Rabbit Swap presents an innovative cross-chain swap solution.
Geneva, Switzerland, February 10, 2024, Chainwire
In the dynamic environment of cryptocurrency trading, Rabbit Swap introduces a new swap approach that aims to improve the efficiency and potential benefits of cross-chain swaps for users.
At the heart of Rabbit Swap’s strategy is its commitment to managing a broad network of liquidity sources. This approach not only guarantees the most competitive swap rates based on the pair and amount chosen, but also completely eliminates swap limits.
The main challenge for most cryptocurrency exchanges is finding and managing liquidity. Therefore, whenever someone wants to exchange some asset, the exchanger must be able to purchase that asset for another asset, preferably covering all possible amounts, from very small to large.
Developers have three primary sources of liquidity:
- Maintain centralized liquidity yourself or a third party
- Relies on APIs from traditional trading platforms.
- We develop decentralized algorithms that enable the community to provide liquidity.
Each method has its pros and cons. Maintaining centralized liquidity, either your own or third-party, requires the development of advanced Automated Market Maker (AMM) systems. Traditional trading platforms use a classic order book model where buy and sell orders are matched based on price and time. In contrast, AMMs automate the process by using algorithms to set prices from liquidity pools, eliminating the need for order books. This model promotes continuous and automatic rebalancing of asset ratios, ensuring liquidity even in the absence of direct buyers and sellers.
Relying on the APIs of existing trading platforms compromises the diversity of available swap pairs. While it is simple to find a platform that supports mainstream pairs like BTC/USDT, the real challenge comes with less common pairs like SHIB/DOGE.
Creating a decentralized algorithm that allows community members to contribute to liquidity is an attractive approach. It is decentralized and driven by community participation to provide mutual benefit. However, the complexity lies in creating algorithms sophisticated enough to safely and fairly balance all assets. A big hurdle is integrating highly volatile assets. This is because the inherent unpredictability makes it difficult to offset volatility through exchange fees alone.
To address every possible need, ensure unlimited swaps, and maintain the most competitive prices, the Rabbit team designed a solution that combines a variety of methods into one seamless and user-friendly service. Enter your swap pair and amount and Rabbit Swap will instantly calculate the best option for your swap, similar to how Google Maps determines the most efficient route. By selecting the ideal liquidity source for each specific swap, we guarantee users the best interest rates at the time. The project is currently in its early stages and offers around 50 assets for exchange, but more than 3000 assets are expected to be added in the coming weeks.
About Rabbit.io
Rabbit.io, the developer of the open source self-managed Rabbit Wallet, advocates reducing reliance on centralized exchanges and traditional financial systems. With Rabbit Swap, Rabbit.io is committed to facilitating seamless integration between the evolving cryptocurrency sector and established financial practices. This initiative will allow users to conduct transactions such as buying, selling, and swapping cryptocurrencies while maintaining full control within a secure, self-managed wallet, taking a step towards a more open and decentralized financial future.
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