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Everyone can use ETFSwap to get to decentralized banking. It only costs $100 for people to buy 41,050 ETFS coins. The platform uses the strong ERC20 standard, which offers security, value, and a lot of different options. All platform users will be able to buy and sell exchange-traded funds (ETFs).
The ETFSwap token (ETFS) is worth about $2.44 million and is traded at $0.002440 right now. There are a total of 1 billion tokens on the site. ETFSwap is ranked #8961 on CoinMarketCap, but it has built a very complete community. There are volatile ETFs, leveraged ETFs, commodity ETFs, market ETFs, and fixed income ETFs in the scheme. Most of the tokens (70.82%) are held by the top 1% of users, but the beta version looks good. This distribution makes things interesting for buyers who want to get in.
This article goes into great detail about how ETFSwap works at its core. We will talk about its smart contract infrastructure, tokenomics, ways of developing it, and ways to measure its success. It will be hard for the medium in the future. It also has a plan to release a staking app and increase cash pools. By taking these steps, you’ll help the competitive decentralized exchange world grow in the future.
ETFSwap (ETFS) is based on smart contract infrastructure.
Advanced blockchain technology is used by ETFSwap to make trade safe and quick. The site is a decentralized way to trade on the Ethereum blockchain. There are no limits on how users can trade cryptocurrencies for tokenized ETFs.
ERC20 Security and Compliance Checks
ETFSwap works with the rest of the Ethereum environment because it follows the ERC20 token standard. Some methods, such as totalSupply, balanceOf, transfer, transferFrom, approve, and allowance, are needed for this technical framework. These tokens work well with wallets, exchanges, and other systems that support ERC20.
Safety is very important to ETFSwap’s system. Several auditing companies have put the platform through a lot of tests. Cyberscope gave ETFSwap an amazing 94% score for security, which puts it in the top 10% of projects that were checked. Coinscope did both static research and reviews of contracts by hand. They only found two small problems, and the platform passed six important security checks. These checks looked at:
Transfers User Tokens More Than Fees Allowed
- Tokens from Mint
- Sets off tokens
- Lists of people who are banned Deals with
- Comment messages that aren’t clear
This full review proves that ETFSwap’s smart contracts work as they should and don’t have any secret flaws.
How the liquidity pool works for ETF swaps
Liquidity pools make ETFSwap work and let you trade cryptocurrencies for tokenized ETFs. Like with regular ETFs, smart contracts handle the process of creating and redeeming them.
In ETFSwap’s main market, authorized participants (APs) can make new ETF tokens. To do this, they add assets that back up the bonds to the cash pool. They can also get these things back by giving back ETF coins. Large unit sizes help keep the prices of ETF tokens in line with the assets they are backed by.
There are two main jobs for the liquidity pools:
They give traders instant cash without the need for standard order books.
Because they use algorithms, they help find deals.
Traders with big orders can directly access liquidity pools that are deeper. This function helps trading go smoothly, even when there are big positions.
The ETFSwap Beta has an automated market maker (AMM) model.
There is an AMM model in the ETFSwap that changes how trade pairs are priced. Instead of order books, the system sets the prices of assets using math models that are based on the ratios of tokens in liquidity pools.
For every product, the platform is run by the formula x * y = k, which says:
x shows the amount of one asset; y shows the amount of the paired asset; and k stays the same during deals.
With this formula, prices are changed instantly. The price of an object in the pool goes up by the same amount that someone buys it. This system makes liquidity available no matter what the market conditions are. People who provide liquidity get paid to trade, which makes them more likely to add assets to the pools.
The AMM model in ETFSwap keeps prices from moving around during deals. There are 24/7 liquidity pools and staking with up to 36% returns in the beta form on Ethereum Testnet. APRs of up to 87% are possible for users who trade autonomous ETFs.
This method links traditional money-related tools with decentralized money-related tools. Crypto buyers can now use the blockchain to access real-world asset-backed ETFs.
The token economy and deflationary model of the ETFSwap token
ETFSwap’s economic plan is based on the fact that its tokens are deflationary. This produces an ecosystem that is good for the environment and pays off for long-term holders. ETFS is an ERC20 token that works like a deflationary coin and has a maximum limit of 1 billion coins. To make sure that growth and functionality are spread out evenly, the tokens are carefully spread among ecosystem parts of different sizes.
