In this article, we would like to introduce UBE - the world's first AMM (Auto Market Marker) in the Celo ecosystem. We'll be covering the following topics:
- What is Ubeswap? What are Ubeswap’s features?
- UBE Tokenomic: key metrics, token allocation, and token use-cases.
- How/Where to earn and store UBE tokens?
- Roadmap & Updates.
- Team members, Investors, and Strategic Partners.
What is Ubeswap?
Ubeswap is a decentralized exchange and automated market maker (AMM) protocol for Celo assets. At its core, Ubeswap enables Celo users and applications to trade between any two tokens based on the Celo Blockchain. Ubeswap launched in February 2021.
How does Ubeswap work?
An AMM functions similarly to an order book exchange in that there are trading pairings, such as CELO/UBE. To make a transaction, however, you do not need to have a counterparty (another trader) on the opposite side. You instead interact with a smart contract that creates the market for you.
Ubeswap is based on elements from Uniswap, Sushiswap, Synthetix, and Compound. This is to ensure that the Ubeswap ecosystem can support as many existing tools and projects from the Ethereum ecosystem as possible.
Ubeswap has a pricing algorithm nearly identical to Uniswap. This formula may differ depending on the protocol.
Ubeswap defines the cure algorithm by following a formula similar to x*y = k (fixed constant number), where x is the quantity of one token in the liquidity pool and y represents the quantity of the other. In this formula, k is a fixed constant, which means that the overall liquidity of the pool must always be constant.
By adding liquidity on Ubeswap, you will receive 0.25% of all trades involving the pair you added to pools, according to your pool share. Fees are added to the pool, accrue in real-time, and can be claimed by withdrawing your liquidity.
You can only add 2 tokens to pools like Uniswap at this time because the capitalization of tokens in the Celo ecosystem is still low. As a result, adding more tokens to liquidity pools is extremely risky by impermanent loss for users.
Ubeswap is quite similar to allowing users to provide liquidity to pools with the fixed ratio (50/50). That makes more innovative AMM strategies suitable for fast-changing markets like DeFi. For example, if you're providing liquidity for the CELO-cUSD pool, you have to provide an equal value (in USD) of CELO and cUSD tokens.
What is the UBE token?
UBE is the governance token of Ubeswap. Ubeswap rewards liquidity providers with UBE tokens.
Detailed information about UBE token
UBE Key Metrics
- Token Name: Ubeswap.
- Ticker: UBE.
- Blockchain: Celo.
- Token Standard: cERC-20.
- Contract: 0x00be915b9dcf56a3cbe739d9b9c202ca692409ec
- Token Type: Utility, Governance.
- Total Supply: 100,000,000 UBE.
- Circulating Supply: 33,000,000 UBE.
UBE Token Allocation
- Mining Reserve: 34%.
- Partnership & Ecosystem: 30%.
- Team & Advisors: 13%.
- Early Supporter & Strategic Investors: 12.7%.
- Celo Reserve: 8%.
- Liquidity: 2.3%.
UBE Token Release Schedule
A total of 06 million tokens will be distributed in the first year and then nearly all tokens will be released gradually until the end of Year 3.
UBE Token Sales
Ubeswap rewards liquidity providers weekly with UBE tokens.
UBE Token Use Cases
- Protocol Incentives: Rewarding liquidity providers for their contributions by staking tokens in the protocol.
- Governance: Active stakeholders and liquidity providers are actively engaged in the process of discussing, voting for protocol upgrades.
- Setting the base network swap fee in Ubeswap.
How to get UBE Token
You can get UBE by swapping directly on the Ubeswap Website.
How to store UBE Token
You can store UBE on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search UBE Token.
Step 3: Click on the correct result, copy the wallet address and send UBE to this address.
Going forward, Ubeswap will remain committed to providing decentralized liquidity to the Celo community and beyond.
Step 1: Expanding the team and bringing on key contributors in preparation for the launch of the community partners program (2,000,000 UBE to be awarded).
Step 2: Ubeswap V2 (version 2) is being developed for leverage yield farming, and the new engine may tokenize other assets such as NFTs, Stable Assets.
Step 3: Upgrading cross-chain bridges with Ethereum, Solana to utilize more liquidities, allowing new Celo assets to be supported.
Step 4: Increase the number of available on-ramps and wallets, as well as front-end incentives.
Step 5: Attain true DAO (decentralized autonomous organization) status. Ubeswap will then be completely decentralized and community-run.
Team, Investors, and Partners
- Ivan Macalinao - Founder: Ivan is one of the sharpest developers in crypto- and blockchain technology. He has 3 current jobs including Co-founder at Monotone Fund , Co-founder at Saber Labs, and Co-founder at Ubeswap.
- Evan Kereiakes - Business Lead: Evan worked at the Federal Reserve Bank of New York for over 7 years on the foreign exchange reserves management team. He also has experience at the U.S. Treasury Markets Room and the White House National Economic Council.
- Brian Li - Technology Lead: Brian has spent the past years immersing himself in DeFi by building primitives like Poof.cash, Romulus, Ubeswap, and Nomspace.
Is Ubeswap (UBE) a good investment?
Ubeswap is one of the Celo ecosystem’s first AMM projects, so Ubeswap has the advantage of being a pioneer compared to other competitors in the same ecosystem.
Ubeswap’s Total Value Locked (TVL) is currently about $71 million, which increased over 5,000% in the last five months. The TVL of the Celo ecosystem will continue to develop in the time to come, therefore investing in Ubeswap is a viable alternative.
Disclaimer: All the information in this article is only for information purposes and should NOT be considered investment advice. Investing in Crypto contains hugely high risks, and you should only invest the fund you are willing to lose.
By looking at similar projects, you can compare Ubeswap’s product quality and the possibility of a future price increase. Other projects that also provide similar AMM services as Ubeswap include:
- Ethereum: Uniswap, Sushiswap, Curve,...
- Binance Smart Chain: PancakeSwap, Biswap,...
- Solana: Raydium, Serumswap,...
- Polygon: Quickswap,...
- Avalanche: Pangolin, Trader Joe,...
There are many AMMs and potential crypto projects, therefore choosing which projects to invest in is not an easy task. In this article, I have also introduced you to Ubeswap and how about your opinion, is Ubeswap an AMM platform worth investing in? You can comment your views right below the article so we can discuss more.