across chain Ethereum, Bitcoin, EOS, …

Source: https://www.youtube.com/watch?v=uCP7BCxsRs4

2. Outstanding Feature:

Paraswap is applying Chainlink Oracles (Chainlink’s Price Reference Contracts)

– Problems: Pricing is almost as critical as liquidity for a DEX aggregator. When the prices are not accurate, the transaction failure rate increases, which degrades the overall user experience

– Paraswap solution: Paraswap used to get its prices for ETH and ERC20 tokens directly from APIs, such as CoinGecko and CoinMarketCap. While satisfactory for initial deployment, switching to Chainlink’s Price Reference Contracts have three distinct advantages for Paraswap:

  • Speed: easily and cheaply read ETH and ERC-20 trading pairs on-chain prices and use them as the base price for determining which liquidity pools offer the best rates at a given moment in time
  • Price Accuracy: Chainlink’s Price Reference Contracts provide accurate market data sourced from a pool of high-quality data aggregators. While Paraswap was already using aggregators, Chainlink further extends our market coverage by having at least seven aggregators present on each Price Reference Contrac
  • Security: Chainlink’s Price Reference Contracts consist of decentralized oracle networks with 7–21 nodes each, which source data from at least seven different sources New Paraswap’s new UI, updated contract for even better gas efficiency (https://medium.com/paraswap/introducing-paraswaps-new-ui-a-significant-upgrade-for-our-contracts-ed15d632e1d0)

3. Competitors:

1Inch.exchange

Matcha

4. Tokenomics:

– Blockchain: Ethereum

– Token type: ERC20

– TGE/Listing: N/A

– Updating

5. Team:

Mounir Benchemled – CEO and Co-founder of Paraswap

Brice Berdah

Réda Berrehili

Owen Simonin

6. Partners/backers:

– Paraswap has completed a $2.7M seed funding round joined by some of the industry’s top investors (Blockchain Capital, Alameda Research, Arrington XRP Capital, Coingecko, Aave Founder – Stani Kulechov, Coinfund)

Lemnisscap

WoodStock

ChainLink

7. Ecosystem: N/A

8. Road Map:

– The main components of Paraswap road map are:

  • Multi-Path Routing: Users can get the best prices while advanced traders can design their routes using their in-house algorithms.
  • On-chain Price Feed: We’re going to open source and improve our On-Chain price feed Smart Contract
  • Flash loans: So that any user could get access to a large pool of liquidity to make advanced trades
  • Open source widgets: For dApps & websites that want to provide a decentralized aggregated liquidity for their users
  • Cross-chain swaps: Paraswap starting with Bitcoin and following up with other chains.

9. Reference:

Website

Twitter

Telegram

Medium

BTA Ventures