Decentralized Finance (DeFi) is expanding, with the ecosystem expected to reach $50 billion in total locked value (TVL) by 2023. Those seeking possibly safe and secure choices, on the other hand, provide a variety of items to earn incentives without incurring high expenses.
As the popularity of cryptocurrencies grows, so does the need for various goods that give a competitive advantage in the market. Several decentralized exchanges (DEXs) have formed in recent years, making it a more convenient option for numerous people to swap and sell cryptocurrencies.
The DEX detailed below attempts to deliver the finest experience for its consumers by providing all of the features that rivals may provide but with a flair for perfection. Nomiswap is one of the greatest instances of a DEX that has provided traders with several options.
So, what exactly is Nomiswap? Let’s talk further about this project with Coincu.
What is Nomiswap?
Nomiswap is the market’s first decentralized exchange platform with a binary referral system and the lowest platform transaction costs (0.1%). The exchange now supports just BEP-20 tokens on the Binance Smart Chain network, but multi-chain support is planned in the future. It is a new exchange that has been operational since January 2022.
The DEX is supported by the well-known Nominex-controlled exchange. Both of these systems are tightly connected to one another. Despite its youth, the DEX has already shown notable accomplishments:
Among the honors it has received in its brief history include being named Top 5 BSC DEX by TVL in terms of trading volume and Top 40 DEX in terms of the trading volume. It used to provide a greater APR on staking and farming across all pools than industry leader Pancakeswap.
Nomiswap acts as an automated market maker (AMM), allowing users to trade two tokens on the Binance Smart Chain network. The platform derives liquidity from several liquidity providers who pool their cash. Liquidity providers are compensated with LP tokens, which may be used to farm NMX tokens, the platform’s native cryptocurrency.
The binary referral system and referral ‘trees’ that develop user benefit the more users come to the site are its defining features. A user’s referrals continue to pay off when new users are recommended ‘below’ them by the individuals they bring into the network, resulting in a steady stream of incentives as the platform expands.
Nomiswap, unlike its rivals, is fully embedded in the Nominex ecosystem. The platform is one of the official brokers for prominent cryptocurrency exchange Binance, lending it an additional degree of credibility and allowing it to use both centralized exchanges (CeFi) and decentralized exchanges (DeFi).
In this regard, Nominex and its DEX Nomiswap have established an excellent reputation in the crypto market as a result of their platform, solid trajectory, and relationship with Binance. Nomiswap was built with the goal of establishing a standard for DEX systems, according to the platform’s official Gitbook.
How does it work?
Nomiswap’s connection with the Nominex CeDeFi ecosystem enabled them to provide consumers with a unique assortment of items while charging no fees. The DEX allows users to gain cashback on their trading expenses while also providing liquidity and increasing these incentives as they go through the farming/staking tiers.
If traders and referrals stake or offer liquidity for a token, engage in the platform’s launch pools, or just exchange tokens, the DEX will reward them. The platform’s unique binary referral scheme will allow a user to profit from the group of individuals they onboarded as well as from each of their individual activities.
Users are rewarded for onboarding their friends, relatives, or crypto networks. The benefits are closely related to the transaction size and farming deposit, which means that a user will earn greater rewards for a larger transaction, trading volume, farming deposits, and referrals.
The more transactions and agricultural deposits a user makes, the higher his or her level, and the greater the individual and team incentives and cashback. As a result, a single user may profit from these benefits just by being active on the Nominex and Nomiswap platforms and making use of the referral schemes of these exchanges.
As previously stated, each of these benefits grows as the player advances through the stages. Moreover, revenues generated from trading and supplying liquidity in this ecosystem may be multiplied through DEX’s referral scheme, which includes a utilitarian farming component.
In contrast to competing platforms, a user may gain benefits for referring others who did not register on the DEX using their referral links. In that sense, Nomiswap’s referral benefits are limitless, with only the quantity of NMX produced or the total amount of NMX farmed by a group of users limiting them.
Its methodology, its ability to be paired with other Nomiswap features, and its hybrid operating approach make this Exchange an excellent alternative for active crypto traders.
Nomiswap’s swap interface is simple and straightforward when you choose a currency to swap from the dropdown menu. Unfortunately, since not every pool is paired, there is often no liquidity available for the swap, and there is no way to tell until you manually choose the two tokens you wish to exchange and find out.
There includes an expert mode as well as standard transaction time (normal, fast, instant) and slippage parameters.
There is a visible indication of available cashback, delivered in NMX tokens, that is refilled daily, as well as a clear percentage meter that shows how many rewards are remaining.
