WagyuSwap is an automated market maker (AMM)-based decentralized exchange (DEX) built on Velas' blockchain. The WagyuSwap exchange offers low-cost token swaps with ultra-fast transaction confirmations. Plus, users can provide liquidity to the platform and earn trading fees using the native VEP-20 WAG token. Also, liquidity providers earn LP tokens, which they can stake to earn additional WAG token rewards. Furthermore, "Sizzle" pools offer attractive interest rates for staking WAG tokens. Additionally, users can choose between manual and automatic compounding pools to earn flexible returns with minimal friction. Thanks to the integration of the stablecoin protocol from Swapz, the WagyuSwap exchange offers cross-chain token swaps with a simple, sleek user interface. Users can seamlessly swap tokens between Ethereum, Binance Smart Chain (BSC), Velas, and Polygon. 

In this article, we’re going to dive deep into the WagyuSwap decentralized exchange (DEX). Also, we’ll look at some of the projects behind the exchange, including Velas, BlueZilla, and the Swapz stablecoin protocol. Plus, we’ll explore the various features of the platform, including ultra-fast token VEP-20 swaps, Sizzle pools, yield farming, and the WAG token!

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What is WagyuSwap?

Incubated by BlueZilla, WagyuSwap is the first decentralized exchange (DEX) and automated market maker (AMM) built on Velas' blockchain. The platform is non-custodial and fully decentralized and offers near-instant token swaps, liquidity mining, and yield farming opportunities. Also, users can put their digital assets to work and earn WAG token rewards by participating in WagyuSwap staking. Plus, users can earn trading fees by providing liquidity to the platform.

WagyuSwap offers attractive interest rates on several crypto assets. The layout of the platform is similar to that of PancakeSwap. Users can easily navigate between token swaps, liquidity pools, and farms. Plus, the platform offers a lottery feature. New projects are added each week, providing new ways to earn interest on crypto assets. 

Users can farm the WAG token to earn interest or provide liquidity and stake liquidity pool (LP) tokens to earn higher returns. Plus, the more risk a user takes on, the higher the annual percentage yield (APY) they receive to offset some of the inherent risks of market fluctuations. The recent use of the WagyuSwap exchange has seen average APYs of over 11,000% but should decrease over time. Plus, several major exchanges are now listing the WAG token.

The Velas Blockchain

The Velas blockchain is an AI-powered blockchain network that hosts an array of decentralized applications (dApps). Also, Velas uses a novel "artificial intelligent delegated proof-of-stake" (AIDPoS) consensus algorithm in conjunction with the native VLX token to secure the network. Moreover, Velas' blockchain is a fork of the Solana blockchain codebase. However, Velas also boasts Ethereum Virtual Machine (EVM) functionality and support for Solidity's programming language. Some of the most notable projects to emerge from Velas' ecosystem include BitOrbit, VelasPad, Swapz, and WagyuSwap. 

Velas offers near-instant transaction finality and ultra-low fees. Plus, the Velas development community can gain access to the Velas grant program, which provides funding for emerging projects and initiatives. Moreover, Velas offers a flexible suite of tools and services that aim to promote the mass adoption of Web3 and blockchain technologies.

Velas uses artificial intelligence (AI) to automatically adjust protocol parameters to optimize the platform's security and user experience. Using the AIDPoS consensus mechanism, Velas aims to solve the “blockchain trilemma'' of decentralization, scalability, and security. Also, the network boasts cross-chain functionality that makes it simple for blockchain developers to migrate decentralized applications (dApps) from Ethereum, TRON, and Binance Smart Chain (BSC) and also support multiple programming languages. In the future, we can expect to see additional integrations and cross-chain connectivity as the network continues to expand.

Swapz

Swapz is a cross-chain stablecoin protocol that facilitates instant token swaps across all EVM-compatible blockchain networks. Rather than switching between multiple networks, Swapz provides decentralized cross-chain token swaps for a variety of price-pegged assets.

The Swapz platform is easy to navigate and requires no sign-up, verification, or KYC details. Plus, users can enjoy multi-chain decentralized finance (DeFi) using a secure mobile app or web app. Furthermore, the Swapz protocol will support various blockchains. This will include Ethereum, Binance Smart Chain (BSC), Polygon (MATIC), Arbitrum, Cardano, Huobi Eco, Velas, and more!

BlueZilla

BlueZilla is a crypto incubator and venture capital firm. The company provides up-and-coming projects with assistance during development, in marketing, legal advice, etc. Plus, BlueZilla offers an initial DEX offering (IDO) crypto launchpad platform. WagyuSwap, VelasPad, and Swapz were all successfully incubated by BlueZilla. Furthermore, each of these projects has seen tremendous price action following the launch. 

