Understand the cross-chain swap aggregator XY Finance in 5 MINUTES

Press release

XY Finance has developed an efficient and user-friendly cross-chain swap for Decentralized Liquidity (DeFi) & Metaverse and a single token via X Swap and Y Pool. Among other things, X Swap serves the cross-chain needs between several user chains, and the newly introduced Y-Pool can reimburse swap fees and token rewards to liquidity providers.

With the coexistence of multiple chains and the explosion of DeFi + NFT + GameFi, cross-chain exchange aggregators have become an essential and vital infrastructure across the cryptocurrency market and the search for a more efficient and convenient cross-chain exchange never stops.

XY Finance, a cross-chain swap aggregator for DeFi & Metaverse, aims to offer users efficient cross-chain swaps at the best prices. It recently completed a $ 12 million round of funding from major crypto exchanges, venture funds, research firms, GameFi Decentralized Autonomous Organizations (DAOs) and game developers, etc.

XY Finance operating model

The advantage of XY Finance results from the combination of two components, namely X Swap and Y Pool, which is also the operating model of XY Finance. Among other things, X Swap will provide cross-chain swap and transfer services to users, and Y Pool will be used to motivate users to provide liquidity. In return, liquidity providers can receive both swap fees and governance token rewards. Currently, X Swap supports cross-chain swaps on Ethereum, BSC, Polygon and Fantom. The newly launched Y-Pool has opened up liquidity services to users.

Put simply, X Swap finds the optimal cross-chain and transaction path for users, supports cross-chain swaps between any assets, and allows users to swap assets in a specific chain or switch between two strings. For example, if you wanted to swap Uniswap (UNI) on Ethereum in BUSD on BSC, you would first swap UNI in bridgeable assets (like Tether (USDT), USD Coin (USDC) etc.) on Ethereum and convert it to BSC via Y Pool or Bridge Partners (AnySwap, O3 Swap and Multichain.xyz) before finally converting to BUSD.

While this process may seem complicated at first glance, X Swap only requires the user to initiate a transaction on the first chain, and subsequent swaps and cross-chain processes are done automatically by the protocol, making them simple.

Currently, X Swap mainly uses liquidity from DEXs such as Uniswap, SushiSwap and 1inch, while the newly introduced Y-Pool allows users to provide liquidity directly to XY Finance so they can also earn fee swaps and XY token rewards.

The biggest advantage of Y Pool is that one pool can manage the liquidity of the same asset across multiple chains. For example, the USDT Y pool pool may receive USDT assets from various chains like ERC-20 USDT, BEP-20 USDT, Polygon USDT, etc., which are used to provide liquidity for the X swap. In addition, to balance the liquidity in the Y pool, XY Finance proposes a rebalancing incentive mechanism that rewards users of XY tokens for helping to rebalance assets in different chains.

XY Finance Tokennomics

With regard to XY financial tokens in the Y pool, in addition to the XY liquidity premiums, the founding team also assigns 80% of the swap fees from X Swap to liquidity providers and a further 20% to the DAO vault. Also from the fees allocated to the DAO vault and license revenue from GalaXY Kats (an NFT + GameFi project by XY Finance), 60% of which is used for token redemption. XY tokens from the secondary market and 50% of the redeemed XY tokens will be burned. This helps XY form a virtuous cycle.

XY Finance’s native token, XY, is provided in every chain supported by the protocol. There will be a total of 100 million tokens. In addition, XY Finance will carry out a first DEX offer (IDO) on the Dong platform on December 9th.

After XY has been locked in the staking pool, XYers can obtain admin rights to propose, coordinate or change system parameters in real time, as well as start new Y pools, etc. Swap fees are assigned to XY Finance and XY DAO as security funds.

Summary

Overall, XY Finance has built an efficient and easy-to-use cross-chain swap aggregator and single-token liquidity supply model through X-swap and Y-pool, which not only satisfy the demand of cross-chain users across multiple chains, but Liquidity providers also help generate income. The joint consolidation of the buyback and burn mechanism and its NFT GalaXY Kats project will add further strengths to the project. Let’s see if XY Finance is the dark horse in cross-chain swaps.

You can find more information on our website and on social media:

https://medium.com/@xyfinance

https://docs.xy.finance/

https://xy.finance/

https://t.me/xyfinance

https://discord.gg/HWwMHRUH

https://twitter.com/xyfinance