Skip to main content
Live on Base.
openSwap is a fully on-chain swapping application designed to frequently beat AMMs in fees. It is an RFQ system, so there is time between swap submission and execution. In openSwap, a user proposes a swap, someone matches it, and openOracle determines the execution price. The matcher earns a fee for their service and kicks off the oracle game. openSwap is powered by openOracle, a permissionless escalation game using real token commitments. In openOracle, a price report is represented by two time-locked limit orders, a buy and a sell, at the same price. If someone wants to swap against either order, they must at the same time become the next reporter, posting two larger limit orders. The time-lock is refreshed and the game repeats with the same rules. If nobody swaps by the end of the time-lock, the price is considered valid and can be used for swap execution. You can also read our medium article Introduction to openOracle to get a sense of the process. openSwap abstracts all of this complexity for the user down to a simple, browser-wallet-enabled interface.

​
DISCLAIMER

The contracts, protocol, and UI are still in the research stage but are on production (“on-chain”) networks so we can test the economic incentives since these are critical to the design.We have worked on the contracts for some time; however, they have not yet been audited. Users should be prepared to lose all funds when interacting with unaudited contracts. Another thing that has not been audited is the game theory and statistics. Users should be aware that even in the case of flawless Solidity code it is highly likely there are math and game theory errors that not only render this endeavor moot but also put user funds at risk. Even if it works, user misconfiguration of either oracle parameters, swap parameters, or trading bots can lead to the loss of funds. If all of the aforementioned is done perfectly, the underlying blockchain can still fail and users can lose funds. Proceed with care.