During the event, participants inquired about Switcheo’s ability to ensure its exchange has sufficient liquidity. In response, Yeu pointed toward Switcheo’s future standalone order matching engine, Switcheo TradeHub. Switcheo TradeHub will feature an automated market making (AMM) model that allows users to stake tokens into liquidity pools for spot trading, similar to the Uniswap protocol on the Ethereum blockchain.
Yeu also noted, “By moving onto Switcheo TradeHub, we [will] save on transactions costs and benefit from higher [transactions per second].”
In response to a question about the utility of Switcheo’s native NEP-5 SWTH token, Yeu noted that it will be used as collateral for ensuring transactions have been validated correctly through a staking function. Switcheo intends to implement a process where staked tokens will earn SWTH from transaction and trading fees as compensation for acting as the transaction validation collateral.
Other SWTH token use cases will include the ability to contribute to liquidity pools of Switcheo TradeHub, contribute to the insurance fund system of the Demex derivatives exchange, and serving as the native currency for future listing fees.
Currently the Switcheo non-custodial exchange offers markets on the Neo, Ethereum, and EOS blockchain platforms. However, Poon noted, “We really want to add many more blockchains, and will be one of our priorities in the near future.”
The full AMA overview can be found at the link below:https://www.reddit.com/r/NEO/comments/hwdvk1/qa_session_with_switcheo_cofounders_ivan_poon/