Way to Burn 1% Buy Tax
ETFSwap has a unique “burn” feature that takes tokens out of circulation for good with every buy. People who buy ETFS tokens immediately pay a 1% tax. This tax goes straight to a burn wallet and over time lowers the overall amount of coins that are in circulation. As adoption grows, the planned decrease of tokens makes it so that there aren’t enough tokens. The value of the token might go up because of simple supply and demand.
ETF Swap’s “burn” feature is what keeps it going.
model of deflation. A lot of cryptocurrencies keep making new tokens, which makes them inflationary. To fight market dilution, ETFS goes in a different direction with its managed reduction method. As the number of trades on the site grows, token burning speeds up to match. This starts a loop that keeps going, which is good for people who hold for a long time.
The blockchain completely changes the way the burn works.
See-through. Explorers for the blockchain let investors see how the process works. This plan makes sure that the platform’s goals and users’ goals are the same. By lowering the supply, each exchange helps strengthen the token’s base.
The 5% Sell Tax Reward Pool will be split up.
A 5% sales tax goes straight into a reward pool to work with the burn process. The staking rewards method on the platform is based on this pool. People who own tokens can make idle income that lasts. The 5% fee from each ETFS coin sale is added to the rewards for people who stake.
Token holders get these prizes every month through airdrops. This gives committed participants steady streams of cash. Documentation from the government shows that betting can earn up to 36% APY. People are likely to hold for a long time because of these high rates. People who stake money also get rights to run the business. They can help make ETFSwap’s future by having a say in how the platform is developed.
Because of the way the reward pool is set up, the environment is balanced, and
- Traders who are actively trading make money by selling.
- Long-term users get rewards for both staking and the value of their tokens going up.
- The site keeps its liquidity up by offering incentives to use it.
- How Tokenomics Affects The Stability Of The ETFSwap Crypto Price
ETFSwap’s tokenomic structure is meant to keep prices stable by controlling the number of tokens. To keep the market stable, burn systems and reward incentives work together. When there is selling pressure, more money is added to the prize pool. This makes more money for people who stay in their jobs.
Token sharing helps keep things stable by giving out tokens in different ways. Out of the total supply, 40% is set aside for pre-sale, 24% is used to build the ecosystem, 12% is for liquidity and listings, 6% is for team members, 6% is for marketing and incentives, 5% is for cashback reserves, 3% is for partners and mentors, and 4% is for community rewards. This balanced method stops the concentration of tokens, which could lead to market manipulation.
The negative economics of ETFSwap creates natural systems that keep prices stable. Adoption by the market cuts down on production through burns. This makes things seem less common, which can help when the market is going down. This trait is especially appealing to investors who want to buy assets that are protected against big price changes.
The tokenomics model makes an environment that can keep going on its own. Participation rewards should match the amount of commitment. By matching the needs of traders, holders, and platform developers through financial incentives, ETFSwap creates a strong base for long-term growth in the competitive decentralized exchange scene.
How to Build ETFSwap’s Decentralized Exchange: Materials and Methods
When ETFSwap was being built, they used both new blockchain technology and standard financial ideas. In order to make a reliable decentralized exchange tool for tokenized ETFs, the technical team used complex techniques.
Setting up smart contracts on the Ethereum mainnet
The team used smart contracts based on solidity that are in line with the ERC20 standard to build ETFSwap. To build and test the infrastructure, the programming team used a number of important tools, such as
Truffle is a tool for compiling and deploying contracts. Web3.js is used to connect to the Ethereum network.
Modules for Node.js for the development environment MetaMask for managing accounts while the app is being deployed
Before being put into the mainnet, each contract was tested thoroughly on Ethereum’s Sepolia testnet. The deployment followed standard protocol. When contracts were compiled, bytecode and the Application Binary Interface (ABI) were created, which let people communicate on the chain. The team used a script to set up the token and give it a starting supply of 1 billion tokens.
