Cryptocurrency

Setcoin liquidity at Waves DEX after ICO

One of the key skills of an entrepreneur is to have the ability and vision to choose correct partners to work with for further growth. When an entrepreneur gets in touch with right partners, his company will grow not only from his and his team’s everyday work but also from the work of its partners’ team and the market.

At the beginning of our the Setcoin ICO event, like every startup, we had to decide what platform to use for our token. At that moment and present, the most commonly used platform for such purposes is the Ethereum platform. Most startups issue tokens on Ethereum platform, which is recommended as the common solution in the market, but when we needed to decide, Waves platform grabbed our attention. Although it is not as popular in the crypto world as Ethereum, it has good growth potential due to its interesting background in its core values. Waves founder Sasha Ivanov’s win/win collaboration business model between consumers, entrepreneurs, personal and institutional investors is very similar to Inserviss and Setcoin’s collaboration business model between service providers, customers, investors, and marketplace. We have a similar vision of how blockchain could be in the future.

Waves platform was founded on the idea that blockchain is a technology of the people: a grassroots phenomenon that puts ordinary people and companies back in control of their own finances, business processes and much else besides by offering fundamentally improved security, transparency, and convenience.

As “blockchain for the people”, waves caters to a range of stakeholders, and its platform is designed to deliver value to different users and use cases: consumers, entrepreneurs, personal and institutional investors alike. It’s an ecosystem of businesses, services and communities, all utilizing the benefits of waves’ cutting-edge and constantly evolving technology.

More details https://blog.wavesplatform.com/waves-ecosystem-explained-c4a37cdee087

Token creation at waves DEX is faster, simpler and costs less than on other platforms, with tokens immediately tradable on the built-in decentralised exchange. Waves was designed to address the shortcomings of existing blockchains, with custom token creation and management its number one priority. Whilst there are several blockchain platforms that allow users to create custom tokens, these all have various flaws for mainstream users.

Here are some benefits of issuing tokens at waves compared to the current solution that is now on the  market (such as Ethereum):

‘No smart contracts required

Anyone can create a token: no programming experience needed

Consequently, no code audit required, minimizing overheads

No maintenance or monitoring needed

Tokens launch in under a few seconds

It costs just 1 WAVES to launch a new token

Tokens trade immediately on Waves’ integrated decentralized exchange’

With 100 transactions per second speed, waves ecosystem is faster than existing solutions.

More https://blog.wavesplatform.com/waves-ng-stress-test-results-in-44090f59bb15

Waves have recently announced launching ‘Liquid token’, a token that offers a mechanism for market makers and issuers to cooperate in a more streamlined way. This is one of the solutions to get Setcoin liquidity after ICO.

That’s how it works. Say you have issued your ICO token, completed a successful ICO, and want your token liquid at DEX (some people forget that there’s life after ICO, but let’s suppose you’re not one of them). People buy and sell your token at DEX, it doesn’t happen by itself, someone places the buy and sell orders and maintains the order book. You don’t want to mess around with the DEX API (after all you want to build your product, not code some trading bots), so you need a market maker. There’s a pool of market makers working with DEX, who can give that service to you. A Liquid token is just a payment instrument which facilitates your cooperation with them.

To start market making for your token you do the following:

Agree on the amount of the Liquid you need to send to the market maker to pay for the service.

Buy this amount of the token from the open market. Thus, there’s always demand for the Liquid token, which pushes its price up.

Transfer this amount to the market maker.

Then the market maker does the following:

Burns 10% of the received token to reduce the token supply.

Converts part of the amount into BTC, Waves and other tokens you want to have your token trading against.

Starts providing liquidity for Token/Waves, Token/BTC, Token/Liquid…. Markets.

As you can see this is a very simple mechanism. We get guaranteed liquidity for good tokens at DEX at the same time creating a new liquid instrument, which should appreciate in value over time. It’s a win/win, and once we have smart contracts this mechanism can upgrade to include an automated, Bancor style, market-making.

Waves team are doing a great job and moving extremely fast in their growth. Besides what they have already done and released in the market, they also have new solutions partnerships and integrations. We are happy to join this ecosystem at the current stage of our growth and look forward to using and implementing new features that waves team create with creative thinking and own vision of how things could be.

You can find waves February review here:

https://blog.wavesplatform.com/waves-february-review-c1bd09b4a7a2

Written By:

Igor Perepelychnyy.

CEO, Inserviss.

Comments
To Top

Pin It on Pinterest

Share This