Imagine that you are playing a DAPP-based game, you need to buy its services or products, but you don’t have the token for some reasons, such as the token has not yet been listed on exchanges, or it’s only listed on an exchange you never heard of. At this time, you may need to look for OTC trading yourself, register a small exchange and then purchase BTC or ETH and deposit them into the platform to trade the token you need.

Either way, it increases your difficulty in getting the token you need, as you need to spend a lot of time in doing this and you may face OTC cheating, KYC info leaks or small exchange bankruptcy and so on.

Based on this demand, the NEL team developed the NELswap Decentralized Exchange, a trading tool that makes trading safer and easier.

On the NELswaps platform, you can exchange any NEP5 token via NNC with the click of a button. NELswaps provides a very simple and intuitive user interface, and you need the Teemo browser extension wallet to use it. Select the token you want to get, then enter the NEP5 asset you want to pay, and the system will automatically calculate the number of tokens that can be exchanged for you. It goes like this:

Because the entire system fully runs on the NEO blockchain, users have complete control over their digital assets without the risk of being stolen on centralized exchanges.

For any blockchain project operator, creating a trading pair on NELswap is completely free. Project operators and their communities can set the price for their project tokens at a very low cost and create liquidity. The more token liquidity you deposit into NELswap, the better it works and the more people will use it.

Since NELswap uses NNC as an intermediary token. When someone needs to provide liquidity for a certain token, he also needs to deposit a certain amount of NNC as a trading pair to provide pricing and liquidity for his tokens.

On NELswap, any NEP5 token can be exchanged between each other. The system will use NNC as an intermediary when processing the trading pair. It first converts the NEP5 token to NNC and then converts the NNC to another NEP5 token.

As a decentralized exchange, NELswap has the following main features:

1. NELswap does not issue its own tokens;

2. Completely decentralized. Users control their own digital assets, so it’s highly secure;

3. NELswap does not charge any listing fees;

4. Trading fees go to market makers. NELswap operator(NEL) doesn’t collect any trading fees;

5. The market maker provides liquidity to the exchange (simply speaking, someone wants to buy, the market maker sells tokens to you; someone wants to sell, the market maker buys your tokens; of course, within a reasonable price range).

6, NELswap doesn’t have the traditional limit order book (ie, open orders 1–2–3–4–5). After the trader chooses the designated trading pair, the system calculates the real-time conversion price and converts tokens according to the algorithm.

Based on the Nelswap features, we can see that NELswap is not suitable for whale traders. Its core competitiveness is automatic market-making. As traders do not need to wait for the counterparty, and the trading is very fast, it can provide liquidity for any tokens. And it can be embedded in any DAPP to achieve one-click exchange of tokens, which is very convenient.

At present, there is no such exchange in the NEO ecosystem. We believe that with the DAPP prosperity in the NEO ecosystem, NELswap’s unique features will certainly attract many traders who want to quickly and easily obtain various tokens. NELswap will be used by more and more users, and NNC will play an increasingly important role in this scenario.