Suiswap is a DEX project built on the Sui blockchain with the goal of providing a safe, fast and flexible trading environment for the SUI ecosystem. Suiswap also aims to support token swap of other protocols built on top of Sui.
Traditional Liquidity Pools
Similar to UniSwap, trading on Suiswap is also based on traditional liquidity pools. At the time of writing, Suiswap is supporting 5 different liquidity pools including SSWP/SUI, SUI/USDC, SUI/USDT, WETH/USDC and WETH/SUI. Users can contribute assets to the pool and earn a portion of the trading fees generated by the platform.
Stablecoin Liquidity Pools
Suiswap also has stablecoin pools similar to those on Curve Finance. These pools provide lower slippage and tighter spreads when trading stablecoins, making them an attractive option for traders and LPs alike. Suiswap is now supporting stablecoin pools that are USDT/USDC and soUSDC/USDC.
Central Limit Order Book Trading Platform
This component allows users to place limit orders, giving them greater control over their trades while also being able to trade at better prices through the protocol’s AMM.
Decentralized Aggregator is a key component of Suiswap that helps to combine liquidity from order-book and liquidity pools to provide higher liquidity and lower slippage for trades, thereby providing an efficient trading experience for users.
Users who provide liquidity to Suiswap’s pools will be able to participate in liquidity farming, earning SSWP tokens as a reward. This incentive mechanism aims to attract more users to the platform, increasing liquidity and improving the overall trading experience.
Yield Farming and Platform Revenue
This component provides additional incentives to encourage users to hold and use SSWP tokens, supporting the growth of the Suiswap ecosystem. Users can participate in Yield Farming by staking SSWP tokens and receive a share of the platform’s revenue.
Token use cases
SSWP tokens are used to:
- Platform Revenue: Approximately 60% of the platform revenue will be distributed evenly among SSWP token holders. All you need to do is lock your SSWP on the Suiswap platform, and you can receive the corresponding platform revenue every 14 days without unlocking your tokens.
- Platform Governance: By staking your tokens through SUI blockchain-based smart contracts, you can govern the SUI platform and community.
- Yield Farming: By locking your SSWP on the Suiswap platform, you can earn additional SSWP rewards when you unlock your tokens.
- Trading, Holding, and Circulation: Like other tokens, unlocked SSWP tokens can be traded, held, and circulated on the blockchain.