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Quantum swap
What is Quantum swap?
The Quantum Swap Market, is basically a decentralized OTC-market where trading parties do not need to rely on a third party and where any Fusion asset or TL Fusion asset can be traded in quite advanced ways. The word "swap" is used for so many things in the crypto space that it gets quite confusing. Quantum Swaps have very little in common with the swaps happening on AMM DEXes, they are more akin to Atomic Swaps but is much less limited than these.
Quantum Swaps can:
1. Swap multiple assets types in a single tx.
2. Allow for partial fills according to the rules set by the swap maker.
3. Work for both TL assets and "full" assets
4. Be handled in private, or posted on the open "swap market"
What are the problems?
1. The first problem as was hinted originally, is that the swap market is limited to Fusion assets, but Fusion assets have no real market value (apart from FSN). Thus the current swap market should mostly be considered a demo.
2. There is no wallet or app that properly handles the swap market in a good way. Though the functionalities have all been built into https://www.myfusionwallet.com/ it more often than not, has issues, especially in attempting to be a maker of swaps. https://dopamineapp.com/ also supports the Swap market, but only as a taker and not as maker.
3. The offers that do exist tend to be scams set to try to trick new users into taking bad TL FSN deals (like luring you into giving away your time value for 1000 years, without realizing it).
How can these problems be solved?
1. Once FRC20s have support for TL and QS and can be made part of the swap market and AnySwap has more automated bridging established, basically any cryptocurrency could be brought into Fusion by anyone and be made available on the swap market. This will be espcially useful for smaller cryptocurrencies that have poor liquidity where OTC deals is a more efficient way of exchange without losing value (or very huge deals for larger cryptocurrencies, where the same problem arises). Adding NFT support on the swap market would further the use-case even more, making it a deal-based trading spot for every type of crypto-asset.
3. This part is a tougher cookie to solve, and I think the app to properly build in a function to filter out "bad offers" will become the most used solution. Right now this feels a bit advanced to speculate about. Step 1 is to truly get the swap market going with some real assets. So early users will likely still need to beware of a multitude of scams.
Summary
The Swap market coming to life, is a development likely to happen in 2021 and with it should also come a good reason to want to move and trade various crypto-assets to Fusion. Because as crazy it may seem, there is in fact currently no other really good or safe way to handle decentralized OTC-trading for cryptocurrencies.
Last modified 1yr ago