ParaSwap

What is ParaSwap?

ParaSwap aims to deliver the best market prices by aggregating across multiple decentralized exchanges, market makers, and lending protocols. The project's API allows users to fetch optimal prices for swapping from one token to another and then build transaction data for on-chain execution. Currently, ParaSwap supports EVM-based networks such as Ethereum, BSC, Polygon, etc., and tokens following the ERC20 standard.

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Recent Video Interview

Main points of the interview:

• Compares Paraswap with competitors like 0x Matcha, Kyber, and 1inch.
• Paraswap stands out with its multi-chain presence and unique RFQ system.
• Despite similar VCs backing multiple projects, competition remains fair and driven by long-term goals rather than short-term pressures.
• Paraswap’s focus on micro-optimizations and strong ecosystem connections.

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About the Protocol

ParaSwap's mission is to drive DeFi participation by offering secure, intelligent, and optimized trading solutions for individuals and institutional traders to tap into fragmented liquidity pools. It provides a robust API for smooth integration into dApps and wallets, advanced charts, multi-chain support, on-chain RFQ, yield optimizer, and secured and audited smart contracts.

ParaSwap integrates with various DeFi apps, protocols, and tools including MetaMask, Ledger, Aave, Enzyme, Core, and Argent. The mobile application combines ParaSwap’s ecosystem and features with crypto management tools, allowing users to buy, store, manage tokens across multiple networks, and trade NFTs efficiently. The backers of ParaSwap includes CoinGecko, Alliance, Morningstar Ventures, Blockchain Capital, DeFiance Capital, CoinsFund, Arrington Capital, and more.

How does ParaSwap work?

Users input the token pair and desired amount, and ParaSwap fetches prices from available pools, suggesting an optimal route for trading. Once confirmed, the swap occurs on-chain, with users receiving their tokens. ParaSwap also offers a gas refund program and facilitates P2P NFT trades.

ParaSwap Limit Order Protocol

ParaSwap Limit Order Protocol consists of smart contracts developed by ParaSwap and available across various blockchain networks including Ethereum, Polygon, Binance Smart Chain, Fantom, Avalanche, Arbitrum, and Optimism. The protocol's goal is to become a public good allowing anyone to interact and build decentralized applications (dApps) in a completely decentralized manner.

Key Features

• Enables ERC721 NFT limit orders, peer-to-peer, RFQ, and OTC trading.
• Offers top gas efficiency, with ParaSwap limit orders being 6% more gas efficient than 1inch and 8% better than 0x.
• Provides greater flexibility for users, allowing token-to-NFT, multiple token-to-NFT trading, and NFT-to-NFT swap.

How can it be used?

ParaSwap Limit Order Protocol can be accessed via ParaSwap's web and mobile apps and through ParaSwap Limit Orders API. Limit orders are created and stored off-chain, signed according to EIP-712, and recorded on-chain once filled. It currently supports Ethereum, Arbitrum, Avalanche, BSC, Fantom, Optimism, and Polygon, along with ERC-20, ERC721, and ERC1155 tokens.

Fees and PSP Token

ParaSwap currently doesn't charge fees for its services, but interacting with it incurs gas costs paid in ETH. The PSP token facilitates coordination of the ParaSwap DAO, which oversees the ecosystem and allocates budgets from the PSP ecosystem reserve. DAO participants engage in proto-governance and utilize tools to adjust protocol parameters and form executive committees.

Project Development

ParaSwap, a DeFi aggregator and middleware, recently expanded its support to eight chains by releasing on Polygon zkEVM, its first deployment on a ZK-Rollup. Utilizing effective routing technology, ParaSwap automatically identifies the most efficient asset-swapping methods across DEXes and liquidity sources, resulting in gas cost savings and improved pricing compared to alternatives. As of August 2023, ParaSwap ranked as the second largest aggregator by volume, exporting approximately $1.45 billion in volume.

This deployment on Polygon zkEVM was achieved through a partnership with QuickSwap, a leading decentralized exchange on Polygon. By integrating ParaSwap's technology into its internal routing, QuickSwap enhances zkEVM pool liquidity efficiency while providing optimal trading execution to users. With ParaSwap's technology, users on Polygon's Zero-Knowledge rollup experience rapid transactions while maintaining Ethereum's trust and decentralization. This release extends ParaSwap's deployment to eight chains, including other Ethereum-based rollups, and introduces a Social-Escrow model where users can boost their PSP stake and receive a share of protocol-generated revenue.

ParaSwap Price Analysis

As of November 24 2024 ParaSwap has a marketcap of $29M. This is {{percentagefromath}} from its all time high of $2.10. In terms of its tokenomics, there's a total supply of 1.8B with 85% currently outstanding. Keep in mind ParaSwap has a fully diluted value of $35M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.