O3 Swap Token (O3) is an application token released by O3 Swap. It acts as a key mediator in advancing the growth of the O3 Swap network. Under the O3 Swap economic model, participants and developers are encouraged to support the maintenance of the broader ecological network through token community governance.

Summary

O3 Swap is a proprietary cross-chain aggregation protocol created by O3 Labs. Its goal is to let users access cryptocurrency-based financial services, including swapping digital assets inside their O3 Wallet. This approach benefits from the enhanced safety and security offered by decentralized storage and protection models. The platform also supports cross-chain swaps, enabling exchange settlements without the constraints of a single, isolated blockchain network. The “cross-chain” concept reflects that the swap is performed after assets move across two or more separate blockchain networks. In a cross-chain swap, the starting asset and the destination asset are deployed on two otherwise non-communicating chains. As decentralized finance (DeFi) protocols evolve and lending, exchanges, derivatives, and related markets continue to mature, the O3 Swap protocol-along with its companion decentralized wallet software-provides a one-stop aggregation and exchange platform for users, while giving developers access to an open, distributed, unlimited, and secure trading environment.

Features

Permissionless, Anti-censorship: Anyone can use O3 Swap in any setting without needing permission and without a KYC review.Liquidity Aggregation: Users can trade at the lowest available rate and through the most efficient trading path by connecting their own decentralized wallets.Cross-chain Exchange: We deploy all widely proven and possible cross-chain solutions through our aggregation protocol, supporting cross-chain transactions. Users can freely swap multi-chain assets with one click.Community Drive: Driven by the O3 Swap Token issuance and economic model, decentralized governance and community-led development are enabled.

Functional Modules

Layer Structure

O3 Swap relies on a four-layer design to maintain the integrity and balance of information in the liquid market, helping users get a safe and efficient trading experience.

Network Layer: Serving as the foundation for O3 Swap’s cross-chain protocol, it aggregates high-quality public chains and ecosystem chain systems in the market. This includes Ethereum, Binance Smart Chain, Neo, Huobi ECO Chain, and reputable layer 2 projects, enabling cross-chain trading.Market Liquidity: By aggregating multiple liquidity sources, O3 Swap can determine and recommend the best exchange quote for users.Settlement Layer: Using private-key signature authorization, the settlement is carried out through smart contracts. In addition, cross-chain protocols and cross-chain pools support users in completing cross-chain asset swaps and settlements.Application Layer: Developers receive a complete service API for integration into different applications, while users get a convenient and user-friendly operating platform.

System Design

O3 Swap’s primary functional modules are the exchange aggregators (O3 Aggregator) and the cross-chain pool (O3 Hub). O3 Aggregators are deployed on major blockchains and help users locate the most favorable trading rates and routes within each network. O3 Hub offers users cross-chain transaction services based on PolyNetwork, and allows liquidity to be added via a single token from different chains to earn income from cross-chain transaction fees and O3 rewards.

O3 Aggregator

System roles are separated into the following categories:

Users: Users connect to O3 Swap to transact with their crypto wallet.O3 Relayer: Acts as the intermediary between the user and the on-chain contract. Based on different users’ needs, the O3 relayer can find the best exchange rate through O3 Swap.Swap: The system’s core exchange mechanism. It receives user requests from the relayer and performs liquidity settlement through smart contracts.Aggregator: Aggregates liquidity sources across blockchains to determine the best trading rates and routes for users.Cross-chain Pool: A cross-chain asset transaction pool built on the PolyNetwork protocol, enabling asset exchange across chains.Liquidity Providers: Mainly including the following liquidity sources:Automated market makers from on-chain algorithms across different DEXs.LP market maker that provides liquidity for the Cross-chain Pool.

O3 Hub

O3 Hub includes a cross-chain asset pool such as a stablecoin pool, along with a cross-chain protocol based on Poly Network. Using Curve’s StableSwap invariant, the algorithm’s performance was assessed and optimized for stablecoin liquidity provision. This automated stablecoin liquidity approach aims for very low price slippage and significantly reduces impermanent loss. On the implementation side, traders can swap major assets across blockchains in a straightforward way; liquidity providers can deposit single or multiple assets into the cross-chain pool and stake the LP shares to earn O3 rewards. The benefit of this design is that it allows users to exchange cross-chain assets without asset deposit and withdrawal, unlike traditional Hub mechanisms-reducing the operational/transaction barrier for users.

Cross-chain Transaction Routing

For example, in a centralized setup, the route to trade BNB on Metamask into HUSD on MDEX is difficult and time-consuming. Traders typically deposit to a centralized exchange, complete the trade twice with KYC and 2-step verification, and then withdraw back to a decentralized wallet and DEX. With the O3 decentralized route, we offer a one-step trading experience through our aggregators and cross-chain pool, letting traders simply exchange multi-chain assets within their wallets. The full process has no account limit and is permissionless.