Liquidity Pool Seeding and the First Distribution of Tokens
To allow trade, ETFSwap’s liquidity pools needed to be carefully “seeded.” The team added GBP 158.83 to the main pools to start them off and give early users access to money. There were several steps to this process:
The team gave 40% of the tokens to the public sale so that people from all over the world could buy them. They set aside 12% for listings and liquidity to build a strong base for trade. By setting aside 4% for community growth projects, the distribution system stopped people from having too much ownership.
Like in standard ETFs, smart contracts control how the liquidity pool is created and redeemed. Authorized participants in the main market help with this process by adding new ETF tokens when they put assets into the pool.
Staking out the development and integration of DApps
The staking decentralized program is the heart of ETFSwap’s ecosystem. The team made an interface that is easy for everyone to use and offers lots of possibilities. Users can earn up to 87% APR per year by:
- Trading fee distribution systems (80% of the fee goes to liquidity companies)
- Different types of token rewards based on the 5% sell tax
Monthly airdrops for individuals who stick with it
To get to real-life asset-backed securities, the platform links up with investment banks controlled by MiCa. Tokenized ETF classes like commodities, stocks, and cryptocurrencies can all be staked by users.
The phase 1 test platform shows that the idea works and lets users swap ETFs and join liquidity pools. ETFSwap is going to start its partnership program and add more features to its trading tool all at once.
The ETFSwap Beta Performance Insights Results and Discussion
ETFSwap’s Phase 1 beta release on the Ethereum Testnet provided measurable performance data that showed why the platform was so successful in its early stages on the market. These measures give us a better idea of where ETFSwap is now and where it wants to go in the world of decentralized exchanges.
How Many Users Adopted ETFSwap During the Beta Version
Ever since its beta start, ETFSwap has caught the attention of 2,928 token holders. Still, only a few banks hold most of the tokens; the top 10 hold 76% of all tokens. The governance of the platform faces both possibilities and risks because of this centralization. According to CoinMarketCap, ETFSwap is ranked #8961 out of over 2,000 other cryptocurrencies. This shows that it is still in its early stages.
Through its platforms, ETFSwap’s community puts socializing first. The platform offers news and educational materials and responds quickly to user questions. More and more people are excited about how the site can change the way traditional ETF trading is done because of this way of communicating.
Trade Volume and Liquidity Growth Trends
ETFSwap has a daily trade volume of GBP 7,155.38, which is pretty good for a new beta. Thereare GBP 31,872.03 worth of trades on the main pair, WETH/ETFS on Uniswap v3. In this way, it is the most important source of cash.
Since its high point of GBP 0.05 at the start of 2024, the token price has gone down about 94.61%. From April 23, 2025, ETFSwap is worth USD 0.0035. During the early stages of new DeFi projects, prices often move in this way.
It was possible to find and fix security holes.
ETFSwap got a great 94% security score from CyberScope’s full audit. It is now in the top 10% of projects that have been checked. The fact that the audit didn’t find any major, medium, or small security holes shows that the platform’s security design is strong.
ETFSwap also used SolidProof to do Know Your Customer (KYC) checks. This provides a completely safe and verifiable trading space that combines the benefits of decentralization with the need to follow the rules.
Problems and Limitations for ETFSwap Crypto in the Future
ETFSwap has strong tokens and good security checks. Still, it has to deal with big problems that could hurt its future in the tough world of DeFi. To get regular users, the app needs to get past a number of technical and legal hurdles.
Barriers to Scalability on Ethereum Layer 1
ETFSwap is limited in how fast it can work because it relies on Ethereum’s base layer. About 27 transfers happen every second (TPS) on Ethereum. This is not even close to the speeds of other networks like Avalanche (4,500 TPS) or Solana (50,000 TPS). When the network is busy, gas fees are high because of delay, and ETFSwap is harder to get to.
The platform is in the well-known “blockchain trilemma.”
Most of the time, you have to give up something to get better decentralization, security, or scale. Ethereum’s plan includes ways to make the network bigger, such as proto-danksharding (EIP-4844). To stay competitive, ETFSwap still needs to add Layer 2 support.