You may expect to earn LP tokens for given liquidity, and you can simply stake LP tokens for NMX in the farms, which will be detailed soon. It’s tough to get a sense of the pools that are presently accessible without manually entering couples – however, the UI that shows the anticipated share of the pool is obvious.
Presently, Nomiswap offers approximately 30 distinct agricultural pools. The APRs vary according to the pool. Nonetheless, it is reasonable to conclude that the APR for each pool is now greater than the APR for the identical pool on industry-leading platforms such as Pancakeswap or Uniswap. Since the APR is heavily reliant on the number of pool members, it should be noted that the APR may drop as the number of users increases. At the time of writing, the top three highest-paying pools had an average APR of 25%: GST-USDC, NMX-USDC, and NMX-BUSD.
In terms of stablecoin pools, Nomiswap offers higher APRs than market leader Pancakeswap. For such pairings, the average APR is roughly 11%.
The bonus holder is another important component of Nomiswap. The bonus holder is a reward given for the time spent farming. This incentive is immediately awarded to each user who engages in personal farming in the form of more NMX tokens.
It is distributed to all farmers in proportion to their part of the pool, similar to the NMX distribution concept in personal farming. The sole distinction is that an increasing coefficient is employed to calculate the holder incentive based on the length of continuous cultivation.
What matters is that if the initial staking deposit is manipulated, the cumulative number of days will be adjusted. In the event of unstaking, the cumulative number of days is reset to zero.
As funds are added, the number of accumulated days is updated according to a certain formula. This feature users encourages to keep their NMX tokens, making them more resistant to market volatility. If you hold tokens for 1 year or more, APY can go up to 900%.
Launchpools are ‘simple staking’ pools offered by Nomiswap where users can stake their NMX and receive – in general – more NMX. The current launchpool offers a whopping 93% APY, paid in the NMX token. Over time, more launcpools will be added.
Nomiswap’s Launchpools are simple staking pools where users may stake their NMX and get – in general – additional NMX. The current launchpool pays a phenomenal 66% APY in NMX tokens. More launcpools will be added over time.
The Nomiswap referral scheme consists of a binary affiliate tree, an organizational structure in which new members are put into a tree-like system. Each new member of the referral program has left and right branches, also known as ‘teams.’ The ‘weak’ team is the one with the lowest value.
Each member has two spots on the first level, four spots on the second level, eight spots on the third level, and so on. Every referral program member has a sponsor – the affiliate participant whose referral link was first utilized to begin operations on the platform.
The actions of the own referrals as well as the whole referral team from all persons beneath a user in the referral structure on any level below are rewarded – this idea is known as endless referral levels.
There are two types of referral incentives. Farming and trading rewards are also available.
- Farming benefits for own referrals – 5-10% of the amount of NMX farmed by own referrals, depending on farming level.
- Team farming benefits range from 5-10% of total NMX farmed by the weak team, depending on farming level.
Tokens acquired in launchpools are also used to calculate farming incentives.
- Trading benefits for own referrals – 10-20% of trade expenditures for own referrals, depending on farming level.
- Team trading rewards range from 5-10% of total trade expenditures incurred by the weak team, depending on farming level.
With Nominex and Nomiswap, all referral benefits from paid trading fees are determined based on the total paid trading fees. That implies that before calculating the payout, the algorithm adds up the trading costs paid on both platforms. Nevertheless, rewards for agricultural activities are only available to Nomiswap.
Nominex and Nomiswap’s utility token is NMX. The token is a BEP-20 with a total quantity of 200,000,000.
While trading on Nominex CEX, the NMX token may be used to pay trading costs in NMX at a 50% discount.
For a token swap on the exchange, Nomiswap charges a fee of 0.1%. This is lower than the majority of DeFi’s DEXs. The 0.1% is allocated as follows:
- 0.03% is allocated to liquidity providers.
- 0.07% is utilized to pay the referral program, cashback for trading costs, NMX token burning, and Nomiswap’s earnings.
It’s an egalitarian and user-first fee structure meant to foster system development, and it’s a fantastic location to trade in BEP-20 tokens.
If you utilize the Nominex exchange, Nomiswap is an option DEX since it is wonderful and even sides costs by engaging in engaging users to earn from their own referrals and trading activity on both by embracing both of the Nominex ecosystem. The costs are modest, the UI is simple, and the DEX functions effectively, delivering high APY on several of its staking pools.
The drawback of this DEX is the UI interface, which is quite troublesome for beginner users. So if you are a professional then this platform is worth considering, if not, you need to.
Although the site is still relatively new and growing in popularity, APR percentages will stay high, and trading costs will be kept as low as feasible.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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