The newly announced ONTOSWAP platform introduces crucial improvements to DeFi and DEXes. The product will undergo multiple iterations, each of which aims to further improve the concept. A strong roadmap is in place to make this a long-term success. Ontoswap will launch their token sales at the end of the month, and the V1 product by early next month, together with liquidity mining.
Ontology and DeFi
Over the past few months, ontology has built quite a powerful DeFi ecosystem. Rather than being another blockchain trying to mimic Ethereum’s concepts, the forged partnerships and ongoing collaborations are quite significant. One of the first projects to launch on Ontology is Wing, a credit-based lending platform focusing on cross-chain interoperability.
There is also the partnership with Waves. Seeing two major projects work together to advance decentralized finance will usher in many new Web 3,0 solutions. All of these partnerships focus on cross-chain interoperability, an aspect that will be crucial to DeFi in the future.
The Ongoing Evolution of ONTOSWAP
Introducing cross-chain swaps for DeFi and DEXes is a crucial initial development, There is plenty of liquidity distributed among these different ecosystems, yet ONTOSWAP is the only solution tapping into the different assets. Not only will this usher in a different era for DEXes, but it is also an intriguing concept for decentralized finance. Continuing to build on the initial foundation will help make ONTOSWAP successful.
In the first iteration of the platform, ONTOSWAP will borrow some elements from Uniswap. The world’s largest DEX has an elegant core design, but it lacks in other aspects. By introducing community-oriented features, the protocol design can be overhauled significantly. Participants will receive extra benefits through this approach, as well as its dual token model.
Future versions of the ONTOSWAP protocol will introduce core changes moving forward. Two weeks after the initial launch, a liquidity migration will occur. All tokens will be moved to ONTOSWAP contracts. Existing tokens staked on SushiSwap will be redeemed on Uniswap, allowing for the initialization of new liquidity pools.
Stakers will not need to undertake any action, as their YFO tokens will keep trickling in. Those who engage in transaction mining will start receiving ONTO tokens. It is at this time the referral program will launch to further help develop the ecosystem itself.
Looking Forward to Version 3.0
Another iteration of ONTOSWAP has already been documented in the whitepaper. ONTOSWAP v3.0 is the proper cross-chain decentralized exchange built on Ontology. Providing cross-chain swaps, convenient trading, and several new mining pools will be the main focus during this stage. Furthermore, the team will continue to build financial products, ranging from decentralized futures to options and much more.
Perpetual swaps will be implemented through synthetic trading to achieve exposure to arbitrary liquid assets through tokens on different chains. Liquidation will occur through on-chain price oracles. It is expected the entire order book will remain off-chain, to improve liquidity and price movements.
For options trading, there will be a slightly different approach. Currently, DeFi and options trading do not mix well. ONTOSWAP’s team is intent on exploring options to develop derivatives using Ontology technology. What that will entail exactly, has yet to be determined. Keeping an eye on the team’s official channels , as well as Twitter and Telegram will prove worthwhile.