Omega (automated token exchange)

🌎Chinese version here. 🚀

🙏 Vote proposal here. ❤️

Brief

Create a protocol on top of EOSIO blockchains that allows automated on-chain token exchange between EOSIO tokens.

This protocol will allow users to contribute to the exchange liquidity pools and earn commissions (in the form of exchange fees) for doing so.

Exchange rates for trades are calculated based on a simple equation: x * y = k . The exchange rate of a token will always be at a particular point lying on the resulting curve of this equation.

Omega is censorship-resistant, has no single point of failure, and completely eliminates rent-seeking intermediaries. It has no native token, no listing fees and the whole source code for all smart contracts and interfaces will be open-source and public.

Solution

Currently, there is no solution for decentralized token swaps on BOSCore. Not only will this proposal create that solution, it will also allow BOS token holders to add liquidity to the pools and earn revenue from the fees generated.

Omega is uniquely differentiated from other DEX projects because it maintains no order book. Omega exchange contracts set prices automatically using a bonding curve mechanism known as a constant product.

A widget that can be embedded in websites to do quick and easy token swaps will be provided in the final solution.

Our solution is highly influenced by the great work done by Uniswap backed by Ethereum foundation with $100,000.

Competitors

In BOSCore there is not another liquidity pool provider that provides the basic functionalities that Omega will bring. On EOS Mainnet there is Bancor. The main difference is that Bancor uses their own token and token holders can’t earn fees adding liquidity to the pools.

With our solution we could allow instant liquidity to BOSCore tokens, and using the powerful IBC we could even add liquidity to EOS/BOS pair (or any other token that it’s transported by IBC.

Another idea that could be possible with our contracts, its to create Initial Coin Offers based on the creation of a liquidity pool for a new token.

Execution Plan

Phase 1: Contracts — 3 weeks

Phase 2: User interface widget + landing page, — 3 weeks

Phase 3: Testing, Bug fixing & Documentation — 2 weeks

Phase 4: Deployment and Launch — 1 week

Fund Release Plan

Budget: 450,000 BOS

We plan to have 2 C++ developers to develop the contracts, 1 UI developer for landing + interfaces and 1 product manager that will test, document and organize project for approximately 3 months duration. We will also use the budget for marketing, integrations and hosting.

Ethereum had last year a grant of 100,000$ for the same project. We believe we can make it for less than half of the Ethereum budget.

Team

The team behind Nebula Protocol ( https://nebulaprotocol.com/ ) are very experienced in develop solutions for EOSIO Blockchains. We have 2 fulltime C++ developers that will take care of the contracts and 1 frontend engineer who will create the widget and libraries needed to accomplish the project.

Relevant Links

https://uniswap.io

https://hackmd.io/s/HJ9jLsfTz

https://ethresear.ch/t/improving-front-running-resistance-of-x-y-k-market-makers/1281

https://firstblock.news/news/46270bbf-6b3d-34ca-83f4-555cfc7162ef

https://www.coindesk.com/bancor-uniswap-dex-competition

https://blog.ethereum.org/2018/08/17/ethereum-foundation-grants-update-wave-3/