StreamSwap, a decentralized exchange protocol built on the Cosmos ecosystem, has launched on Osmosis, offering time-based token swaps with fair and transparent price discovery.
According to the team, the protocol is developed using CosmWasm smart contracts and is being utilized initially for community-driven token launches, enabling fair price discovery for the token being streamed. The protocol is built for token swaps, allowing users to trade tokens across different blockchains using an automated market maker (AMM) model.
Streams can be created by DAOs, communities, or users, with tokens being locked to stream out and a token being set to stream in. Streams have two phases: Bootstrapping Phase and Streaming Phase. During the Bootstrapping Phase, subscribers can subscribe to the stream by depositing tokens being streamed in and receive shares proportionately. During the Streaming Phase, tokens start getting swapped and are streamed at each other.
The final price of the tokens being streamed out is determined by the total tokens streamed in during the Streaming Phase, enabling community-driven price discovery. Once the Streaming Phase ends, subscribers can redeem the tokens streamed out while the tokens that were streamed in are transferred to the stream creator’s treasury.
The first StreamSwap was Omniflix’s Flix token for Osmosis, which saw 640,170 Osmo being swapped for one million Flix. The final price discovery was 1 Flix = 0.64 Osmo or $0.47. The Flix token ran up to $2.60 before coming back down to Earth and $1.69 as of the writing of this article.
A second stream, 500,000 Flix for Atom is happening soon, with over 50,000 Atom deposited and ready to stream. The number of Atom is expected to increase and trying to figure out the price is anyone’s guess, but some feel it will rise based on the last stream.
StreamSwap offers advantages when compared to the Liquidity Bootstrapping Pool used earlier on Osmosis, such as capital efficiency, participation protection, and MEV protection. The StreamSwap DAO is formed by bringing together members of the OmniFlix Community, the Osmosis Community, and independent contributors from within the Cosmos ecosystem.
The StreamSwap team believes that the protocol aims to revolutionize the way token swaps are conducted, offering a decentralized and efficient way for users to trade tokens and earn rewards for providing liquidity to the platform. The platform is expected to attract a wide range of users, including those who are looking for a decentralized and efficient way to trade tokens across different blockchains.
StreamSwap is a significant development in the world of decentralized exchanges, offering a new way for transparent price discovery and community-driven token launches.
