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Working on a functioning bridge between different blockchains is something that many cryptocurrency projects are currently doing. Trying to develop this solution, however, is more difficult as one would think. We have already seen many of them fail, while others were hacked or compromised due to their bugs.
Thus, any ambitious platform, exchange or cryptocurrency project that is looking to find the best solutions for easy swaps of cryptocurrencies across different chains needs to be not only thorough, but also reliable. Anyswap aspires to be exactly that.
What is Anyswap?
Anyswap (ANY) is considered by many to be one of the truly decentralized finance (DeFi) projects. While the biggest boom of this category of cryptocurrencies happened a few months back, the sector is far from being dead. On the contrary, there are still projects that are developing their solutions, products and services and Anyswap is one of them.
Anyswap was renamed to Multichain (MULTI) at the end of March of this year, however, most of the crucial features remained the same as Anyswap. Nevertheless, the project is still more recognised as Anyswap, which is why we will keep referring to it as such.
Anyswap is a fully decentralized cross-chain swap protocol based on Fusion DCRM technology. The DRCM, Decentralized Control Rights Management technology of Fusion allows for better management of the flow and movement of the tokens between the blockchains. While this sounds like a very complicated definition, in essence it states that Anyswap is a solution for people to swap various coins between different blockchains.
This is allowed thanks to ECDSA and EdDSA signature algorithms. As of now, the cryptocurrencies that are applicable for these types of swaps are the likes of Bitcoin, Ethereum, Tether, Ripple, Litecoin and Fusion. That is not all, Anyswap also supports 6 distinct chains such as Ethereum, Binance Smart Chain, Fantom, Polygon or Fusion.
Fusion Network enables processes such as private key sharding to be implemented to Anyswap. The private key sharding feature allows for splitting of keys into several bits and managing them through various network nodes. This thus increases and, some believe, guarantees that the assets on the network are safe. Moreover, it also checks that different parts of the private key are never combined together during any activity, regardless of a transfer or trade. Once again, improving the overall security.
The safety is also guaranteed through the smart contracts of this platform being open-source. This decision not only enhances the reliability of the project, but also allows for individual audits, which have the potential to also improve the security through debugging or flagging of bugs.
However, the open-source feature of Anyswap helps with something else; and that is the decentralization itself. Since the project is open-source, anyone can check and verify for themselves if it behaves the way it is supposed to.
For instance, anyone can check whether the rewards are distributed like promised. And since the rewards are a huge part of the ANY token, which we will introduce shortly, it is very important that they work without any problem for this project to be successful.
Different features of Anyswap
Currently, Anyswap offers different features and services to its users. These include:
- Decentralized cross chain bridge which allows users to deposit any coins into the protocol and mint wrapped tokens in a decentralized way.
- Cross chain swaps that give an option to immediately swap from one coin to another.
- Programmed pricing and liquidity systems which ensures that the liquidity provider could add and withdraw liquidity into swap pairs while the programmed pricing system is based on the overall liquidity provided.
- Anyswap also allows for Wallet Supports such as Metamask and Ledger, but with time, more hardware wallets are expected to be added. Moreover, there is an option of API, which will make the Anyswap protocol compatible with any wallet.
Tokenomics of Anyswap
Tokenomics of this project is probably one of the most interesting parts of it. Anyswap has a very unique approach to the distribution of its ANY token, which will be highlighted in-depth below.
But, before we do that, let’s first see what the token utility is like. As defined by Anyswap, the ANY tokens can be used for voting to add a supported chain, for electing Anyswap working nodes (AWN) and to vote for changing governance rules proposals. It also gives the authority to its holders to choose which currencies should be featured in the Anyswap decentralized exchange (Anyswap DEX). In this sense, ANY acts very similarly to any governance token.
The strong community around this token is first and foremost easily depicted by the number of Telegram followers, which is the main social media channel that the project uses. More than 25,000 members have joined the official Anyswap Telegram channel. Moreover more than 2,000 users use this chain daily with an estimated daily volume of almost 50 million dollars.
Some red flags
According to CoinMarketCap, the market cap of this token is about 83 million dollars, with almost 19 million ANY in circulation. This would mean that the daily volumes of the platform are equal to more than 60% of its overall market capitalisation. While this is not impossible, not even the biggest cryptocurrencies get to this high daily volume’s ratios, when compared to their overall market cap. And that includes Bitcoin (BTC), Ethereum (ETH) or stablecoins such as Tether (USDT) or USD Coin (USDC).
