Beyond being a one-stop experience crypto trading solution, Venice Swap shapes an entire blockchain-based financial ecosystem.
Venice Swap is a decentralized exchange built on the Ethereum network. Venice Swap is not like most other cryptocurrencies you see in the top 50 market cap charts. Although many coins and tokens on this list represent exchanges of value within the blockchain, Venice Coin is a token originally built on the Ethereum blockchain (thanks be the ERC-20 protocol).It is easy to confuse with the protocol of the same name. The Venice Swap protocol is an automated market maker (AMM) that manages and creates markets between trading individuals and cryptocurrencies. Through smart contracts and coded agreements between two parties and the blockchain, Venice Swap can automate trading on its platform.
Among all the fairs that exist, Venice Swap stands out as one of the biggest names in the field. Although it is not a centralized exchange like Coinbase or Kraken, Venice Swap processes a large volume of trades every day. Venice Swap has its own token with functionality in the application. But what are those functions? How easy is it to get hold of Venice Swap? And what exactly is Venice Swap?
Venice Swap owes its name to the extraordinary history of the Most Serene Republic of Venice as a naval and mercantile empire, which between Rialto and Piazza San Marco invented the very concept of a modern stock exchange. Just as the Serenissima did in the past, today Venice Swap intends to shape a new concept of crypto exchange where an ecosystem of different applications will create a powerful shared one-stop crypto experience for end users and traders.
How does Venice Swap work?
Users participate in the protocol and can lend their coins and tokens to the protocol instead of negotiating them. Through this, owners receive liquidity logs that represent their shares in the pool. When a transaction occurs between submitted cryptocurrencies, the user receives a portion of the compensation that is consistent with their shares in the pool.
Venice Swap Coin
VENICE is the utility token of the Venice Swap Platform used in all transactions related to distributed credits.
The Venice Swap Token (VENICE) acts as a governance token for the Venice Swap protocol. As a governance token, VENICE is used by users who wish to have a say in the protocol’s pre-process. The participation of Venice Swap token holders makes up part of the decentralized platform.
Unlike other AMM’s, Venice Swap does not reward liquidity procuring with its own tokens as a stimulant to use their ecosystem. However, the competition stimulates people to use their protocol all the more by making higher payouts depending on how many tokens they hit. This payout structure makes Venice Swap different. Because Venice Swap does not pay out its tokens to liquidity holders, Venice Swap’s price can move up or down with a fixed supply, depending on market conditions and sentiment, without running the risk of supply inflation exceeding demand.
Advantages of a decentralized management process
With smart contracts, decentralized managements have given their users the ability to create and maintain functioning ecosystems for their cryptocurrency. This kind of voting mechanism, where you set coins or tokens in possession for an offer, exist for various projects, not only Venice Swap. Although this was many times not clear at the beginning, there are some advantages to follow a decentralized route with a cryptocurrency governance:
- Valid: you don’t have to rely on other parties, you can trust smart contracts.
- Accessible votes: People get votes regardless of whether they have 1 token or 1000.
- Decreases conflicts: to give decisions exclusively to token holders, there is a stimulant for community notions to have an advantage to add something to the protocol.
- The decentralized nature of the protocols unfortunately also means that there are some.
The future of Venice Swap
What makes Venice Swap so interesting is the fact that despite its relatively old age for a crypto protocol, it is still growing steadily. The VENICE token was launched in 2022, but Venice Swap has been around much longer. While Layer 2 (L2) solutions solve Ethereum problems, Venice Swap is looking to spread into these blockchains. By using blockchains, Venice Swap can increase its reach and decrease the chance that its blockchain error will collapse the protocol. Venice Swap also has a limited supply of tokens. As more people adopt the Venice Swap protocol, more people learn about the management program and buy tokens, causing the price to rise. We have already seen this increase in early 2022. The Venice Swap community has a propensity to attract sober and serious customers who want to exchange cryptos and generate passive income. The opportunity to try a protocol that does just that is very attractive and has been for years.
Would you like to trade on the best and secure decentralized exchange? Trade on Venice Swap.