Carbonswap – Swap tokens with this lean green machine

  • CarbonSwap is a decentralised Application (dAPP) that runs on the Energy Web Chain (EWC) - a public, enterprise-grade blockchain platform designed for the energy sector.
  • It offers a tonne of advantages, such as low gas fees, staking and NFT minting, compared to already established Decentralised Exchanges.
  • Most importantly, this platform is pioneering the energy transition to help make the environment a better place.

Investment Idea

Hidden in plain sight and unrecognised by the larger crypto community, lies a decentralised exchange, that is not just built with sustainability in mind, but enables one to swap tokens with near no fees. CarbonSwap Finance describes itself as a green and sustainability-focused decentralised finance (DeFi) platform and non-fungible token (NFT) marketplace. It offers a bi-directional “bridge” and exchange between Energy Web Chain and the Ethereum Mainnet.

Just like other decentralised exchanges, Carbonswap does not have an order book. There are no buy or sell orders. Instead, there are liquidity pools for token pairs. Anyone can enlist token pairs providing liquidity for traders, while at the same time, nobody is able to restrict this, as this is a pure DEX based on ownerless smart contracts. A trader looking to swap tokens would need to pay 0.3% swap fees, which is the standard for DEXes. The DEX tries to find you the most optimal way of doing so, routing through multiple token pairs. There needs to be a route with enough liquidity to support your trade. The market price is determined by the ratio of the tokens in the pool.

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Let’s say, you want to swap token A for token B. The market price is determined by the ratio of the reserves A/B. You will put token A in the reserves and take some token B out.

Each trade changes the market price. If your trade size is big relative to the liquidity pool size, it might cause slippage - a larger impact on the market price. Large slippage also means your trade is less efficient. The larger the liquidity pool, the larger trades you can make. If you are okay with larger slippage, change your tolerance in the settings. If your transaction is pending for a long time, check if the gas settings were correct, or if the nonce of your transaction is correct. The contracts are solid and there are five-second block times.

Conclusion
With gas fees in the ethereum network reaching ‘untransactable’ levels, this small but growing DEX offers investors a hidden alleyway to swap tokens at incredibly cheap prices and lightning speed. Their governance token, SUSU, has been severely beaten down since its peak, but with a lucrative reward pool, an entry at this stage ($0.07) would offer much less risk, given that the large majority of investors bought in at a much higher price point ($1).

Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.

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