Introducing PoseiSwap: The New Decentralized Exchange (DEX) on Nautilus Chain
Decentralized exchanges (DEX) are currently too expensive, non-anonymous, and not regulatory compliant for individuals looking to take advantage of the financial platforms in the decentralized finance (DeFi) world.
Despite the fact that DeFi and its DEXs have gained traction in recent years as a viable alternative to centralized exchanges and traditional finance, these looming issues render current DEXs unsuitable for mass adoption.
PoseiSwap is working to address this from the ground up by offering a fast, private, and compliant way of exchanging coins and tokens on the Web 3.
PoseiSwap is a decentralized exchange protocol that is powered by smart contracts and runs on a Layer 3 blockchain, the Nautilus Chain. The governance of this protocol is maintained by the POSE token.
Current DEX Scenario
DeFi’s decentralized exchanges have undeniably made significant strides toward giving users more access, freedom, and financial control compared to traditional finance and its centralized counterparts.
However, the exponential growth in demand for decentralized trading has brought DeFi to a turning point, particularly in Layer 1 blockchains such as Ethereum, resulting in some issues that even developers are struggling to solve:
- High costs: Trading on a DEX can result in high transaction fees, slippage, and gas, especially if you want your trade to be completed immediately. While DEX transaction fees differ from blockchain gas fees, they are related in the sense that DEX trading fees are still heavily influenced by network congestion and the gas fees required to execute a transaction, thus, the blockchain on which a DEX is running can also be important. Furthermore, if the Layer 1 blockchain becomes too congested, Layer 2 network gas fees may also increase.
- Lack of privacy: While having a transparent and anonymous transaction is one of DeFi’s advantages, it has also become one of its weaknesses as DeFi relies primarily on public ledgers. Although your identity remains disguised, a permanent record is created on the ledger every time you make a transaction on the blockchain. In short, your DEX transactions are easily visible to anyone. This approach presents a challenge for traders who may not want to publicly disclose their trading volume and their strategies.
- Non-compliance: Several regulations for the crypto industry have already been implemented or proposed in various countries in recent years, and more regulations are only expected to be imposed in the future, especially given the government’s interest in addressing consumer protection, making the market more stable, and preventing crimes such as theft and money laundering.
PoseiSwap’s Solutions
PoseiSwap aims to solve the problems of high costs, lack of privacy, and non-compliance that have plagued other decentralized crypto exchanges by being fast, private, and compliant.
Let’s take a closer look at each of these solutions:
Fast — and Affordable
PoseiSwap runs on a Layer 3 blockchain, the Nautilus Chain, which implements a modular rollup chain that starts with over 2,000 TPS — many times more than other EVM chains. That number is expected to skyrocket as Nautilus developers and PoseiSwap take advantage of Nautilus’ modular nature to create an app-specific rollup.
Private
PoseiSwap aims to address privacy concerns by allowing users to trade using Nautilus Chain’s upcoming zk-tech. Traders will be able to swap and profit without having to signal their next move. This is a significant advantage for anyone who wants more privacy and protection in their trades.
Compliant
PoseiSwap aims to be compliant with regulations by having a permissions pool of assets and an OFAC-compliant module. PoseiSwap will give all users a safe place to trade with confidence and without fear of upcoming regulations. This will be essential as licensing and regulations start to come into play in the DeFi space.
Who are the users?
Users looking to swap or exchange tokens, NFTs, and other tokenized real-world assets
Users can currently use PoseiSwap to swap and exchange tokens in a cheap, efficient, more private, and compliant manner. They will eventually be able to trade tokenized real-world assets and NFTs on the platform (to be announced).
Liquidity providers
DEXs are well-known for their reliance on liquidity pools. These pools provide the funds to make the swapping and exchanging of coins and tokens possible. Users seeking passive income can participate by providing liquidity by selecting a pair of tokens of equal value and storing them in a smart contract known as a liquidity pool. By doing this, they will receive 0.17% of all the PoseiSwap transactions using the specific pool they have chosen.
Products and Services
PoseiSwap currently offers swapping and liquidity providing. However, PoseiSwap is more than just a decentralized exchange; it is a gateway to extending DeFi’s reach from Web3 to the real world. PoseiSwap intends to go further by integrating blockchain technology into traditional finance (TradFi) systems.
By 2024, PoseiSwap plans to allow the trading of real-world assets on the DEX. This includes equities, bonds, and physical assets that have been tokenized, in addition to fungible tokens, NFTs, and other digital assets. This move will bridge the gap between traditional finance and blockchain, creating a new era of financial possibilities.
Stay tuned — PoseiSwap
PoseiSwap is a new decentralized exchange that aims to make DeFi more accessible to everyone by addressing the key issues that existing DEXs face, namely speed, privacy, and compliance.
The Nautilus Chain is the ideal blockchain partner for the platform’s scalability in dealing with a high volume of transactions, while the upcoming zk-tech will provide traders with the privacy they need to protect their identities. As a result, users can benefit from lightning-fast transactions and lower fees.
This move is a testament to PoseiSwap’s commitment to mass adoption and catering to the evolving needs of the DeFi space and blockchain networks.
