Bridges will do things differently compared to most exchanges in DeFi. There are a few surprises that we still have in hand, and today we are announcing the biggest one: Bridges will be a hybrid of an exchange and an aggregator.
We recognize that there isn’t infinite money in DeFi. Many new decentralized exchanges offer the same rewards to liquidity providers as the leading decentralized exchanges. While Bridges does offer about 20% more in liquidity fees than the leading exchanges on BNB Chain, it will take some time for liquidity providers to migrate to Bridges Exchange. Additionally, many trustworthy projects have locked their liquidity and aren’t able to move it to Bridges at this time. We don’t want to exclude those projects from listing with us due to a lack of liquidity.
Why is this important? If an exchange doesn’t have liquidity for a token pair, then you can’t swap that token pair. We didn’t want this issue to hold projects back from listing with us, nor did we want to be limited in the projects that we can offer from the CoinMarketCap Top 10 — or even the CoinMarketCap Top 100.
How does the exchange-aggregator hybrid work?
When you want to swap a token, the exchange’s smart contract checks to see if there is liquidity for that token deposited in the exchange. If there is, you can swap. If there isn’t then you can’t. On the other hand, an aggregator doesn’t have any liquidity and instead uses the liquidity deposited in other exchanges.
The smart contracts that form Bridges Exchange have both aspects. When you use the swap, you can select a token from the list of Bridges-approved tokens. Bridges Exchange will then check to see if we have liquidity for that token. If we don’t, then the swap will execute with the liquidity in another exchange.
Bridges Exchange will be a first of its kind in DeFi. The hybrid solution allows us to tap into a lot of liquidity with minimal effort. With this, we are paving the path for a new way forward that no other decentralized exchange is doing.
Another benefit is that we can offer more tokens in the swap much earlier. Our team is reviewing the CoinMarketCap Top 100 to analyze which already established and trusted tokens, as well as pegged tokens, we want to list. We can essentially list any token without needing to worry about securing the liquidity for that token, and we don’t need to rush to list on yield aggregators. At the same time, liquidity providers can still bring their liquidity to Bridges to benefit from our higher rewards as well as the farms.
By being an exchange-aggregator hybrid, we also open the door for even more projects to list on Bridges Exchange. Responsible projects usually lock a majority of their liquidity for a period of time, and they might not have enough unlocked liquidity to deposit today. Those projects can list with us now, and bring their liquidity later.
Given that we have an exchange-aggregator hybrid in place, we are able to approve and list new tokens, existing tokens that are growing, established tokens, stablecoins, and pegged coins. On the day that Bridges Exchange launches, we’ll be putting live pegged coins, stablecoins, and tokens from the CoinMarketCap Top 100. We’ll also put live Bridges-approved projects that have applied to be on the exchange.
As we’ve stated before, we won’t put everything live on Day 1, but we’ll roll out tokens over the first weeks as we build up our portfolio of Bridges-approved tokens.
To be the first to know about token launches, join all of our socials. If you want to suggest a token for listing on Bridges Exchange, send an email to email@example.com. If you’re a project developer, learn more and apply to list your token here.