AirSwap is a revolutionary platform that enables peer-to-peer over-the-counter (OTC) and request for quote (RFQ) trading of Ethereum ERC-20 tokens and non-fungible tokens (NFTs). Founded by Michael Oved and Don Mosites, AirSwap operates on decentralized principles, ensuring that users have full control over their funds without the need for a custodian. The platform’s smart contracts facilitate secure and atomic swaps, eliminating counterparty and intermediary risks.
One of the key features of AirSwap is its non-custodial and atomic nature, which guarantees that trades are executed seamlessly without the need for deposits or escrow. This ensures that both parties receive what they traded for, or neither does, enhancing trust and transparency in the trading process.
Unlike centralized exchanges, where users have to trust the exchange to safeguard their funds, AirSwap’s decentralized approach eliminates the need for trust in a third party. By executing trades directly from one wallet to another, AirSwap mitigates risks associated with front running and maximal extractable value (MEV) that can be prevalent in fully on-chain DEXs.
AirSwap’s self-sustaining decentralized autonomous organization (DAO) model ensures that protocol fees are automatically routed to governance and development pools, allowing users to participate in the platform’s evolution. This unique feature sets AirSwap apart from other decentralized exchanges and underscores its commitment to community-driven governance.
In terms of token economics, AirSwap launched the AirSwap Token (AST) in 2017, with a total supply of 500 million tokens. AST can be traded on AirSwap, other DEXs, and reputable centralized exchanges like Coinbase and Binance. As an ERC-20 token, AST enables holders to become makers on the AirSwap network, participate in governance through staking, and vote on proposals that shape the platform’s future.
Overall, AirSwap’s decentralized and user-centric approach to trading sets it apart from traditional exchanges, offering a secure and transparent platform for individuals and trading firms to swap tokens directly with each other. With its innovative features and commitment to community-driven governance, AirSwap continues to push the boundaries of decentralized finance and revolutionize the way we trade digital assets. Participants in votes on AirSwap earn a claim on a portion of the protocol fees generated by trades on the decentralized exchange (DEX). This unique incentive structure rewards users for actively engaging with the platform and contributing to its governance.
In addition to earning a share of protocol fees, members with staked AST tokens also receive a swap bonus on trades executed on AirSwap. This bonus directs a portion of the protocol fee directly to the member’s wallet during a swap, providing an additional benefit for those who hold and stake AST.
This model not only incentivizes participation and voting within the AirSwap ecosystem but also rewards users for their loyalty and commitment to the platform. By actively engaging with the governance process and staking AST tokens, users can earn both a passive income from protocol fees and a bonus on their trades.
Overall, this innovative approach to incentivizing user participation and engagement sets AirSwap apart from traditional exchanges and demonstrates the platform’s commitment to creating a community-driven ecosystem. Participants are not only stakeholders in the protocol but also beneficiaries of its success.
As of the latest update in September 2024, AirSwap continues to evolve its governance and incentive mechanisms to further empower its community of users. With a focus on transparency, fairness, and user rewards, AirSwap remains a pioneer in decentralized exchange technology.