The DeFi sector continues to gain regulatory attention. Many government agencies worldwide have begun discussing the legality of their financial products.
Furthermore, decentralised exchanges continue to reward cryptocurrency holders with ways to earn passive income through staking or yield farming. Of course, token users continue to play crypto gambling games on the best crypto casino.
The XDC network specialises in enterprise blockchain applications and tools. And a new project, the XSwap protocol, promises to bring DeFi to that ecosystem.
Let us look at the XSwap Protocol, its native token (XSP crypto), technology, and relevant features.
What Is XSP Crypto?
XSwap is a decentralised exchange deployed on the XinFin blockchain network. Its native token, XSP, allows users to earn rewards by staking and yield farming. Users can swap XSP for other XRC-20 tokens on the XinFin (XDC) network. It also employs an Automated Market Maker (AMM) to balance token prices on the exchange. It relies on liquidity providers and has liquidity pools for XSP holders.
XSwap’s vision is to provide a platform for new XDC projects to list their tokens and gain liquidity through the exchange. It will also support these projects during their developmental stages.
Additionally, the XSwap team plans to develop an android app for the XSP protocol and all other XDC dApps.
On October 30th, the XSwap team distributed 40 000 000 XSP for a Bounty Campaign. They rewarded participants with XSP for promoting the token on social media and blogs.
Lastly, the team launched a private token sale between October and November for early investors. It also launched a public sale between November 3rd and 18th.
The Team
XSwap has a small core team. Jay Sullivan is the CEO and Founder, while Tom Larsen is a Co-Founder. While Towdah Olayemi is the Marketing and Community Manager. The protocol development team has chosen to remain anonymous.
Lastly, the team has locked their share of XSP crypto in a time-locked smart contract (XSPTimeLocker). They locked 1 300 000 000 XSP for 30 months. It is a public smart contract, so users can view it on an XDC block explorer. The team can also withdraw 130 000 000 XSP every three months.
Roadmap
Since October, the XSwap team has been completing its 2021 roadmap. Their collaboration with the XSP community has resulted in various successful target achievements.
Firstly, they deployed the XSP smart contract using the Solidity programming language on October 19th. Additionally, Techrate conducted an audit of the smart contract on the 24th.
Next, the XSP protocol partnered with the SWIFT blockchain app. This allowed XSP holders to swap their tokens with over 300 other tokens from the end of November.
In November, the team made XSP available to the public. They listed XSP on Coinmarketcap and CoinGecko. At the end of the month, they partnered with Bitrue Exchange.
Moreover, in December, Techrate audited the XSP Staking Contract. They then listed XSP on the Lbank Exchange. This listing allowed XSP crypto users to stake their holdings and trade XSP in a competition. They also launched Farming on the Bitrue Exchange for a limited time.
Lastly, the team announced its inclusion in the SWIFT all-chain bridge. This allows crypto holders to swap or bridge their coins to XSP on the XDC network.
The Technology of XSP Crypto
XDC Network
The Xinfin Network has a public and private blockchain. This means it is a hybrid blockchain. Because it has a permission network, it has better security than popular blockchains like Ethereum or Tron.
Accordingly, this level of security makes Xinfin perfect for international trade and finance organisations. It also provides tools to these enterprises to create tokens, facilitate instant transactions, and provide flexibility with financial infrastructure.
Furthermore, the XDC Network uses Delegated Proof-of-Stake (DPoS) as its consensus mechanism. It has several advantages over blockchains like Bitcoin and Dogecoin that use the older Proof-of-Work mechanism (PoW). DPoS is much more energy-efficient than PoW because it does not rely on raw computing power. Instead, it depends on a group of master nodes to verify and process transactions on-chain.
These master nodes can verify transactions without needing consensus from all the other nodes on the network. This makes the blockchain faster and lowers transaction fees.
To illustrate, the XDC Network has a transaction confirmation time of 2 seconds. Bitcoin has a confirmation time of 10-60 minutes. At the same time, Ethereum has a confirmation time of 10-20 seconds.
Moreover, XDC can process more than 2000 transactions per second (TPS). Bitcoin can process over 3 TPS and Ethereum over 12 TPS.
Finally, this level of security, speed, and customisation make XDC the perfect platform for financial institutions and new DeFi projects. XSP crypto seeks to provide a DEX that supports the XinFin ecosystem through token swapping and other DeFi services.
Automated Market Maker
In traditional markets, traders set prices for their assets, and buyers buy the asset that has the most acceptable price. In turn, this becomes the asset’s market price.
On the other hand, Automated Market Makers (AMMs) use liquidity pools to determine asset prices. More specifically, crypto holders place their tokens in pools with other holders. They receive rewards for locking their tokens in liquidity pools. These pools usually have two tokens that holders can swap. For example, a liquidity pool could have XSP / XDC.
Furthermore, AMMs balance the supply of the two tokens in a liquidity pool to maintain their value. If 1 XSP is worth $1 and 1 XDC is worth $2, there should be 2 XSP for every 1 XDC (2/1).
Lastly, the XSP crypto project will leverage liquidity pools with all XDC network tokens (XRC-20) and allow users to swap these tokens instantly.
