Like the protocol it’s based on, Energiswap functions as a decentralized exchange for swapping any ERC20-compatible token with any other ERC20-compatible token. Using the constant product equation, Energiswap manages liquidity pools of token pairs to allow them to be traded. This removes the need for buyers and sellers to generate demand, locking the pair into a price match determined by the available liquidity that allows for tokens to be easily swapped directly with each other.
This system also helps to combat the liquidity problem that many decentralized exchanges face. In addition to swapping tokens, users can also provide liquidity to the pool for a token by locking down equal amounts of NRG and the token. As an incentive, liquidity providers receive a distribution of the fees generated by trades. This ensures that there is always adequate liquidity in the marketplace.
We have launched Energiswap with a limited selection of tokens available for trade: eDAI, eBTC, eETH, and wrapped NRG (WNRG). eDAI is a synthetic version of the DAI stablecoin that maintains a value of ~$1.00 USD. eBTC and eETH are synthetic versions of BTC and ETH on the Energi blockchain. Users will be able to swap NRG to wrapped coins at a much lower cost than existing decentralized exchanges.