In the Cardano ecosystem, it's like growing mushrooms after rain since numerous Dapps are released. MinSwap is the first decentralized exchange that released the testnet and received lots of attention from the community. Recently, it announced to go mainnet on March 8th, 2022 after the MIN token release in Feb 2022.
The article below will provide all detailed information about MinSwap, including:
- What is MinSwap? How does it work?
- All detailed information about MIN Tokenomics and how to get, buy MIN tokens.
- Roadmap and updates.
- Details about the team, investors, and partners.
- Is MinSwap a good investment?
Let's explore the potential of Minswap!
What is Minswap?
Minswap is an AMM decentralized exchange built on Cardano that brings users the swapping service with a minimal fee and the best experience. With an innovative idea and a new strategy for token distribution, MinSwap is emerging as a fresh breeze in the Cardano ecosystem.
How does MinSwap work?
MinSwap uses a Multi-function liquidity pool that is composed of the following AMM principles:
- Constant-product pool by Uniswap.
- Stable pool by Curve.
- Multi-asset pool by Balancer.
- Dynamic pool by Kyber.
The community will vote on the integration of new AMM protocols if there’s any new and better idea. This is a good idea from MinSwap as every protocol has its pros and cons. Users can trade with the best price given by MinSwap.
The babel fee mechanism allows users to pay other tokens for transaction fees instead of ADA. This means the fee will be paid by stake pool operators (SPOs) in ADA and they will receive the paid tokens. This feature will be facilitated by the Cardano blockchain in the future. Therefore, traders don’t have to hold ADA.
Besides the main functions of an AMM DEX, MinSwap also tries to realize many DeFi products on the platform, including:
- FISO Distribution (Ended): The FISO program allows users to stake ADA in MinSwap partners’ stake pools and they will receive MIN and MINt tokens instead of ADA rewards as usual.
- Yield Farming (March 14th, 2022): MIN tokens are rewarded to liquidity providers who stake their liquidity pool tokens.
- Launchpool (developing): Supporting new projects in the Cardano ecosystem with Initial DEX Offering (IDO) and Initial Farm Offering (IFO).
- Community and Governance (developing): Liquidity providers are rewarded with tokens from trading fees. MIN token holders can vote democratically on protocol changes.
- Ethereum Compatible (developing): With ERC-20 Converter, users can trade Ethereum tokens at much lower fees.
What is MinSwap Token (MIN)?
MIN is the utility and governance token of MinSwap that allows users to participate in DeFi products on the Minswap platform.
Detailed information about MIN Token
MIN Key Metrics
- Token Name: MIN.
- Ticker: MIN.
- Blockchain: Cardano.
- Token Standard: Updating...
- Contract: 29d222ce763455e3d7a09a665ce554f00ac89d2e99a1a83d267170c6.
- Token Type: Utility and Governance.
- Max Supply: 5,000,000,000 MIN.
- Circulating Supply: Updating...
MIN Token Allocation
The MIN Token has the total max supply of 5,000,000,000 tokens distributed as follows:
- Yield Farming: 70%.
- Core Team: 10%.
- Development Fund: 10%.
- DAO Treasury: 6%.
- FISO Airdrop: 2.5%.
- Incentive programs / Partnerships: 1.5%
MIN Token Sale
On Oct 10th, 2021, MinSwap opened a public sale that allowed investors to purchase 40 MIN tokens with 1 ADA. The total public sale was 0.5% of the token supply equalling 25,000,000 MIN tokens with no vesting schedule and lockup period. The tokens were sold out after one hour.
At the writing time, the ADA price is $2.2. That means the MIN token price is $0.055.
MIN Token Release Schedule
The FISO vesting schedule for MIN and MINt is a 45-day lockup period then followed by a 45-day vesting schedule. MINt is a token that will be converted into MIN if it’s locked in a contract with ADA for 45 days. Users can lock ADA and MINt in the ADA/MINt pool to earn MIN tokens.
MIN Token Use Case
MIN is the utility and governance token of the MinSwap platform and it has the following functions:
- Governance: MIN holders can vote on changes and updates for the protocol.
- Rewards: MIN token holders will receive a portion of the platform revenue, depending on the number of tokens they own.
How to get MIN Token
You can get MIN token airdrops via the FISO program or by participating in the public sale. The FISO program started at the beginning of epoch 285 (Aug 18th, 2021).
How to buy MIN tokens
Roadmap & Updates
- Q2 2021: Fundraising, Constant-Product Pool, Testnet.
- Q3 2021: Release Mainnet, Security Audit, Liquidity Mining, Initial DEX Offering (IDO), Initial Farm Offering (IFO).
- Q4 2021: Release the stable Pool.
- Q1 2022: Release Decentralized Autonomous Organization (DAO), Community Governance.
Team, Investors, and Partners
Is MinSwap (MIN) a good investment?
Like other projects on Cardano, MinSwap is a new project in the development process. Therefore, everything is still on paper and the team needs time to assemble everything.
In terms of technology, MinSwap proposed an “aggregator” of AMM protocols while other similar DEX uses a single AMM protocol. This might benefit users and strengthen the competitive advantage of MinSwap. However, the final product is yet to be released so users can’t evaluate its “convenience” yet.
After receiving a $37,500 grant from Catalyst, the MinSwap team was funded for about 7 months. Then they continued to put forward funding proposals on the Catalyst Project platform and decided to raise funds from investors in a public token sale extracted from the development fund. This means the team needs funds from both sides to accelerate the development progress.
The MinSwap team is young and talented, as they build everything from scratch with no VC or initial investment. This was demonstrated through the concurrency problem in Sep 2021. MinSwap released the testnet when there were some problems with the platform. After a few days, the Cardano community and MinSwap proposed detailed solutions for that problem.
However, smart contracts on Cardano released in Sep 2021 are written in Haskell and Plutus programming languages. The languages themselves are different from the programming language Solidity. Therefore, the development process of projects depends on the Cardano infrastructure.
Minswap is going to go mainnet on March 18th, 2022, making it be the 5th DEX on Cardano to mainnet. Like SundaeSwap, temporary congestion can occur on the mainnet, but Minswap has prepared for that.
As retail investors, we can invest in MIN tokens or participate in the yield farming with MIN and ADA. And as usual, whether it is worth investing or not, Do Your Own Research before buying and be responsible for your investment.
MinSwap is a relatively strong competitor compared to other similar projects on Cardano. They’re in the same race to be the first and the dominator in the Cardano ecosystem such as SundaeSwap, ErgoDex, Genius Yield, etc.
There are other similar big AMM DEXs on other blockchains such as Uniswap, RaydiumSwap, PancakeSwap, etc.
MinSwap is going to launch its platform on Cardano. With the support from the community and investors, Minswap might take off. That is all you need to know about MinSwap and its MIN token. I hope you’ve gained helpful insights to understand the potential behind MinSwap.
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