O3 Swap Token (O3) is an application token issued by O3 Swap. It is an important mediator to promote the development of the O3 Swap network. Based on the economic model of O3 Swap, all participants and developers are encouraged to invest in the maintenance of the overall ecological network through the community governance of tokens.

Summary

O3 Swap is a proprietary cross-chain aggregation protocol built by O3 Labs. The mission of O3 Swap is to provide consumers access to cryptocurrency-based, financial services, allowing them to exchange, or ‘swap’, various digital assets within their O3 Wallet. The benefits of this design can be attributed to the high level of safety and security that is inherent to the decentralized model of asset storage and protection. The platform also provides cross-chain swaps to conduct exchange settlements without regard to the limitations of a typical isolated Blockchain network. The term cross-chain derives itself from the fact that the exchange is executed after traveling across two or more separate blockchain networks. With a cross-chain swap, the initial asset and the target asset are deployed on two isolated Blockchains that otherwise are non-communicative. In light of the advanced development of decentralized financial protocols (DeFi) and the increasingly mature markets for lending, exchange, derivatives, etc., The O3 Swap protocol, in cooperation with its associated decentralized wallet software, provides a one-stop aggregation & exchange platform for consumers and offers developers access to an open, distributed, limitless, and secure — trading environment

Features

Permissionless, Anti-censorship: In any environment, anyone can access O3 Swap without permission and KYC review.
Liquidity Aggregation: Users can exchange assets at the lowest rate and via the most efficient trading route — this is achieved by connecting their own decentralized wallets.
Cross-chain Exchange: We implement all proven and possible cross-chain solutions onto the market with our aggregation protocol. With this, we can achieve cross-chain transactions. Users are able to freely exchange multi-chain assets with one click.
Community Drive: Based on the O3 Swap Token's issuance and economic model, decentralized governance and community-driven development will be realized.

Functional Modules

Layer Structure

O3 Swap uses a four-layer structure to ensure the integrity and symmetry of the information in the liquid market. As a result, the consumer has a safe and efficient trading environment.

Network Layer: As the basis of the O3 Swap cross-chain protocol, we will aggregate high-quality public chains and ecological chain systems in the market. This includes Ethereum, Binance Smart Chain, Neo, Huobi ECO Chain, and creditworthy layer 2 projects, to provide cross-chain trading.
Market Liquidity: The aggregation of different liquidity sources through O3 Swap, allows the platform to identify and recommend the best exchange quote for users.
Settlement Layer: Based on the private key signature authorization, the transaction settlement is completed through the smart contract. Additionally, cross-chain protocols and cross-chain pools will help users complete cross-chain asset exchanges and settlements.
Application Layer: Provide developers with a complete service API to integrate into different applications, and provide users with a convenient and user-friendly operating platform.

System Design

The main functional modules of O3 Swap include the exchange aggregators (O3 Aggregator) and cross-chain pool (O3 Hub). O3 Aggregators are deployed on mainstream blockchains and help users find the most effective trading rates and routes in the corresponding network. O3 Hub provides users with cross-chain transaction services based on PolyNetwork and supports users to add liquidity by a single token from different chains to earn income from cross-chain transaction fees and O3 rewards.

O3 Aggregator

System roles are divided into the following categories:

Users: Users connect to O3 Swap for transacting with their crypto wallet.
O3 Relayer: The agent of the user and the contract on the chain. Depending on the different users’ needs, O3 relayer can find the best exchange rate through O3 Swap.
Swap: As the core exchange mechanism of the system, it receives users’ requests from the relayer and achieves liquidity settlement by smart contracts.
Aggregator: Aggregate liquidity sources across blockchains and determine the best trading rates and routes for users.
Cross-chain Pool: The cross-chain asset transaction pool built based on the PolyNetwork protocol realizes the free exchange of assets across chains.
Liquidity Providers: Mainly including the following liquidity sources:
Automated market makers of on-chain algorithms from different DEXs.
Lp market maker who provides liquidity for Cross-chain Pool.

O3 Hub

O3 Hub is composed of a cross-chain asset pool such as a stablecoin pool and cross-chain protocol based on Poly Network. With the StableSwap invariant from Curve, the performance of the algorithm was evaluated and optimized assuming providing liquidity for stablecoin. This sort of automated liquidity provider for stablecoin offers very low price slippage and extremely reduces the impermanent loss. On the implementation side, traders can exchange mainstream assets across blockchains simply; Liquidity providers can deposit single or multiple assets to the cross-chain pool and stake the LP shares to earn O3 rewards. The advantage of this design is allowing users to exchange cross-chain assets without asset deposit and withdrawal compared to the traditional Hub mechanism, which greatly reduces the threshold for user operations/transactions.

Cross-chain Transaction Routing

For example, in the centralized route, the trading route of BNB on Metamask to HUSD on MDEX is a complicated and cumbersome process. Traders need to deposit the coin to the centralized exchange and execute the transaction twice with KYC & 2-step verification, finally withdrawing it to the decentralized wallet and DEX. In the O3 decentralized route, we provide the one-step trading experience via our aggregators and cross-chain pool, allowing traders to simply exchange multi-chain assets within their wallets. The whole process is no account limit and is permissionless.

O3 Swap O3

Historical Data for O3 Swap