Energi Takes a Big Step Into DeFi With Energiswap

Our new decentralized exchange, Energiswap, has launched on the Energi Testnet. This marks a significant step toward establishing Energi DeFi — our native suite of Decentralized Finance (DeFi) products built within the Energi ecosystem. Based on the well-established Uniswap protocol, Energiswap utilizes the full power of the Energi blockchain to deliver a decentralized exchange that is unparalleled in terms of fees, stability, and security.

What is Energiswap?

Energiswap is a decentralized exchange and crypto swap protocol that is the first of a suite of DeFi products to be built on the Energi Blockchain. This includes multiple upcoming DeFi projects like Energi Synthetic Assets. Once fully rolled out, these will serve to support our long term goal of becoming the leader in DeFi products.

While there are several existing decentralized exchanges, we identified some key areas where we could deliver industry-leading improvements with Energiswap. With the power of the Energi blockchain underpinning a decentralized exchange, we felt confident that we could improve on the security, transaction cost, and user experience of all existing competitors. Below, we take a look at what sets Energiswap apart from the rest.

Low Fees

Our Gen 3 blockchain has been heavily optimized for DeFi. We implemented a layer 2 protocol that can deliver highly cost-efficient transactions as we scale. This, combined with our enhanced Ethereum compatibility, makes Energiswap one of the cheapest and most stable decentralized exchanges on the market.

Unrivaled Security

As a part of the larger Energi ecosystem, Energiswap benefits directly from the expertise of our dedicated security team, the Energi Bureau of Investigations (EBI). Coupled with the on-chain governance provided by our masternode network, Energi has reduced on-chain crime by over 90%.

World-Class Support

Energiswap has something that few other platforms in the DeFi space can claim. One of the things that we are proudest of at Energi is our world-class community support team. As with all products in the Energi ecosystem, Energiswap will also have responsive, knowledgeable support available for all users, 24/7.

Governance

Because it is housed on the Energi blockchain, Energiswap is managed by our unique system of decentralized governance. This means that masternode owners on the Energi blockchain can propose and vote on the next steps for Energiswap, ensuring that it is always driven by the interests of our ecosystem’s most invested users.

How Does Energiswap Work?

Like the protocol it’s based on, Energiswap functions as a decentralized exchange for swapping any ERC20-compatible token with any other ERC20-compatible token. Using the constant product equation, Energiswap manages liquidity pools of token pairs to allow them to be traded. This removes the need for buyers and sellers to generate demand, locking the pair into a price match determined by the available liquidity that allows for tokens to be easily swapped directly with each other.

This system also helps to combat the liquidity problem that many decentralized exchanges face. In addition to swapping tokens, users can also provide liquidity to the pool for a token by locking down equal amounts of NRG and the token. As an incentive, liquidity providers receive a distribution of the fees generated by trades. This ensures that there is always adequate liquidity in the marketplace.

We have launched Energiswap on the Testnet with a limited selection of tokens available for testing: eDAI, eBTC, eETH, and wrapped NRG. eDAI is a synthetic version of the DAI stablecoin that maintains a value of ~$1.00 USD. eBTC and eETH are synthetic versions of BTC and ETH on the Energi blockchain.

The same four tokens will be available for immediate trading after the public launch of Energiswap. However, we will begin aggressively scaling up the list of tradable assets on Energiswap shortly after launch. This will include additional cryptocurrencies and a variety of other financial instruments. The goal is to allow users to remain in the Energi ecosystem while trading a comprehensive range of diverse assets. Users will also be able to swap NRG to wrapped coins at a much lower cost than existing decentralized exchanges.

How to Start Testing

To get set up for testing Energiswap, just head over to our DeFi Support page. Under the Energiswap section you will find all the information you need on how to set up Meta Mask for the Energi Testnet and instructions on how to use Energiswap.

Before you can test Energiswap, you will also need some Testnet NRG (tNRG). You can easily request some using our live chat function on the DeFi support page. Just click on the help widget in the bottom right and select “Testnet NRG (tNRG) Request Form” from the list. Once you provide us with the necessary information, we will send you some tNRG to test with as soon as possible.

Summary

We believe that DeFi is going to be a major driving force for the widespread adoption of cryptocurrencies and blockchain technology. This is why we have made it a central part of our long-term strategy for the Energi ecosystem.

Energiswap, our new decentralized exchange, is the logical first step toward our goal of building a thriving DeFi marketplace. With the combined power of a modified Uniswap protocol and the Energi blockchain, it will deliver a decentralized trading experience that is currently unmatched in the space.

Follow us on Twitter and Telegram for the latest Energi News, and join our vibrant Discord channel to connect with others, learn more about the worlds of Crypto & NFTs and be part of the Energi Community.