Date - Cryptocurrency X Webflow Template
Reading Time - Cryptocurrency X Webflow Template
 min read

How unidirectional swaps expand the circulation of tokens in the market.

OpenEXA's Unidirectional Swaps will allow OXA to continue to grow and expand in the marketplace.

OpenEXA’s unidirectional swap

OpenEXA swap is an AMM based decentralized swap that offers a unique unidirectional token swap mechanism. This mechanism allows users to swap one type of token for another without the need for a counterparty to complete the trade. In a unidirectional swap, which guarantees that the user will receive a certain amount of the new token in exchange for the old token. The swap is irreversible, meaning that once the transaction is completed, it cannot be undone. This mechanism offers several advantages, including increased liquidity, lower transaction costs, and faster transaction times. By eliminating the need for a counterparty, unidirectional swaps reduce the risk of fraud or failed trades, making them a secure and efficient way to exchange tokens on a decentralized platform.

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Unidirectional Swap

OXA tokens can be traded on decentralized exchanges (DEXs) such as Uniswap. When a user wants to buy OXA tokens on a DEX, they first need to connect their cryptocurrency wallet to the DEX platform. They then select the token they want to buy and the amount they want to spend, and the DEX automatically finds the best exchange rate available and completes the transaction. The tokens are transferred directly from the seller's wallet to the buyer's wallet, and the transaction is recorded on the blockchain. Additionally, users can provide liquidity to a DEX by depositing OXA tokens and another token such as Ethereum in a liquidity pool, earning a portion of the trading fees generated by the pool in return.

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OXA and AUT on Uniswap

AUT tokens can be listed on Uniswap's non-fungible token (NFT) marketplace, allowing users to buy, sell, and trade unique digital assets such as digital bonds, stocks, or commodities. To list an NFT on Uniswap, the asset must be tokenized and follow the ERC-721 token standard. Once listed, buyers can purchase the NFT using either Ethereum or any other ERC-20 token such as OXA. The price of the NFT is set by the seller, and the transaction is completed through the Uniswap platform, with the seller receiving the payment and the buyer receiving the NFT in their wallet.

OpenEXA's Unidirectional Swaps will allow OXA to continue to grow and expand in the marketplace.

Unidirectional swaps refer to a type of financial transaction or trading activity where parties involved agree to exchange assets, securities, or other financial instruments in one direction only. In a unidirectional swap, the exchange occurs between two parties, and one party receives a specific asset or financial instrument while the other party receives a different asset or financial instrument in return.

For example, let's consider a simple unidirectional interest rate swap. In this scenario, two parties, Party A and Party B, agree to exchange interest payments based on a fixed interest rate and a floating interest rate. Party A pays a fixed interest rate, and in return, Party B pays a floating interest rate based on a reference rate like LIBOR (London Interbank Offered Rate).

Unidirectional swaps can serve different purposes, such as managing risk, hedging against interest rate fluctuations, or gaining exposure to certain assets or markets. They are often used by financial institutions, corporations, and investors to achieve specific financial goals. Such as fostering OXA adoption and establishing OXA as widely accepted tokens.

It's important to note that unidirectional swaps differ from traditional swaps, which involve an exchange of assets or financial instruments in both directions. In traditional swaps, both parties agree to exchange payments based on different terms, making it a more complex financial arrangement compared to unidirectional swaps. OpenEXA's unidirectional swap only allows swaps with OXA as one of the pairs on liquidity pools.

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