Warpswap Documentation
  • Start
    • Warpswap Overview
    • Quick Start
  • Overview
    • The Warpswap Protocol
    • The Warpswap Suite
    • Our Mission
  • Contracts
    • Overview
    • Solidity Documentation
      • ABI Reference
    • Sample Warpswap-compatible Token Contracts
  • $WARP Token
    • Tokenomics
  • Ecosystem
    • Roadmap
    • Contacts and Links
      • Volunteer Program
Powered by GitBook
On this page
  • Introduction
  • A Familiar Feel
  • The Power of Warpswap
  1. Overview

The Warpswap Protocol

PreviousQuick StartNextThe Warpswap Suite

Last updated 9 months ago

Introduction

The Warpswap protocol is a system enabling its users to swap ERC-20 tokens on the Ethereum blockchain in the (currently) cheapest way possible. The system consists of a pair of persistent and forever immutable smart contracts living on the blockchain, designed with security, decentralization, ease of use and absolute fee reduction in mind. In addition, this system employs a general paradigm which is designed to benefit both traders and liquidity providers equally and thus to provide equal care for all aspects of the market making pipeline. Lastly, this system supports all currently existing as well as future tokens! No adjustments needed from the developer's side as all ERC-20 tokens enjoy native support by Warpswap :)

A Familiar Feel

The behavior of the Warpswap protocol is designed to mimic, where possible, concepts from other automatic market makers such as . As such, all its core price calculations are fully consistent with the constant product x*y=k which was pioneerered by Uniswap and has been involved in hundreds of millions of trades on Uniswap v2, guaranteeing traders a fair price.

Moreover, Warpswap rewards its liquidity providers across all trading pairs in a way consistent with the implementation of Uniswap v3, implying that a liquidity provider who provided 50% of all the liquidity in a pair is entitled to receive 50% of the liquidity fees earned by this pair.

We believe that this unique blend results in the best possible outcomes for both traders and liquidity providers on Warpswap, simultaneously yielding low slippage rates and high capital yields. Furthermore, all the infrastructure relying on other automated market makers will have an easy time switching to Warpswap given its myriad of identical features and event architecture.

The Power of Warpswap

Warpswap's peak position among decentralized exchanges becomes evident when comparing the transaction gas fees using its protocol to its primary competitor, Uniswap. Below this text, evidence is presented for the drastic gas reduction achieved by adding liquidity and swapping on Warpswap instead of on Uniswap:

  • The gas cost of adding liquidity can be reduced by as much as 90.0% as compared to Uniswap v2 and even more when compared to Uniswap v3. Given the current dollar value of ETH and the current gas rates, the dollar value saved amounts to $40,- USD saved. Given the average dollar value of ETH and the average gas rates over 2023, this cost would amount to over $400,- USD.

  • The gas cost of swaps can be reduced by as much as 60.0% as compared to Uniswap v2. Given the current dollar value of ETH and the current gas rates, the dollar value saved amounts to $5,- USD saved per trade! Given the average dollar value of ETH and the average gas rates over 2023, this cost would amount to over $50,- USD.

Uniswap
formula