InfinitySwap: Can It Take Internet Computer DeFi To The Next Level?
What Is InfinitySwap?
InfinitySwap is an Internet Computer built DeFi platform for swapping, staking, and creating tokens. InfinitySwap was co-founded by Max Chamberlin and Alessandro (Alex) Rietmann with investors including Polychain Capital, Parafi Capital, and Draft Ventures.
InfinitySwap’s goal is to become a leading DeFi platform on the Internet Computer that brings together the Bitcoin and Ethereum blockchain ecosystems for a fast, affordable, and secure token swapping, staking, and creation network. The team’s vision is to be an interoperable platform for swapping tokens from any blockchain ecosystem, with excellent analytics to match.
InfinitySwap is an upcoming platform that’s still in the Testnet phase, which can be accessed by going to the InfinitySwap app.
DeFi and especially multi-purpose DeFi platforms that include exchanges, wallets, staking, lending, borrowing, and swapping are steadily being built and deployed on the Internet Computer. This is a positive sign that despite being deep into a bear market, DeFi makers such as InfinitySwap are continuing to build out investing options for the next DeFi wave to come, with added additions of new token standards and NFT compatibility.
What Features Does The InfinitySwap DeFi Platform Have?
InfinitySwap essentially has four primary features — Pools, Swaps, Tokens, and Assets.
On InfinitySwap’s Pools feature, users can add liquidity to liquidity pools and earn interest on their investments. Liquidity pools are an essential aspect of AMM DEXs because they help provide liquidity to the trading engine so trades execute with lower slippage. Being a liquidity provider (or staking crypto in liquidity pools) is one way crypto investors like to make money — it’s also a passive investment form.
InfinitySwap’s Swap feature, similar to UniSwap and other DEXs, will allow traders and investors to exchange and trade between their favorite cryptocurrencies, including ICP, mainnet Ethereum coins, and other new tokens (IS20) on the Internet Computer. What’s advantageous about this Swap feature is that the trades will execute with lower gas fees than UniSwap, which is famous for being expensive.
In the image below you can see for example the fees for fast transactions on DEXs such as UniSwap, SushiSwap, and Balancer.
InfinitySwap’s transaction fees will be significantly lower than these Ethereum-based platforms. This is due to the difference between the Ethereum and Internet Computer blockchains, which the latter is capable of significantly greater scaling and on-chain transaction speeds.
The other advantage will be the ability to access mainnet ETH tokens and directly integrate with Bitcoin. So InfinitySwap users can swap for tokens outside of the Internet Computer blockchain, which is a feature not able to be done on other blockchain-limited DEXs.
InfinitySwap’s Tokens feature is where users can see the list of available tokens, it’s where users can launch their own IS20 standard tokens, and it’s where they can view the tokens they have on the platform.
InfinitySwap’s token launch feature will be similar to that of launching tokens on PancakeSwap with the added benefit of direct access to liquidity pools, which is crucial for projects looking to raise capital on the Internet Computer.
Here a key feature is InfinitySwap’s efforts to create a new token standard called IS20, which is lacking on the Internet Computer. Token standards such as ERC20 allow for the trading of standardized digital assets or cryptocurrencies on a specific blockchain. InfinitySwap is looking to create a token standard that can be used for tokenization with three pillars/principles in mind — decentralized, safety, and interoperability.
Summary: What Can Traders & Investors Do On InfinitySwap?
Once it launches users will be able to swap coins for governance tokens to participate in governance, they’ll be able to swap for tokens that increase in value (for investing and short-term trading purposes), and they’ll be able to provide liquidity to liquidity pools, they’ll eventually be able to vote on InfinitySwap governance, create new tokens using the IS20 standard (thus creating new business and tokenomic models), and collect NFTs in the platform’s native-built wallet.
What’s Special About InfinitySwap & Its DeFi Ambitions On The Internet Computer?
One of the main innovations that InfinitySwap brings is its improvements and combinations of already built DEXs and AMMs such as UniSwap and Balancer. Moreover, it will have data analytics capabilities, therefore giving it a touch of CoinMarketCap-like features. With these goals, InfinitySwap will be similar to Google for blockchain, making it easy and accessible for traders to invest in new coins by having easily-accessible and transparent information. Once it goes live, the InfinitySwap platform has the potential to become the liquidity hub with the integrations to the Bitcoin and Ethereum blockchains — thus, allowing the Internet Computer access to almost $500 billion dollars in market cap potential.