Terraswap: Taking A Deep Dive Into The DEX

Terraswap

Late last year, a new player joined the quickly growing list of Decentralized Exchanges (DEXs) that were making waves in the DeFi space. Terraswap, part of the ambitious and quickly growing Terra ecosystem, made its debut in November of 2020.

The platform, created by DELIGHT LABS, was announced via a blog post, and unsurprisingly given its name, was inspired in large part by popular DEX Uniswap. Now, as the project debuts a new Twitter account of its very own and solicits contributions and comments from the diehard Terra community, it’s time to take a closer look at Terraswap.  

What Is Terraswap?

Terraswap is designed to create automatic decentralized markets for token pairs that enable users to trade assets directly on-chain. The goal of these new markets, according to that first blog post announcing the new platform: bring DeFi applications and capabilities to Terra.

“Terraswap will…finally provide users on Terra with another avenue of generating yield,” outside of simple Terra staking, the Delight Labs team wrote. Instead, “users can choose to become liquidity providers by depositing assets (which they can later withdraw) to Terraswap pools, which help trades execute at lower fees.” 

In return, these liquidity providers are rewarded with LP tokens. These tokens entitle them to a share of the protocol trading fees and can be used in other DeFi applications on Terra.

But that’s not all. The Delight Labs team reports that new projects are “just around the corner.” They also plan “to play a central role in facilitating the cross-pollination of novel solutions on the Terra blockchain.”

The latest news and how to get involved

It seems more news on Terraswap could be headed our way shortly. 

The Terraswap team recently unveiled a new Twitter account of their very own. Already, the account is being used to solicit comments and contributions on the project’s application source from the community of Terrans and Lunatics who follow the space. More news on the Terraswap project will be shared on that account going forward, according to the Terra and Delight Labs teams.

For now, if you want to know more about the protocol and the team behind it, just visit the Terraswap website. You can also read their documentation, and follow on Twitter.

Or, if you want to get more involved with Flipside’s incredible community, you can join us on Discord, follow on Twitter, and subscribe to our newsletter, the Bounty Brief!

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