In this section of the documentation, the core team aims to provide sufficient supporting information to OpenSwap users to learn more about OpenSwap Liquidity Queues.
1. Who audited the contracts for Liquidity Queues?
OpenSwap’s initial set of smart contracts have been audited by Certik and our secure adaptors are also audited and running under the “Certik Shield” program. In addition, the smart contracts have also been successfully peer-reviewed by another 3rd party team. As new features and contracts are added, we will continue to ensure that audits be carried out.
2. For the Spot Queues, are all the Oracles from Chainlink?
OpenSwap’s secure adaptors (SAs) can connect with any oracle provider. Our initial set of secure adaptors will pull pricing data from ChainLink; however, new (SAs) can be created and as long as they pass a security audit and receive a security score, they will be eligible for the community to vote them into place.
3. How can front-running be prevented on the Spot Priced Queues?
Circuit breakers within the SAs will focus on preventing front-running. A key approach OpenSwap will initially use, is to do a check that the oracle price is within a certain threshold of a secondary pricing source that will be more real-time (i.e. Pricing from a leading DEX or CEX). In events of sharp market rises or drops, trades will not be consummated.
4. How can I know how much OSWAP do I need to stake to get to the front of the Spot Priority Queues?
When creating a queue order on the OpenSwap DApp, you will be provided information on your queue position based on the # of OSWAP that you propose to stake into the order.
5. How can I get priority prior to the IDO of OSWAP since there are no OSWAP tokens available?
In the period between the launch of the priority queues and the IDO, all queues will be on a “First Come First Serve” basis, so users will NOT be able to use the priority feature just yet. Users can consider this period as a soft-launch phase, and during this phase, the OpenSwap team encourages users to give us their comments by contributing to the OpenSwap Telegram communities.
6. Can other projects use the Secure Adaptors?
Yes. The secure adaptors are part of a larger framework called the secure adaptor protocol which provides a structured way to package up oracles into a safe building block for DeFi projects.
7. How would Hybrid Routing work?
Hybrid routing means that a swap will evaluate both AMM pools along with available Queues to identify the most cost-effective swap. We believe that when queues are available, the ‘no slippage’ and ‘lower transaction fees’ will make a Queue-based swap a better option for traders. Please see the write-up on Hybrid Smart Router for more details.
8. Can other projects access the OpenSwap liquidity queues?
Yes, it is possible. However, for security reasons, only whitelisted contracts will be able to interact with the liquidity queues. The whitelisting is managed through community governance, so any project can stake OSWAP and propose to add themselves into the whitelist.
9. Can Liquidity Queue funds be used in flash loans?
No, liquidity queues will only interact with whitelisted contracts that are voted into place through the community governance process.
10. How does the Liquidity Queue concept compare to order books?
Order books by their nature facilitate price discovery through bid and ask orders and the exchange uses order matching technology to consummate trades.
In the case of our Spot-Priced Liquidity queues, they behave more like a decentralized OTC desk. The Spot-Priced queues do not do price discovery and rely on a secure adaptor mechanism that uses either oracle provided spot prices or market-maker-defined offers to enable trades.
In the case of pegged queues and group queues, it can be said that they can be considered a ‘flat priced’ order book.
In the case of Offer-Priced queues, the ‘offers’ have a resemblance to order books, but the matching mechanism more resembles an OTC RFQ process.
11. Can Spot-Priority Queues be visualized as FIFO OTC order books?
Yes, this is a way to look at it. Essentially, market makers are providing their liquidity to be sold at the current market price but it may take some time for the trade to occur based on the demand from the taker-side and position on the queue.
12. Is it possible to ‘mine’ liquidity queues by participating on both sides of the queue to earn transaction fees?
Yes, it is possible and in fact, our protocol allows liquidity providers to have their trade proceeds enter into the opposite queue so that the provider’s liquidity can cycle back & forth between the 2 sides of a pair’s queues with the primary goal of earning transaction fees. Our platform supports this, but it is up to the risk tolerance of the liquidity provider whether they want to use this feature as it may result in impermanent loss.
13. What happens to the spot-priced queues when there is extreme volatility in the market?
For all the ‘spot market’ queues, the secure adaptors are expected to have circuit breakers in place to stop trades when the Oracle price goes beyond a certain threshold of other reference prices (i.e. price found on pancake swap or other real-time references). Our initial secure adaptors will all have these circuit breakers in place and thus in times of pricing volatility, queue-based trades will likely be offline until the market pricing settles down.
Note, that this will not apply to ‘pegged queues’ as those queues will always operate as long as tokens are available in the queue. Likewise, ‘offer priced’ queues will depend on the offer prices.
14. What utilities does the OSWAP token have with respect to liquidity queues?
OSWAP tokens can be staked to gain priority on the spot-priced queues. More importantly, OSWAP tokens need to be staked to propose and add new queues and secure adaptors to the platform. It is envisioned that user communities will design their own queues to fit their needs both in terms of logic and in terms of tokens supported, and thus will require OSWAP tokens to onboard the queues.
We always encourage community members to learn more about OpenSwap Liquidity Queues and partake in OpenSwap community discussion, please join our telegram group: https://t.me/openswapdex
To interact with other existing products, please explore the links below:
OpenSwap Exchange: https://www.openswap.xyz/#/swap
OpenSwap Pool: https://www.openswap.xyz/#/pool
OpenSwap Staking: https://www.openswap.xyz/#/staking
OpenSwap Liquidity Queues: coming soon!
OpenSwap Yield Farms: coming soon!
OpenSwap Inter-Chain Bridge: coming soon!
More information about OpenSwap Liquidity Queues will be shared with the community as the project develops. In the meanwhile, please feel free to follow us on Twitter to receive the latest news and updates from OpenSwap: https://twitter.com/openswapdex