EmiSwap AMM Exchange to Perfect The DeFi Market

5 min readOct 15, 2020

What do we know about AMM?

AMM (Automated Market Maker) is changing the perception of the financial world of the 21st century. This is a completely new innovative product created in the decentralized financial sector (DeFi) and based on decentralized exchanges (DEXs).

AMMs are created to change the exchange of cryptocurrencies between users. Instead of the usual buying and selling practice, each party that wants to trade will be pre-funded with liquidity pools in the chain. The liquidity pool allows different users to switch tokens on the chain in a completely different way from the normalized and decentralized way that has been practised previously. Liquidity pools allow users to easily switch between tokens in a fully decentralized and non-custodial way. Meanwhile, liquidity providers receive passive income from trading commissions, which depends on their share in the pool.

The AMM is built on a transaction method that uses an algorithm to calculate the price of a token right at the time of purchase. The process itself has no concept of sellers; instead, smart contracts act as an intermediary. The seller places the asset in a place called the liquidity pool, and then the buyer exchanges the assets they already have for the assets in the pool via a smart contract.

Obstacles to overcome

The current DeFi market has shown its opportunities, but also its disadvantages. The difficulties facing AMMs are:

Access to change the smart contract and the terms of interaction with the platform;
No vesting or team token lock which can lead to token market price dump;
Lack of ability of holders to make decisions on the next stages of project development;
Inability to receive income from part of the platform’s profit.

The key to the solution

Every problem has a solution. Therefore, EmiSwap has provided the answers to the issues above. So first things first, let’s disclose more details about the project identifying new solutions to current problems along the way.

EmiSwap is a cutting-edge automated market maker exchange, which allows the ESW token holders to be the owners of the project, have a right to get a share of profits and make decisions on its future development.

EmiSwap takes all the best aspects of AMM Uniswap V2 and AMM Mooniswap with the addition of an ESW token. The EmiSwap economic model works in a balanced way for all project participants.

EmiSwap is the first element of the EmiDAO ecosystem and in the future, the team plans to expand the number of products and services.

ESW token explanation

Decision-making. Any protocol changes are possible only through the community voting procedure among ESW token holders;
Profit share. 0.05% from exchange trading volume is distributed among ESW token holders in proportion to the share of ownership.

It is impossible to make changes to the smart contracts of the project without conducting a voting procedure. The voting procedure is only accessible to the project community and fulfills the required voting conditions.

Crowdsale Terms

Price - 0.11 DAI
Total Supply - 200,000,000 ESW
Crowdsale Allocation - 40,000,000 ESW (20%)
Vesting - 1 year with quarterly unlock by equal shared from date of purchase
Token Type - ERC20

ESW Token Allocation

ESW Token Vesting

Point 1 - 30% (60,000,000 ESW) for the Security of the Protocol and its Maintenance: 0.6 tokens are issued for each token issued as per clause points 2, 4, 5, 6 with similar vesting.

Point 2 - 20% (40,000,000 ESW) for the EmiSwap Decentralized Developer's Community: 0.4 tokens are issued for each token issued as per points 2, 4, 5, 6 with the same vesting.

Point 3 - 22% (44 million ESW) for Ecosystem Growth and Users Attraction: without vesting.

Point 4 - 20% (40,000,000 ESW) for Crowdsale Participants: vesting for 1 year with quarter unlock by equal shares.

Point 5 - 5% (10,000,000 ESW) for Advisers, Ambassadors and Community Extension: 20% without vesting; 80% with 1 year vesting with quarter unlock by equal shares.

Point 6 - 3% (6,000,000 ESW) to EmiSwap Early Liquidity Providers and Swappers: without vesting.

Early Participants Rewards

After the launch of the EmiSwap protocol, users can perform swaps, get acquainted with the project in practice, and profitably exchange assets one for another.

Audit procedure

Being an open-sourced project, EmiSwap can be reviewed by the third-party developers to recommend platform fixes and modifications and participate in platform development.

The full release of the platform is conducted after the smart contracts security audit. Audit proposals were submitted by the following companies: PeckShield, OpenZeppelin, Consensys, Certik, Quantstamp, Pixelplex, and Firstbridge.

Referral program

If the user who made the swap is a referral of another user, then the corresponding user is credited with ESW in the equivalent of 0.01% of the trading commission as a reward for a level-one referral program. That is, the referral reward is equal to 20% of the income generated by his referral to the EmiValut pool.

To stimulate crowdsale, there is a 3-level referral program. The following percentages are set for referrals: