What is CrowdSwap?
CrowdSwap is the best-price-routing and aggregation protocol for decentralized finance (DeFi). It aims to reach mass adoption in crypto for every human being and overcome actual problems that reside from a fast-growing business space like DeFi.
CrowdSwap concentrates on providing the best prices for tokens across the DeFi space cross-chain.
CrowdSwap aims to get even people involved into the great crypto sphere. People who are already interested but can’t afford the high transaction fees.
What is Best Price Routing?
Best Price Routing (BPR) is the most important part of the software of CrowdSwap. It programming code find the best prices in the crypto space taking fees and transaction fees of the different blockchains into account.BPR is limited only by the integration of DEXes on different blockchain. You can find a list of integrated DEXes in “DEX integration list”.
What is the CrowdSwap beta phase?
Now that we’ve tested the CrowdSwap app extensively on our QA systems, it’s time for the launch. Since we want to make sure that CrowdSwap is available for you at any time and market phase, we will gain experience in user experience and usability, performance, and load during this beta phase.
We are aware that software is never wholly bug-free. And we are constantly improving our products. Thereby we depend on your feedback. Use our Social Media channels to submit your suggestions for improvements.
In the beta phase, the apps Search, and Swap are ready for you. We will start with the Ethereum network. But also, the search for the best price on Binance Smart Chain will not be long in coming. Other features will be released gradually.
However, we want to show our main competencies right from the start. These are:
- Finding the best price
- Transparency regarding all costs around the swap
- User-friendliness and usability
For finding the best price, CrowdSwap takes a fee calculated from the price advantage over other DEXes. In the beta phase, this fee is displayed in the user interface but not charged.
How do you calculate “you save”?
CrowdSwap always takes into account all costs associated with a swap. In the “you save” display, we show the savings between the current DEX and the second best.
Very specifically, there are always two potential savings. First, you can immediately see that the total cost of the swaps compared is different. However, this is not always the entire saving. It is often the case that the cheaper DEX also delivers more tokens than the comparison option. CrowdSwap also evaluates these additional tokens based on the price of the worse DEX.
This is how the savings are calculated:
The number of tokens of DEX (best) multiplied by the price of DEX (2nd) minus the total cost of DEX (best).
Since the savings are displayed in US dollars, it should be mentioned here that an external reference price is used before the search to determine the number of input tokens (first token in the search). Any other mention in US dollars is based on this reference.
Why are prices per token so high?
CrowdSwap continuously calculates with total costs. This includes the incidental swap costs, which each user definitely has to pay. Therefore, the costs of the DEXes do not pay for everything by far. Especially on the Ethereum network, transaction costs weigh down the price per token. CrowdSwap attaches great importance to transparency and always displays prices, including all incidental expenses.
The incidental costs (transaction costs) are also not estimated. For this purpose, CrowdSwap uses its own on-chain data analysis. Gas volumes of the exact swap routing are used to calculate transaction costs based on current gas costs. This approach provides very accurate results in terms of total cost per swap.
Why does the transaction run so long (mobile)?
It can happen that transactions take a few minutes before they are recorded in the blockchain. Therefore, looking at the transaction via the wallet is always a solution.
On some devices in the mobile environment, we have noticed that wallets do not report the completion of transactions. This can lead to no success message of the swap appearing in CrowdSwap. This is a known problem of the wallet manufacturer Metamask.
Solution: In the wallet (Metamask), however, it is possible to track whether the transaction was successfully completed via the browser view.
To rule this out, we recommend using Crowdswap on the desktop.
What is a cryptocurrency?
Cryptocurrencies are digital means of payment based on blockchain technology and smart contracts.
What types of cryptocurrencies are there?
1. Bitcoin ist die erste Kryptrowährung.
2. Altcoins (Alternative Coins, stehen für heutige Coins): Sind immer dezentral und können nicht gestoppt werden. Sie haben einen Nutzen, können aufeinander aufbauen und mit Ethereum können Dapps entwickelt werden.
What are the advantages of cryptocurrencies?
1. It is not a bank with its fees in the middle. Transactions are faster because there is no need for a “trust” bank.
2.Aaccessible worldwide, you only need a computer and internet, also suitable for people without a bank account.
3. 100% transparent, drink transactions are traceable, cannot be manipulated, cannot be changed.
What are the risks of cryptocurrencies?
Crypto market is unregulated and requires high self-responsibility. No one is liable, prices can rise and fall quickly, fraud and high losses are possible.
What are wallets and what do you need them for?
You need a wallet to own and trade cryptocurrencies. There are paper wallets, mobile wallets (e.g. Trustwallet), desktop wallets (e.g. Atomic Wallet) and hardware wallets (Ledger, Trezor).
The most commonly used wallet on the Ethereum network is metamask, which is also the default on CrowdSwap.
What does DeFi mean exactly?
“Decentralised financial services” or “decentralised finance”, or “DeFi” for short, is one of the fastest and exponentially growing sectors in the “crypto” field and is considered a possible future of global finance. It describes all applications and organisations that offer financial services based on decentralised blockchain technology.
The concept of decentralisation and “open finance” contrasts with traditional financial services that have evolved historically and are usually centrally organised, i.e. controlled by a single entity such as a central bank or financial institution. The hope in DeFi is that the disadvantages of centralisation (e.g. formation of monopolies, bureaucracy) can be eliminated.
Technically, decentralisation is possible thanks to so-called smart contracts, in which code rules are automatically implemented and the transaction data is stored in a so-called “distributed ledger”. This way, no single actor can ever gain control over transactions, preventing corruption.
DeFi companies offer the following services, among others, mostly based on Ethereum: Lending and accepting loans, stablecoins issuance, payments and insurance directly among market participants.
What Is a Decentralized Exchange (DEX)?
Decentralized exchanges or DEXs are autonomous decentralized applications (DApps) that allow cryptocurrency buyers or sellers to trade without having to give up control over their funds to any intermediary or custodian.
This type of infrastructure is entirely different from centralized exchanges where users hand over their crypto assets to the exchange, which acts as a custodian and essentially issues IOUs for users to trade with on the platform.
DEXs were initially conceptualized to eliminate the need for any authority to supervise and approve trades made within a particular exchange. Through the help of smart contracts, DEXs operate automated order books (or automated market makers) and trades. This makes them “truly peer-to-peer.”
Decentralized exchanges are exchanges where transactions take place directly between market participants without a third party, such as banks, approving transactions. Person A trades directly with person B and the contract is made directly between the two. UniSwap, FalconSwap, SnowSWap and SushiSwap, for example, are decentralized exchanges based on the Ethereum Natzwerk. PancakeSwap, for example, is based on the Binance Coin network.
How Does a Decentralized Exchange (DEX) work?
There are various types of DEXs, that can be divided in these categories:
On-Chain Order Books
In a DEX that uses on-chain order books, there are network nodes that are assigned to maintain the record of all orders. It also requires the operation of miners to confirm each transaction.
See here a list of DEXes: Die Rangliste der besten dezentralen Kryptowährungsbörsen | CoinMarketCap
Where can you search and find good coins?
Coinmarketcap and Coingecko are popular platforms to discover coins.
What are crypto tokens and why do they exist?
Crypto tokens are a type of cryptocurrency that represent an asset or specific use and reside on their blockchain. Created through an initial coin offering (ICO), crypto tokens are often used to raise funds for crowd sales.
How do tokens work in Blockchain?
Cryptographic tokens represent a set of rules, encoded in a smart contract – the token contract. Every token belongs to a blockchain address. These tokens are accessible with a dedicated wallet so ware that communicates with the blockchain and manages the public-private key pair related to the blockchain address.
What are smart contracts?
Smart contracts are lines of code that are stored on a blockchain and automatically execute when predetermined terms and conditions are met or they are called from a decentralized application. At the most basic level, they are programs that run as they’ve been set up to run by the people who developed them.
What are ,,gas fees" in the crypto space and why are they needed?
Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. “Gas limit” refers to the maximum amount of gas (or energy) that you’re willing to spend on a particular transaction.
What is a token swap?
CrowdSwap is a aggregation protocol in the decentralized finance space aiming to increase mass adoption for everybody and to overcome actual problems that reside from a fast growing business space like DeFi. CrowdSwap concetrates on fulfilling the following 3 major issues like
(1) there are high gas fees on the ethereum netowrk at the moment,
(2) decreasing the barrier to step into DeFi for everybody and
(3) to provide the best prices for tokens across the DeFi space chainlessly. CrowdSwap aims to get even more people involved into the amazing sphere. People who are are already interested but can´t afford the high transaction fees. People who are already in the space but lack the knowledge needed to transfer tokens across the network or network borders to other chains for better. People who want to start trading but don´t own crypto currencies yet. And people who aren´t allowed to sign up to centralized exchanges, CrowsSwap is the pace to start.
Where can I find new coins or coins that are newly issued in IDOs/ICOs?
Polkastarter is one of the best-known platforms for IDOs/ICOs, where early-stage coins can be discovered. But FalconSwap, DuckDao.io or ICODROPS are platforms where you can find new projects.
What is AMM?
Automated Market Makers (AMM)
Automated market makers exploded in popularity in 2020, driving much of the DeFi boom, and are used by popular DEX platforms like Uniswap, SushiSwap and Kyber Network. AMMs have no need for order books. Instead, they utilize smart contracts to form liquidity pools that automatically execute trades based on certain parameters.