Momentum 6 Portfolio Spotlight: JediSwap
JediSwap will be the first Automated Market Maker (AMM) to run on StarkNet.
Monolithic blockchains, like Ethereum and Bitcoin, suffer from the famous ‘blockchain trilemma.’ A blockchain has three properties: decentralization, scalability, and security. The blockchain trilemma calls attention to the issue that a blockchain can only capitalize on two of those properties and must sacrifice one due to technical limitations.
There are different blockchain scaling solutions like ZK rollups. StarkNet is an example of a ZK rollup that is permissionless, decentralized, and runs as a Layer 2 network over Ethereum. With StarkNet, any dApp can achieve unlimited scale without compromising the security and composability of Ethereum.
Automated Market Makers (AMMs) are part of DEX protocols and rely on a mathematical formula to price digital assets. In the simplest terms, an AMM is like a robot always willing to quote a price between two assets. With an AMM, you can trade trustlessly and provide liquidity to a liquidity pool.
JediSwap will be the first Automated Market Maker (AMM) to run on StarkNet. This AMM will power an instant exchange of assets. JediSwap uses the constant market-making model (x*y=k) to achieve its goals.
How it works
JediSwap on the Testnet
JediSwap launched its Testnet on StarkNet, where users can test the promising AMM.
You can test the product with the following steps:
- You first need to download the Argent X StarkNet Browser wallet. You can then follow the Argent X tutorial to create an account and get an address. You can then make sure that you set your account to Goerli Testnet, and you will be steps away from using JediSwap.
- The next thing you need is test tokens. Luckily, with a single click on the JediSwap website, you can get all the test tokens. Just scroll to the bottom of the Trade page and click on the “Mint Jedi Test Tokens” button. Argent-X will ask for confirmation, just click confirm on the Argent-X popup.
- You are now ready to make your first transaction by choosing the tokens and determining the quantity you want to swap. Just click “Swap” and confirm the tx on Argent-X.
You can also add liquidity by browsing the liquidity pools area:
- First, choose tokens and fill in the amount you wish to provide in the liquidity pool. Hit the ‘supply’ button to add to the liquidity pool.
- All the active LP positions are viewable in the Pool section.
- If you wish to exit an existing liquidity pool, you should click the ‘manage’ button and then ‘remove.’ You will be required to determine the amount you want to remove and approve the transaction.
Once JediSwap comes out of beta, users can swap their assets instantaneously without incurring any gas fees. Users will enjoy all these benefits while still relying on the security of Ethereum as the base layer. Builders can create apps as they leverage the composable nature of JediSwap. There are more than 10 dApps already working with JediSwap.
Mesh Finance DAO
JediSwap is a community-run project with no team and is open source. There are around 5,000 community members on Discord and more than 200 active contributors to grow the protocol. Anyone that wishes to contribute to the growth of the protocol is allowed. The community grants people a chance to learn and build together. Contributors are rewarded with points for early contributors. Contributions will also be rewarded with tokens and NFTs in the future.
The Mesh community has experimented on Arbitrum, Polygon, and Ethereum in the past.
Led by Mudrex team
Prince and Rohit are the leaders at Mudrex, a firm that has processed over $3 billion in trading volume. The organization is backed by Nexus Ventures, Arkam Ventures, Y Combinator, Naval, Village Global, and Tribe Cap. There are more than 200,000 users on Mudrex.
Rohit is an adviser and investor of multiple Web 3 projects such as Questbook, Drepute, Stader, and BIP.so. Rohit also founded a gaming studio, loves coding, writing about Web 3, and hosting and joining Web 3 podcasts.
Prince founded Niffler, started his career as an Algo Trader for Deutsche Bank, and was a tech lead at Tapzo. Prince loves building and hacking.
JediSwap launched on testnet at the start of February 2022. Since then, the project has been tested by more than a thousand people. JediSwap will go live as soon as the StarkNet bridge goes live, which is expected can happen in a few weeks or months.
The following three to six months’ focus will be on improving tokenomics. The platform will also seek to support a broader range of asset swaps. In the StarkNet ecosystem, JediSwap will create public goods that are open source for others to use to develop applications.
Decentralized finance has yet to achieve its full potential due to challenges such as scalability. When combined with AMMs such as JediSwap, scaling solutions will make it easy for users to swap and trade tokens effortlessly and economically. We can only wait to see how the product will impact the DeFi landscape once the Mainnet is launched.