Speaking of rather suspicious numbers, after looking at the explorer of Anyswap, it seems like the overall token is doing incredibly well. With a total transacted volume of more than 85 billion dollars, Anyswap should be considered one of the biggest bridges out there. Yet, it does not feel like it since its community is not somehow incredibly big, although it is sizeable.
The price of ANY token is somehow not high as well. With 19 million ANY in circulation and 83 million dollars, the price of one token is about $4.40, ranking it at 281st place in the CMC according to market cap. Hardly the best result.
Moreover, with only 24 nodes, we can barely speak about Anyswap being decentralized or distributed. For that, the number of nodes would need to rise higher significantly and probably in a very short period if the project really wants to make it before its competition starts to rise.
The 15/85 split
The total supply as well as the maximum supply of ANY was set to be 100 million. It was also specified that there will not be any pre-sale or fund raising, but the beginning will be set with the initial supply of 15 million ANY tokens distributed in the following way.
Community and the ecosystem will receive 10 million ANY tokens, which should help with the growth of the Anyswap community and which will be managed by the team behind this project.
The remaining five million tokens will be distributed to the “Team Initial Liquidity,” which should provide enough liquidity and funds for the team to start the project.
The remaining 85 million ANY tokens, which are not part of the initial launch distribution, will be than allocated to block rewards and distributed in the following manner:
- “Cross Chain DCRM Node Rewards” will be given 10 million ANY tokens. These funds will be used to motivate Anyswap Working nodes (AWN) to help with the stability as well as security of the cross-chain service.
- “Liquidity rewards,” which will be used to motivate liquidity providers will be allocated 15 million ANY tokens. These should encourage people to provide liquidity for the swap pairs such as BTC, ETH, USDT and all the others.
- The same number of tokens, 15 million ANY, will also be given to “Team Rewards.” This is simply used to motivate the team as well as the future team members to follow their road map and deliver on their promises.
- About 20 million ANY tokens will be then given to the shareholders of Anyswap company, while more than 25 million tokens will be allocated to the “Swap and Trading” fund, to motivate the swap traders to be active.
A brief recap of all of these information can be found here:
How rewards are calculated and distributed
The “Liquidity Rewards” with 15 million ANY tokens will be distributed once every 24 hours. Every 6,600 blocks (about 24 hours), 9,900 ANY tokens will be distributed to liquidity providers as a reward for their liquidity in proportion to the size of the liquidity they provided. The lowest liquidity provided will be used for calculation of all the rewards.
The same logic is also applied to “Cross Chain DCRM Node Rewards.” These are once again calculated on a basis of 6,600 blocks (approximately one day), but the reward is different. Node runners will receive 6,600 ANY. Until the network gains a sufficient number of node runners, these will be rewarded to liquidity providers.
There are two more distributions that will happen every day (6,600 blocks). These are the “Team Rewards” which will be in the amount of 9,900 ANY and “Anyswap Company” rewards which will be 13,200 ANY every day.
“Swap and Trading” rewards are calculated on a basis of 100 blocks. This means that every 100 blocks, 250 ANY will be rewarded to swap traders and again, each of them will be rewarded in proportion to their trading volume. If, for any reason, there was no trading at all during the 100 blocks window, the reward will be split into two. 150 ANY will go to liquidity providers and the remaining 100 ANY will be given to AWN node runners.
Overall, ANY charges fees in the size 0.4% for every swap transaction. This fee is divided into 0.3% which will be allocated to the liquidity providers and the remainin 0.1% which will be given to Anyswap Company. In addition, in case of a use of a bridge to lock out wrapped assets, an additional 0.1% fee will be added on top of the 0.4%. This will go straight to Anyswap Working Nodes that support the specific chain and must cover the fees of the given chain.
With a rather complicated and complex structure of tokenomics, Anyswap, now known as Multichain, is trying to distribute the tokens fairly to the community according to how everyone is contributing back. While this system might work, it seems, at least at the first glance, that it might be a tad too complex. Nevertheless, the project is up and running and is seeing some very interesting numbers when it comes to the use.
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