XSP Tokenomics
XSwap’s native token, XSP, allows its holders to interact with the DEX. XDC holders can swap their tokens for XSP and participate in yield farming and staking in the protocol.
Moreover, it has a maximum supply of 13 000 000 000 XSP. It currently has a market of over $29 million market cap, and its daily trading volume is $173 164. There are 4.87 billion XSP in circulation.
The team has decided to distribute the token as follows: 10% to the team and founders. 20% for partnerships and listings. 47% for the ecosystem and 23% for token sales. The team will burn unsold tokens.
Moreover, the team has shared the public addresses of the smart contracts for the token, team, and ecosystem. Blockscan verified the tags of the addresses, and Techrate audited the contracts.
Finally, the team has locked 50% of their XSP crypto share for one year.
Price History And Predictions
The XSP launched in November. It has a current price of $0.005897. On December 1st, it reached an all-time high of $0.0148. It had a daily trading volume of over $2 million.
Moreover, since December 10th, XSP has been trading between $0.006369 and $0.0103. Accordingly, this is a new project, and it is currently in test mode. It has not launched its services like staking and farming yet. Its reliance on other platforms like Bitrue and Lbank has not attracted many traders.
Predictions
According to Price Prediction, XSP will reach $ 0.009 in 2022. It will also reach $0.022 after three years. They predict that XSP will have slow growth in the future.
Moreover, Wallet Investor predicts that holders can earn long-term returns of 337.80% on XSP in 1 year. They also expect that XSP will reach $0.1081 in 2026.
In summary, both coin prediction sites predict that XSP will see some growth in the future. XSwap is still a new project and could grow faster or lose support. Remember to do your research when purchasing any speculative asset.
XSP Crypto Features
Staking
XSwap has a staking portal for users to earn rewards on their XSP holdings. The staking contract has a maximum of 4 000 000 000 XSP, and users can receive 13% rewards for the 1st three months.
Moreover, the XSP governance platform will determine the staking rewards after the initial staking rewards. Early investors could buy 3 million XSP at a discounted price.
Users need to stake a minimum of 3 000 000 XSP. Stakers can claim their rewards or withdraw their stake at any time. Furthermore, users can restake their rewards without needing to unstake them first.
Additionally, staking is risky. Firstly, you might not receive the promised rewards payout, so always check if you have received the rewards as promised. If not, unstake your coins immediately.
Lastly, always check the minimum staking amount before staking your crypto. XSP clearly states that you need to stake at least 3 million XSP to receive rewards. XSP holders can also stake their coins on the LBank exchange for less than 3 million.
Farming
Yield Farming, or just Farming, is a process that allows users to deposit their crypto tokens in liquidity pools and earn rewards in their deposited tokens. These liquidity providers or LPs receive the proportions of trading fees involving these liquidity pools.
Moreover, being an LP for some projects is the only way to receive a project’s native token. These could be a platform’s governance token or a stablecoin user can trade for fiat currencies.
Additionally, LPs determine which liquidity pools have the best profits using APY (Annual Yield Percentage). This is the percentage LPs can earn in tokens over a year.
On the other hand, it is important to remember that cryptocurrencies are highly volatile assets. Their prices can fluctuate at any time of the day. Crypto markets do not have the same closing times as traditional financial markets.
In the case of the XSP protocol, the team has allocated 37% of the total XSP supply to staking and farming rewards. This means that a significant proportion of XSP stakers and farmers can earn from liquidity pools without waiting for other users.
Lastly, at the beginning of December, the XSwap team launched XSP farming on Bitrue Exchange. XSP holders filled the pool in seconds, receiving a 100% APY.
How To Buy XSP Crypto
Buying any cryptocurrency requires a wallet and some other cryptocurrency to trade. This is especially true in decentralised exchanges. Interested investors can purchase XSP on a few exchanges with minimal fees.
Wallets
Firstly, using a wallet that suits your crypto needs is essential. This means you need to determine how to trade and store your crypto.
It is better to utilise a software wallet if you want to hold crypto for a short time and in small amounts. For example, you could use MetaMask. It has a mobile app and a browser extension. Registering requires an email address or mobile number.
Furthermore, you can create an XDC wallet. Here you do not need to include any personal information. You can set it up with a password and receive a public address and a software wallet.
Moreover, you could purchase a hardware wallet if you want a more secure wallet. The D’cent wallet has support for XSP. It costs $119 and has a biometric scanner for added security.
Listed Exchanges
After creating a wallet, you can use a decentralised exchange to purchase XSP. Usually, you need another cryptocurrency like XDC or DOGE.
Furthermore, XSP’s partnership with the SWIFT blockchain and all-chain bridge means that users can swap their tokens for XSP and vice versa. You need to connect your wallet and swap your held tokens for XSP.
Lastly, you can trade tokens for XSP at LBank Exchange and Bitrue Exchange.
Final Thoughts
XSP crypto is a fairly new AMM decentralised exchange. It is currently in test mode, and the coin has only recently launched.
The team has hosted a bounty campaign and held staking and farming events. It is developing partnerships with other exchanges but has only launched its staking protocol.
This means there is room for improvement going into 2022. But it is one of the few DEX protocols on XDC that promises to connect XRC-20 tokens across the XinFin ecosystem.
