Ubeswap (OLD)

What is Ubeswap?

Ubeswap operates as a decentralized exchange and automated market maker protocol designed for Celo assets. The platform draws inspiration from various sources, including Uniswap, Sushiswap, Synthetix, and Compound, integrating elements from these to ensure compatibility with a wide array of tools and projects from the Ethereum ecosystem.

The primary objective of Ubeswap is to enhance liquidity on the Celo network. The vision entails creating a world where individuals can seamlessly trade any asset using their phone or browser, free from the constraints of outdated clearinghouse technology and centralized systems. This vision is contingent upon the availability of quality assets for investment. Ubeswap aims to attract liquidity from the entire decentralized finance (DeFi) space, leveraging Celo's rapid transaction times, high block gas limit, and stablecoin system.

How Does Ubeswap Work?

An Automated Market Maker (AMM) operates akin to an order book exchange by featuring trading pairs, such as CELO/UBE. Unlike traditional exchanges, making a transaction in an AMM doesn't necessitate having a counterparty, i.e., another trader on the opposite side. Instead, users engage with a smart contract, which facilitates the creation of the market for the transaction.

Pricing Algorithm

Ubeswap employs a pricing algorithm closely resembling that of Uniswap, although specific protocols may introduce variations in the formula.

In Ubeswap, the pricing algorithm adheres to a formula akin to x*y = k (a fixed constant number). Here, 'x' denotes the quantity of one token in the liquidity pool, while 'y' represents the quantity of the other token. The constant 'k' remains fixed, ensuring that the overall liquidity of the pool remains constant throughout transactions and interactions on the platform.

Liquidity Pools

When you contribute liquidity on Ubeswap, you earn a 0.25% share of all trades involving the pair you added to the pools, proportionate to your pool share. These fees are directly incorporated into the pool, accumulating in real-time, and can be obtained by withdrawing your liquidity.

Currently, the ability to add only two tokens to pools, similar to Uniswap, is imposed due to the relatively low token capitalization within the Celo ecosystem. This limitation is crucial, as adding more tokens to liquidity pools entails substantial risk of impermanent loss for users.

Ubeswap functions by enabling users to provide liquidity in a manner akin to Uniswap's fixed ratio (50/50). This approach facilitates more innovative Automated Market Maker (AMM) strategies that are well-suited for rapidly changing markets like those in the decentralized finance (DeFi) space. For instance, when providing liquidity for the CELO-cUSD pool, you must contribute an equivalent value (in USD) of both CELO and cUSD tokens.

Ubeswap Team Background

Ivan Macalinao - Founder: Ivan stands out as one of the most astute developers in the fields of crypto and blockchain technology. Currently holding three positions, he serves as the Co-founder of Monotone Fund, Co-founder of Saber Labs, and Co-founder of Ubeswap.

Evan Kereiakes - Business Lead: Evan brings over 7 years of experience from his tenure at the Federal Reserve Bank of New York, where he contributed to the foreign exchange reserves management team. His professional background also includes roles at the U.S. Treasury Markets Room and the White House National Economic Council.

Brian Li - Technology Lead: Brian has dedicated his recent years to deepening his involvement in decentralized finance (DeFi) by actively building foundational elements such as Poof.cash, Romulus, Ubeswap, and Nomspace.

Ubeswap's Partners

Some of the most notable partners of Ubeswap are:

1. Celo: a blockchain designed with a mobile-first approach, catering to individuals with mobile phones. The native cryptocurrency, CELO coin, serves as the platform's reserve and governance asset. Its goal is to provide a range of financial solutions beyond the spatial and network limitations of traditional finance, like banks. Celo aims to establish an inclusive decentralized financial ecosystem, allowing end-users to easily participate in the Celo network.
2. GoodDollar: a protocol designed to provide free money as a public good by distributing a daily universal basic income in G$ tokens to anyone who desires it. The mission is to establish a sustainable solution that allows money to circulate freely to those who need it most, serving as a digital peer-to-peer currency for productive use.
3. Toucan: constructing inclusive infrastructure for carbon markets to support a regenerative economy on the open web. The objective is to initiate a financial system that prioritizes the Earth as a vital stakeholder. While acknowledging progress in current climate initiatives, Toucan emphasizes the need to significantly expand existing carbon markets rapidly.

Ubeswap Project Development

Ubeswap V3 introduces enhanced features powered by the Algebra concentrated liquidity protocol to offer users a more efficient and customizable trading experience. Notable upgrades include the ability for users to set their own liquidity range, providing greater control over their liquidity positions. The new pricing curve in Ubeswap V3 enables more concentrated pricing, reducing price slippage.

Key features of Ubeswap V3 encompass the ability to create custom pools in a permissionless manner, a streamlined user interface, and a faster, more efficient trading engine. The concentrated liquidity feature allows providers to specify a price range or "tick" for their liquidity, focusing on areas where they anticipate trading activity. For instance, a liquidity provider might concentrate their provision on a price range between $100 and $150 for a specific cryptocurrency pair, maximizing fees in areas of higher trading activity and avoiding less frequently traded zones.

Ubeswap (OLD) Price Analysis

As of November 24 2024 Ubeswap (OLD) has a marketcap of $13K. This is {{percentagefromath}} from its all time high of $4.12. In terms of its tokenomics, there's a total supply of 100M with 68% currently outstanding. Keep in mind Ubeswap (OLD) has a fully diluted value of $20K 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.