MiniSwap AMA Recap

Let me answer them in three parts. I will first give a brief intro about MiniSwap, then talk about the potential problems and concerns of Uniswap, and finally how Miniswap is better than the existing ones

MiniSwap is a decentralised exchange (DEX) platform. It aims at enabling a connected network of DeFi ecosystems. MiniSwap provides a decentralised platform for exercising financial products across different blockchain eco-systems. The main challenges MiniSwap aims to address are sustainability and interconnected ecosystems.

Now, for the potential problems and concerns of Uniswap, I would like to talk about two aspects. The first one is that Uniswap lacks of quality control for the tokens available on Uniswap. That is, any token, no matter they are a scam or not, can become available for trading on Uniswap. This would lead to risks for users and investers.

The second problem is the sustainability. Uniswap leverages liquidity mining. Roughly speaking, it rewards liquidity provider rather than the trader. This may result in the lose of liveness (so sustainability) of the system.

As mentioned in the first point, Uniswap lacks of quality control of the tokens. So, once there is a system that provides a better user experience with better trading environment (including the quality of tokens), traders would go to the new system as they have no incentive to stay with Uniswap. This will reduce the total amount of reward to the liquidity provider. Thus, liquidity providers would follow the traders to the new system. Thus, there will be very limited number of traders and liquidity providers in the Uniswap and it will eventually die.

Now, lets talk about the advantage of Miniswap.

There are two aspects, amoung many, I would like to particularly talk about. First, the MINI token has its intrinsic value. The intrinsic value is vital to any blockchain ecosystem. MINI token will be leveraged to empower society management, global price oracle (for cross-chain communication), and to enable some other DeFi services.

There are two aspects, amoung many, I would like to particularly talk about. First, the MINI token has its intrinsic value. The intrinsic value is vital to any blockchain ecosystem. MINI token will be leveraged to empower society management, global price oracle (for cross-chain communication), and to enable some other DeFi services.

This is also related to the sustainability, which is one of the key challenges for DeFi protocols. Sustaining the long-term incentive and operation of a DeFi protocol is in particularly challenging. When the incentive mechanism provides tokens as reward to its participants, the intrinsic value of the token itself becomes the key factor for providing sustainability. MiniSwap introduces voting power as the first value (in a queue) of the MINI tokens, providing a transparent and accountable decentralised management service.

With this transparent and accountable decentralised management service, we will be able to provide a good auditing and managing process to improve the quality of products available on the miniswap.

To furtuer improce the sustainability, Miniswap also introduces the hybrid sustainable mining model. It would also help to bootstrap the miniswap ecosystem. For the bootstrapping process of a DEX, it is relatively easy to provide liquidity. However, attracting more traders are difficult. That is why Miniswap uses trans-fee-mining to bootstrap the system. Once the system is bootstrapped, we will reduce the amount of reward to the traders (according to our game theoretical analysis) to make it stable. However, traders will still gain a better revenue than in other platforms.

Now, as we solved the problem of attracting traders, the liqudity provides will follow the traders as we have a higher trading volume and the liqudity provides would gain more profit. This makes the ecosystem sustainable.