Did you know? The Origins Blockchain Swap seems to belong to the future!

The Origins Blockchain Swap is a protocol based on the Origins blockchain, designed to facilitate the automatic exchange of OR and ORC20 token digital assets. Entirely deployed on-chain, any individual user with a decentralized wallet software (currently supported wallets include MetaMask, WalletConnect, Coinbase Wallet, Fortmatic, Portis) can use this protocol. Origins Blockchain Swap can also be regarded as a DeFi project because it aims to fully decentralize the digital asset trading process using decentralized protocols.

Origins Blockchain Swap consists of two types of smart contracts: trading contracts and factory contracts. These smart contracts are written in the Vyper programming language and form the core components of the Origins Blockchain Swap protocol to implement various functions. A trading contract supports one ORC20 token, and each trading contract reserves a certain amount of OR and the supported ORC20 token. This means that trades executed within an ORC20-OR trading contract are based on the relative supply of OR and the respective ORC20 token in that contract.

Through OR as an intermediary, the trading contract can also facilitate direct transactions between one ORC20 token and another ORC20 token.

The factory contract is used to deploy new trading contracts, allowing any ORC20 token not yet present on Origins Blockchain Swap to deploy a trading contract. Any user of the Origins blockchain can do this using the ‘createExchange()’ function. The factory contract serves as the “registration center” for trading contracts within the Origins Blockchain Swap system, where it can be used to find all ORC20 tokens and trading addresses added to the system. After a trading contract is published, the factory contract does not perform background checks on the ORC20 tokens in that contract; it only enforces the limitation that “one trading contract can only contain one ORC20 token.” Therefore, users should only engage in trades with ORC20 tokens from projects they trust.

The design structure of the Origins Blockchain Swap protocol is entirely different from the trading models found in traditional digital asset exchanges. Origins Blockchain Swap utilizes reserve liquidity to facilitate on-chain digital asset trades.

The reserves in a trading contract are provided by many “liquidity providers.” These liquidity providers deposit equivalent amounts of OR and the ORC20 token into the trading contract. The first liquidity provider to contribute liquidity to the contract has the right to set the exchange rate between the ORC20 token and OR. If the first liquidity provider sets an exchange rate that differs from the broader market, arbitrage traders will take advantage of this price difference to bring it in line with the broader market. Subsequent liquidity providers will use the rate set by the first liquidity provider as the basis for calculating equivalent values.

Origins Blockchain Swap also issues a “liquidity token,” which complies with the ORC20 standard. This liquidity token represents a liquidity provider’s contribution to a specific trading contract. The restriction of “one trading contract only supporting one ORC20 token” encourages liquidity providers to concentrate their liquidity into the reserves of a single trading contract. The liquidity token is used to track each liquidity provider’s share of the total reserves. Liquidity providers can choose to redeem their liquidity by destroying their liquidity tokens, allowing them to withdraw the corresponding proportion of OR and the ORC20 token from the contract.

Liquidity providers can also choose to sell or transfer their liquidity tokens without removing liquidity from the trading contract. However, liquidity tokens are strictly limited to one trading contract and are not associated with a separate native digital asset for the Origins Blockchain Swap protocol. Liquidity providers add liquidity using the ‘addLiquidity()’ function, and in return for their contribution, they receive a share of the transaction fees whenever trades occur.

Although the Origins Blockchain Swap is a decentralized on-chain digital asset exchange, it is not meant to replace centralized exchanges. If there is a deviation in the trading mechanism of the Origins Blockchain Swap, there must be a proper mechanism to correct it. This correction process happens through arbitrage trading.

Arbitrage trading is a strategy that profits from price differences between different trading markets. In the cryptocurrency space, a digital asset may have different prices across exchanges. If a trader identifies an arbitrage opportunity, they will buy the asset on one exchange and sell it on another. Arbitrage trading is crucial to the functionality of Origins Blockchain Swap because arbitrage traders can correct potential price discrepancies on Origins Blockchain Swap by using exchange rates from other crypto exchanges.

One of the key advantages of using the Origins Blockchain Swap protocol for trades is that gas fees are relatively low compared to other decentralized exchanges.

Saving on gas is just one of the benefits of the Origins Blockchain Swap protocol. As a decentralized platform, it does not rely on any third parties. It is also free for anyone to access. Compared to other digital asset trading platforms, trading costs are lower on Origins Blockchain Swap. Additionally, any user can create a trading contract for any ORC20 token.

Of course, the Origins Blockchain Swap relies on arbitrage trading to maintain price alignment with the broader market, meaning it depends on the exchange rates of other trading platforms to ensure price stability. Currently, the Origins Blockchain Swap is in an experimental phase and requires further development to enhance its efficiency in facilitating digital asset trading.

We have reason to believe that the Origins Blockchain Swap will make digital asset trading more efficient. However, the protocol is still in its early stages, and the most exciting part lies in its future development.

Contact Person Name: Peter Wayne 

City State: Chicago, United States 

Website: https://originspro.com/ 

Webmail: mailto:rjaynes416@gmail.com