Nikaswap is a newly launched decentralized digital currency exchange that has gained a lot of attention in the market today. Below, Blocktienao.com will help you better understand the detailed information about this exchange, from products to how to trade and how to be effective.
What is Nikaswap?
Nikaswap is a decentralized digital currency exchange, operating under the automated market making mechanism of the Binance Smart Chain ecosystem. Currently, Nikaswap exchange is where BEP20 standard token exchange activities (Binance Smart Chain’s token standard) take place. However, the project aims to be able to exchange tokens on a variety of other ecosystems such as (Ethereum, Abitrum, Fantom, Polygon, Avalanche,…)
Basically, Nikaswap floor will have 2 types of users including:
- Liquidity Providers: People who contribute their assets to the Pool.
- Traders: People who Swap assets back and forth in the Pool according to the algorithm predetermined in the smart contract (Smart Contract). This is one of the differences of Nikaswap compared to other exchanges that follow the order book mechanism.
The exchange appeared in September 2023, although it is a new decentralized exchange (DEX), it has made a good impression on the community by volume, frequency of transactions and value-oriented products. use, long-term future of the project. To explain in detail for those of you who don’t understand, AMM – the automatic market-making mechanism of the Binance Smart Chain ecosystem being used by Nikaswap is:
- This is a system that helps buy/sell orders to be matched without going through the order book. Basically, users will contribute assets to the pool (Pool), the orders will be matched immediately – the price will be adjusted according to the predefined formula of the Smart Contract.
What are the featured products of the Nikaswap decentralized exchange?
After learning about the working mechanism of the Nikaswap exchange, we will move on to the outstanding products of the project. In addition to popular products on other exchanges such as Trade, Yield Farming, Staking Pools, Lottery, Voting, etc. Nikaswap also has a very interesting product that helps bring a lot of value to users not only profit but also connection to the community is Referral Staking.
Trade – Nikaswap works based on AMM . mechanism
Nikaswap owns a user-friendly interface, simple operation. You will be allowed to trade BEP20 tokens on the platform, as well as the BSC network. Trade is trading on Nikaswap.
How to trade on Nikaswap: Trades do not need to place buy and sell orders and use Liquidity Pool to Swap tokens, everything is done automatically according to smart contracts. The exchange provides Liquidity Pool to create liquidity for other users. All activities take place according to the floor’s automatic algorithm, not affected by third parties.
- It can be said that Nikaswap is a paradise for long-term investors who want to Hold coins in their wallets. Convenient and time-saving – you only need to Swap once and the money will return to your wallet, no need to make another transaction.
- No need to transfer to the exchange, investors can withdraw from one wallet to another when needed.
- Providing a higher level of security than centralized exchanges, users have full control over assets without going through a third party. Thus reducing the risk of hacking and theft.
- Low transaction fees
- Overall, Nikaswap helps you trade more conveniently and economically. Your job is just to analyze the market and use your knowledge to Swap and make profits.
Yield Farming
This is a product where participants offer their cryptocurrency to create a new amount of digital currency or to earn interest, profit percentage or reward tokens from their activity. Currently, Nikaswap has all 29 liquidity tools, you can easily send FLIP Token to create Yield Farming and generate $NKS. Every $NKS generated is the reward divided in the Pool (pool or mine).
Each Pool will have a different time and amount of $NKS and depend on the amount of people sending tokens into the Pool. The more $NKS price increases, the investor will receive a corresponding % profit and of course will bear the risk if $NKS decreases.
Staking Pools
Users deposit or “staking” their tokens into a common fund with the goal of earning profits or rewards from participating in the blockchain network and supporting its validation and security. This pool of funds is typically managed by an automated system and is used to perform operations within the network, such as transaction security or consensus.
This is basically where new projects can promote themselves to the Nikaswap trading community. The project side will distribute an amount of Tokens to NKS Staking Holder Pools:
- It could be Core chosen by the Nikaswap team.
- Or chosen by the user community.
If the project you choose wins, it will be on the list of Swap, Token price,… from which you will receive profit for yourself. Many investors choose to participate in staking pools because of the opportunity to receive compound interest thanks to coins from new projects. Although this is a form that brings good profits to participating investors. However, you also need to be equipped with the necessary knowledge and skills to prevent risks.
Lottery
Reputable lottery form on Nikaswap. This is a product that will be launched in the near future. If you are interested, you can read more detailed information about the product here.
Voting
At Voting, the community can vote and propose ideas for a cryptocurrency project to be launched. There are 2 types of proposals:
- Core – Nikaswap proposal will be implemented upon community acceptance.
- Community – community proposal, made by the participants themselves. If this proposal has strong support, the Nikaswap team will upgrade to Core.
Referral Staking
The product helps Nikaswap’s user community increase connectivity along with profits. Basically, you can receive additional profits by inviting friends or other users to participate in Staking on Nikaswap.
Instructions for trading on Nikaswap
To trade on Nikaswap in particular, the decentralized exchanges of Smart Binance Chain users need to have BNB coins as a fee. BNB coins can be purchased directly on Binance or other exchanges. Then transfer money to a reputable e-wallet and link to Nikaswap exchange and you’re done.
You can follow their social media pages for more project updates: https://twitter.com/NikaSwapChannel.