According to BlueZilla's website, the WAG token has risen by 304x, while the VLXPAD token has seen gains of 254x. Moreover, BlueZilla offers world-class expertise to guide new projects from launching through completion. Also, the company provides advice on tokenomic structures to ensure that new projects raise the funds they need to grow sustainably.

The WAG Token

The WAG token is the native utility token of the WagyuSwap exchange. In order to interact with the platform, users must hold a number of WAG tokens. The WAG token uses the Velas blockchain VEP-20 standard. All trading fees are paid in WAG tokens. Plus, all returns from liquidity pools, staking, and yield farming are paid using the WAG token. Also, WagyuSwap operates a lottery where users can purchase tickets using WAG tokens to be in with a chance of winning more WAG tokens. At the time of writing, WAG is trading around $1.35, with a market cap of $62.7 million, according to CoinGecko.

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The WagyuSwap Exchange

The decentralized exchange (DEX) from WagyuSwap uses an automated market maker (AMM) model to facilitate super-fast token swaps on Velas' blockchain. The non-custodial exchange enables users to make token swaps with various trading pairs with minimal costs. Also, transaction fees on the WagyuSwap exchange are extremely low, particularly in comparison to swaps on Ethereum.

The WagyuSwap exchange offers a simple and cost-effective interface for swapping VEP-20 tokens using liquidity pools. For the WagyuSwap exchange to function, there must be liquidity provision. This is because the AMM model uses algorithms and liquidity pools. AMMs are free of intermediaries and operate using smart contracts instead. Further, market makers are replaced by oracles, and a mathematical formula dictates the parameters and rules of trading.

Uniswap is widely considered to be a pioneering AMM. Several popular DEXs emerging throughout the industry get inspiration from the exchange and use the same mathematical formula of “x * y = k”. In this formula, the “x” refers to the amount of a specific token in a pool. The “y” in this formula represents the other token in a trading pair, and the “k” refers to a fixed constant. As an alternative to centralized exchanges (CEXs), AMM-based DEXs have become a staple in decentralized finance (DeFi). In part, this is because users do not need to trust humans to act honestly. Instead, smart contracts “make” the market.

Liquidity Pools

A fee of 0.25% is taken from each trade on the WagyuSwap exchange. Of this, 0.03% is sent to the WagyuSwap treasury, and 0.05% goes towards buying WAG tokens to burn. Liquidity providers receive 0.17% of this amount, which provides an incentive to provide liquidity to the platform.

Also, liquidity providers receive LP tokens proportional to their stake in a pool. For example, by depositing VLX and WAG tokens, liquidity providers receive VLX-WAG LP tokens that represent their share of a pool. Users can then farm LP tokens to earn a yield. Furthermore, adding liquidity is made simple with just a few clicks. Plus, liquidity providers can remove funds at any time with minimal cost. 

Yield Farming

To maximize gains, liquidity providers (LPs) can lock up their LP tokens in a smart contract to participate in yield farming. Locking up LP tokens enables users to earn additional WAG token rewards. This additional incentive aims to offset the risk of impermanent loss, which can result in diminishing returns for liquidity providers.

To use WagyuSwap farms, simply choose the farm you wish to use. If you don't have the necessary LP tokens for your chosen farm, WagyuSwap will prompt you to select "Get (token pair) LP". This will open up the “Add Liquidity” menu. Redeeming rewards is just as straightforward. Simply select "Harvest”, and confirm the transaction in your crypto wallet.

Sizzle Pools

Sizzle pools are the easiest way to earn a passive income with DeFi on the WagyuSwap platform. Simply choose your pool, stake some WAG tokens, and earn more WAG! Sizzle pools offer compounding returns for WAG token staking. Also, users can choose between an automatic re-staking pool or a manual pool. Plus, adding and removing funds from liquidity pools is extremely simple. In the future, we can expect to see the introduction of new Sizzle pools accommodating a wider range of assets. 

Exploring WagyuSwap and the WAG Token - Summary 

WagyuSwap is the first decentralized exchange (DEX) to launch on the Velas blockchain. Furthermore, the WagyuSwap exchange offers a compelling high-speed cross-chain trading experience by providing support for all EVM-compatible blockchain networks via the Swapz stablecoin protocol. Users of the WagyuSwap DEX benefit from ultra-low trading fees with near-instant transaction confirmations. Also, users can enjoy a high annual percentage yield (APY) via staking and yield farming. In the future, we can expect to see the introduction of WAG NFTs, a mobile app, prediction markets, and other exciting features. 

The WAG token is one of many recently trending Velas blockchain-native cryptocurrencies. Thanks to the simplicity and low costs the network provides, the Velas development community is thriving, with a host of applications launching on the network in 2021.

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