In this article, we introduce UBE, the World’s First AMM (Auto Market Marker) in the Celo ecosystem.
Ubeswap is a decentralized exchange and automated market maker (AMM) protocol for Celo assets. At its core, Ubeswap enables Celo users and applications to trade between any two tokens based on the Celo Blockchain. Ubeswap launched in February 2021.
Ubeswap is based on elements from Uniswap, Sushiswap, Synthetix, and Compound. This is to ensure that the Ubeswap ecosystem can support as many existing tools and projects from the Ethereum ecosystem as possible.
Pricing algorithm #
Ubeswap has a pricing algorithm nearly identical to Uniswap. This formula may differ depending on the protocol.
Ubeswap defines the cure algorithm by following a formula similar to x*y = k (fixed constant number), where x is the quantity of one token in the liquidity pool and y represents the quantity of the other. In this formula, k is a fixed constant, which means that the overall liquidity of the pool must always be constant.
Liquidity Pools #
By adding liquidity on Ubeswap, you will receive 0.25% of all trades involving the pair you added to pools, according to your pool share. Fees are added to the pool, accrue in real-time, and can be claimed by withdrawing your liquidity.
You can only add 2 tokens to pools like Uniswap at this time because the capitalization of tokens in the Celo ecosystem is still low. As a result, adding more tokens to liquidity pools is extremely risky by impermanent loss for users.
Ubeswap is quite similar to allowing users to provide liquidity to pools with a fixed ratio (50/50). That makes more innovative AMM strategies suitable for fast-changing markets like DeFi. For example, if you’re providing liquidity for the CELO-cUSD pool, you have to provide an equal value (in USD) of CELO and cUSD tokens.
What is the UBE token? #
UBE is the governance token of Ubeswap. Ubeswap rewards liquidity providers with UBE tokens.
UBE’s Key token metrics are listed below:
- Token Name: Ubeswap.
- Ticker: UBE.
- Blockchain: Celo.
- Token Standard: cERC-20.
- Contract: 0x00be915b9dcf56a3cbe739d9b9c202ca692409ec
- Token Type: Utility, Governance.
- Total Supply: 100,000,000 UBE.
- Circulating Supply: 33,000,000 UBE.
UbeSwap’s UBE token allocations is as follows:
- Mining Reserve: 34%.
- Partnership & Ecosystem: 30%.
- Team & Advisors: 13%.
- Early Supporter & Strategic Investors: 12.7%.
- Celo Reserve: 8%.
- Liquidity: 2.3%.
UBE Token Release Schedule #
A total of 6 million tokens will be distributed in the first year and then nearly all tokens will be released gradually until the end of Year 3.
Ubeswap rewards liquidity providers weekly with UBE tokens. Some of the UBE Token use cases are:
- Protocol Incentives: Rewarding liquidity providers for their contributions by staking tokens in the protocol.
- Governance: Active stakeholders and liquidity providers are actively engaged in the process of discussing, voting for protocol upgrades.
- Setting the base network swap fee in Ubeswap.
How to store UBE Token #
You can store UBE on any wallet with these steps:
Step 1: Open your Wallet & click Receive on the home screen.
Step 2: Search for the UBE Token.
Step 3: Click on the correct result. Make sure that you copy the correct wallet address and send UBE to this address.
UBE Roadmap #
Going forward, Ubeswap will remain committed to providing decentralized liquidity to the Celo community and beyond.
Step 1: Expanding the team and bringing on key contributors in preparation for the launch of the community partners program (2,000,000 UBE to be awarded).
Step 2: Ubeswap V2 (version 2) is being developed for leverage yield farming, and the new engine may tokenize other assets such as NFTs, Stable Assets.
Step 3: Upgrading cross-chain bridges with Ethereum, Solana to utilize more liquidities, allowing new Celo assets to be supported.
Step 4: Increase the number of available on-ramps and wallets, as well as front-end incentives.
Step 5: Attain true DAO (decentralized autonomous organization) status. Ubeswap will then be completely decentralized and community-run.
- Ivan Macalinao – Founder: Ivan is one of the sharpest developers in crypto- and blockchain technology. He has 3 current jobs including Co-founder at Monotone Fund, Co-founder at Saber Labs, and Co-founder at Ubeswap.
- Evan Kereiakes – Business Lead: Evan worked at the Federal Reserve Bank of New York for over 7 years on the foreign exchange reserves management team. He also has experience at the U.S. Treasury Markets Room and the White House National Economic Council.
- Brian Li – Technology Lead: Brian has spent the past years immersing himself in DeFi by building primitives like Poof.cash, Romulus, Ubeswap, and Nomspace.
Is Ubeswap a good investment? #
Ubeswap is one of the Celo ecosystem’s first AMM projects, so Ubeswap has the advantage of being a pioneer compared to other competitors in the same ecosystem.
Ubeswap’s Total Value Locked (TVL) is currently about $71 million, which increased over 5,000% in the last five months. The TVL of the Celo ecosystem will continue to develop in the time to come, therefore investing in Ubeswap is a viable alternative.
Disclaimer: This is not Financial Advice. Investing in Crypto contains hugely high risks, and you should only invest the fund you are willing to lose.
Similar Projects #
By looking at similar projects, you can compare Ubeswap’s product quality and the possibility of a future price increase. Other projects that also provide similar AMM services as Ubeswap include:
- Ethereum: Uniswap, Sushiswap, Curve,
- Binance Smart Chain: PancakeSwap, Biswap,
- Solana: Raydium, Serumswap,
- Polygon: Quickswap,
- Avalanche: Pangolin, Trader Joe,
Celo is the ideal blockchain for modern decentralized financeーmobile-first, quick to reconcile transactions, with gas fees of less than a tenth of a cent. Additionally, as a fully EVM (Ethereum Virtual Machine) compatible blockchain, Celo is one of the easiest blockchains for Solidity developers to build on.
DeFi on Celo is still in its infancy. Because there is no unified exchange for Celo assets, it’s near impossible for new tokens to get liquidity. Furthermore, there are few investment opportunities on Celo, which provides little incentive to keep assets on-chain. To fulfill Celo’s mission of building a better, more equitable financial system, there needs to be a strong liquidity foundation to support its growing DeFi ecosystem.