"Testnet is live"

FAQ

Last updated: August, 2022

VirtuSwap is an AMM-based DEX with unrivaled efficiency. There are no gimmicks – just a no-nonsense focus on the bottom line of traders and liquidity providers.

DEXes are a cornerstone of DeFi. DEXes solve several problems that are plaguing CEXes: fake (wash) trading, and custody. However, trading on DEXes tends to be more expensive than on CEXes, both because of high transaction costs and high price impact.
For this reason, currently, the trading volume on CEXes dwarfs that on DEXes. We believe that DEXes are the future of trading in crypto assets. However, in order for DEXes to reach their potential of becoming the main trading venue for crypto assets,trading costs need to be lowered significantly.

VirtuSwap solves two problems.
  • First, it reduces trading costs significantly,
  • Second, it increases the returns to liquidity providers (LPs).

Currently, a large fraction of trading on DEXes is “triangular” in nature – i.e. to buy asset C with asset A, a trader often has to trade through an intermediary asset B. This raises all components of trading costs: fees to LPs, price impact, and gas fees.
VirtuSwap financial technology is based on trading in “virtual pools”. In essence, virtual pools are a representation of pool architecture in which pools are able to accept “reserve” of various assets even if these assets are not the “native” assets of a given pool.
The result is complete elimination of triangular trading and significant reduction in average trading costs.
In addition, trading through virtual pools reduces pool imbalances relative to trading in standard two-asset pools, reducing arbitrageurs’ profits and LPs’ impermanent losses. This raises LPs’ returns to liquidity provision, increases equilibrium pool sizes, and lowers trading costs further.

VirtuSwap achieves the best results relative to traditional DEXes for asset pairs that do not have a significant liquidity pool. Most assets have a single sizable liquidity pool, typically with either ETH or one of the two major stable coins (USDC and USDT). Trading in any other pair is likely cheaper on VirtuSwap than on competing DEXes.

A liquidity provider on VirtuSwap agrees to accept assets other than the two native assets of the pool as reserves. This presents risks that are unique to VirtuSwap. However, these risks are small – the value of reserves never exceeds 2% of the pool values; these risks are temporary – reserves accumulating in various pools are constantly exchanged with other pools on which the reserves constitute one of the native assets; and these risks are managed – even if reserves cannot be exchanged, they are periodically sold in pools in which they constitute one of the main assets.

We have done extensive simulations using real on-chain data, which provide numerical estimates of the superiority of trading on VirtuSwap relative to traditional DEXes. VirtuSwap allows to reduce the costs of trading by roughly 30% and, at the same time, increase returns to LPs by around 10%.
We are continuing to improve our simulations to make these estimates even more precise.

There are several. First, we use a unique virtual-pool-based, reserve-fueled pool architecture to deliver superior results.
Second, we are building a sophisticated, data-science based real-time optimization module that will allow always deploying liquidity where it is needed most. Third, and most importantly, the experience, creativity, and vision of our team is second-to-none.

VirtuSwap team comprises top academic researchers in finance, top executive in the blockchain space, an outstanding blockchain developer and experienced UI/UX designer, experienced data scientists, top performers in the fields of operations and marketing, and talented UI/UX designer. In addition, VirtuSwap often relies on suggestions of top advisors, having key roles in the ecosystem.

VirtuSwap can be deployed on any EVM-based network. We plan to initially launch it on Polygon, followed by Ethereum. We are also in the process of negotiating deploying VirtuSwap technology within existing DEXes on smaller EVM-compatible blockchains.

VirtuSwap relies on three pillars of growth.
First, we are currently actively building the community of future users. Our marketing strategy includes incentives for early adopters.
Second, we are integrating with aggregators. Given VirtuSwap superior performance, much of the trading volume will be routed to VirtuSwap once we reach sufficient liquidity.
Third, initially we will be incentivizing liquidity provision via VirtuSwap tokens, starting with a lockdrop and continuing with incentives to pools that are most important in the VirtuSwap ecosystem. This incentivization will be performed in real time using real data flow.
Fourth, some of our investors include the most prominent market makers in the crypto space. We are working on security liquidity provision arrangements with them and other market makers.
Overall, we are confident that we will be able to successfully jumpstart VirtuSwap.

VirtuSwap token will be issued in Q1 2023, and will be called VRSW. VRSW will be used for VirtuSwap governance.

Our tokenomics is heavily influenced by Curve VeCRV tokens used for governance. Holders of VRSW tokens are incentivized to stake their tokens and receive gVRSW tokens, used for voting on various issues, mostly on protocol parameters and assets that can enter reserves of liquidity pools. Unlike Curve, in which CRV tokens need to be locked to receive VeCRV, VirtuSwap introduces an elegant solution in which holding tokens accrues governance and cash flow benefits without a requirement to using tokens.

We are aiming for a launch the protocol towards the end of Q4, 2022 and VRSW token in Q1, 2023.

Yes. We are already working on v2 and v3. Without going into much detail, future versions would include:
  • A decentralized hedging module, which will enhance the set of reserve assets and further increase efficiency;
  • An Initial Decentralized Offering module, which will be highly liquidity-efficient and will allow trading between a newly listed crypto asset and virtually any other asset directly (without intermediary assets) at relatively low costs.
  • A single-sided liquidity provision.

Virtus is the Roman god (or goddess) of virtue. VirtuSwap is all about efficiency and fair distribution of profit in the AMM world, these are real virtues of a trading system. Also, VirtuSwap uses reserve-powered virtual pools, so yet another reason.