KimchiSwap offers non-custodial staking, token holding, swapping, liquidity provision and market creation services. This platform has smart-contract administrative functions such as automated smart-escrows, smart-swaps and smart-locks, event releases and cross-chain integration. Through using decentralized applications, it eliminates the traditional intermediary role.
In this way, KimchiSwap allows entities and individuals to execute smart-contract based agreements in a cost effective, transparent and convenient manner.
In simple terms, KimchiSwap enables:
- Individuals and entities to develop dApps on its API and platform’s UI and code,
- Participants to create markets, own tokens and get layer 2 scaling services,
- Users to initiate escrow funds add-ons.
Apart from these, KimchiSwap has a layer 2 scaling functionality, which enhances frictionless swapping of tokens at low cost. Basically, it operates in a similar manner as other Swaps’ UIs, such as Uniswap, with automated token exchange systems running on the ethereum blockchain.
KimchiSwap has the technology and capability to meet the market demand. For instance, it has a reliable smart contract database and distributed ledger.
Distributed ledger: KimchiSwap exists on the ethereum blockchain based distributed ledger, thus providing immutable and transparent transactions.
Interactive Web3 dashboard: This interactive dashboard helps users to access KimchiSwap functionalities conveniently. Their web wallets interfaces smoothly with it.
Smart Contract data base: The protocol has several smart contracts which support essential services such as escrow, time release and subscription payments, among others.
ERC20 Swap Token: The platform uses the token to reward liquidity providers. Also, token holders vote during the decision making process.
Besides its high technology, the platform has important features which capacitate it to meet its mandate, enshrined in its whitepaper.
Trustless: The smart contract controls all the platform services such as swapping. Therefore, every user’s input determines the transaction or output. Thus, it is impossible for anyone to manipulate the logic of the contract. For example, locked tokens are safe as they have an audit code inside the KimchiSwap protocol.
Layer 2 scaling mechanism: Because of using the layer 2 scaling mechanism, transactions are fast and comparatively cheap since they take place on the off-chain layer, leaving layer 1 to handle security issues.
Privacy and security: The KimchiSwap products and network are secure due several reasons. First, the protocol is non-custodial, meaning that KimchiSwap does not access locked assets. On the contrary, owners of the tokens, use their private keys to unlock them. Also only the users can handle transaction data.
Secondly, KimchiSwap code governs all transactions resulting in total compliance and transparency.
Any platform user can provide liquidity through staking KSWAP tokens. In return, the stakers receive rewards for parting with their liquidity. The reward comes from a percentage of the trading fees. As expected, the platform distributes the liquidity reward in proportion to the quantity of token which the user has staked.
As mentioned above, KimchiSwap has its internal token, the KSWAP which exists on the ethereum blockchain. In fact, it is a utility ERC20 token, used interchangeably with ethereum as transaction fee. The platform also uses the token for discounts and payment of dividends.
It is worth noting that, the total token supply is 1 million KSWAP.
According to the whitepaper, a token network is only as strong as its community. This shows the commitment that KimchiSwap has on building a large community. To achieve this, it engages as many people as possible.
So, in line with its focus of creating a large community of people who believe in its mission, it has created many platforms for engaging with all potential customers.