Problems with integrating across chains
As blockchains work alone with few links, the “value isolated island” problem needs to be looked at. There are big security risks with bridge systems, as many bridge hacks have shown. There are more problems for ETFSwap:
- When networks with different validation methods are linked, security risks arise because of differences in the consensus mechanisms between chains.
- There are different levels of finality. Some chains confirm deals right away, while others need more than one check.
- There are still risks with managing private keys on a lot of cross-chain links.
- Without strong cross-chain protocols, ETFSwap will only be able to grow within the Ethereum community. It can’t reach as many people this way.
Risks for Crypto ETF Platforms from Regulators
When it comes to problems, regulation is the most unexpected. Some crypto trading platforms and middle-men are not following the rules set by the SEC, so the agency says it “does not approve or endorse them.” Without correct KYC rules, ETFSwap could get in trouble with the law.
Reddit users have doubts about the site’s reliability. Some people are worried about promises that were broken and money being wasted. This lack of trust, along with the confusion about regulations, makes the situation dangerous. Investors might lose faith quickly.
ETFSwap needs to help people get around these technical limits and legal unknowns. It needs to keep enough cash on hand and keep users interested. The website issues and slow community growth on the platform make investment funds more at risk. The rules for crypto keep changing from place to place. How well ETFSwap changes and stays decentralized will determine how well it does in trading crypto ETFs.
In conclusion
ETFSwap is at a point where things can go either way in the world of autonomous finance, which is always changing. The ERC20-compliant infrastructure of the platform lets it connect traditional ETF trading to blockchain technology, as shown in our research. A buy tax burn mechanism of 1% and a sell tax reward allocation of 5% are used on the site to use deflationary tokenomics. It makes an ecosystem that supports itself, pays holders who hold for a long time, and keeps prices stable.
A lot of hard things are coming up for the medium. Layer 1 scalability on Ethereum caps the number of transactions that can happen at once to about 27 per second. To reach more countries, the platform needs to fix problems with cross-chain integration that put security at risk. As countries around the world make new rules for keeping an eye on cryptocurrencies, regulatory uncertainty could be the hardest problem to solve.
ETFSwap has a security score of 94%, which is very good and puts it in the top 10% of projects that have been checked. This shows that it is serious about security. Nearly 3,000 people have bought tokens in the test version, but the top wallets still hold 76% of the tokens.
On the platform’s roadmap, bigger liquidity pools and better staking methods are given the most attention. ETFSwap stands out because it combines standard money management ideas with cutting-edge blockchain technology. To stay true to their decentralized nature, they have to find a balance between technology growth and following the rules.
For ETFSwap to be successful, it needs to be able to offer a safe and accessible trading setting that combines traditional finance with decentralized features. Users get the best of both worlds: the security of blockchain technology and the flexibility of traditional ETF purchases. In the age of digital assets, this mix could change how owners handle their portfolios.
Common Questions
Firstly, what is ETFSwap and how does it work?
People can swap cryptocurrencies for tokenized ETFs on ETFSwap, which is a decentralized exchange platform. It helps trades happen with smart contracts on the Ethereum blockchain and prices assets using an Automated Market Maker (AMM) model that is based on the number of tokens in liquidity pools.
What are the most important parts of ETFSwap’s tokenomics?
A 1% buy tax burn method and a 5% sell tax that goes into a reward pool for staking are both parts of ETFSwap’s tokenomics. In order to build a deflationary model and encourage long-term holding, these features are added.
Is the ETFSwap program safe?
ETFSwap has been through a lot of security checks and got a 94% score from Cyberscope. SolidProof has also done Know Your Customer (KYC) verification on the site in order to make it a safe and legal place to trade.
What problems does ETFSwap have to deal with?
There are limits on how much ETFSwap can grow on Ethereum’s Layer 1, problems integrating across chains, and legal uncertainty. As crypto regulation changes, these problems could slow down transactions, limit the market’s reach, and make it harder to follow the rules.
What possible advantages does ETFSwap have for users?
People can use ETFSwap to buy tokenized ETFs in a decentralized setting. This combines the security of blockchain technology with the ability to diversify that comes with regular ETFs. The site also offers staking options with the chance of high returns and regular reward payments.