Decentralized exchange aggregator crosses DeFi blockchains for best trades

A cross-chain aggregator that seeks out the best price for crypto trades has reported positive results following its own token sale.

Launched simultaneously on DuckSTARTER, Gate.io, MXC, Bounce, BSCpad, WeStarter, and Cobax, the O3 Labs’ O3 token initial DEX offering (IDO) raised $922,000. 

O3 Swap sources liquidity from nearly two dozen decentralized exchanges (DEX), finding the best route to the best prevailing rate for trades, communications director Matt Powers told viewers of a Cointelegraph AMA that took place the day of the O3 Swap (O3) token’s IDO.

The protocol was built on top of the open-source project’s initial product, the O3 Wallet launched in 2017, Powers said, adding that O3 Swap is very user friendly.

“You'll be able to get quotes and, ideally, swap from there,” he explained. “You can always see what the trading path is — your coin might change hands several times into several different assets before you receive your destination asset. You'll be able to see the routes. You’ll be able to see the fee. It's very clear from the O3 Wallet using O3 Swap.”

O3 Swap also works with other digital wallets like MetaMask, he added.

‘Passionate about decentralization’

O3 does not and will not use centralized exchanges, Powers said. Nor does it require any of the Know Your Customer (KYC) controls required by many regulators, he added.

“We're passionate about decentralization. We don't think it's cool to have to register, upload your passport, get your tax filing … as you would on something like Coinbase,” Powers said. Nor, he added, does your crypto ever leave your O3 Wallet or your custody.

Like any DeFi protocol, O3 Swap will be launching staking via the O3 Hub, which will go live later this year as a kind of in-house liquidity pool, enabling cross-chain trading. 

“In the O3 Hub, we're going to invite users to stake their coins, their own liquidity to O3 Swap. That should make things a little more stable in the future,” Powers said when asked about slippage — the price change in the time between an order entering an exchange and the execution of the trade. While it occurs in all markets, cryptocurrencies’ volatility can make slippage a serious problem.

The O3 Swap aggregators run through DEXs on several major DeFi blockchains including 

Ethereum-based Uniswap, Curve, and 1inch; the Binance Smart Chain’s PancakeSwap, DODO, and MDEX; Neo’s Flamingo and Nash; and Huobi Eco Chain’s MDEX and LAVAswap.

What’s Next

O3 Swap will only charge a small fee — about 0.3% — for trades, which should slowly but surely decrease the supply of O3, Powers said. 

Of course, before that, O3 Swap will have to exit the test phase it is currently in, which put a $20 maximum on swaps. That’s set to happen sometime in Q2 or Q3 this year, according to the O3 Swap litepaper. In Q4, the aggregation protocol will deploy on layer-two networks, as will the initial version of a governing DAO.

The O3 token will also have some governance functions, notably voting on changes to the network, Powers said.

The total issuance of O3 is 100 million, with just 10 million allocated in the initial phase to incentivize early launch buyers and reward community supporters. Of the remaining 90%, 60% is reserved for trade mining, as well as the development team, investors, and cooperating institutions on two-year vesting schedules. The remaining 30% is reserved for project development.