is a decentralized exchange on the Moonbeam blockchain that has its focus on swaps between different stablecoins.
Moonbeam is a smart contract blockchain that is part of the Polkadot network. This means that it is highly interoperable with other sidechains of Polkadot. The blockchain is also kind of interoperable with Ethereum because smart contracts on Ethereum can also easily launch on Moonbeam with only minimal changes. It has been gaining popularity ever since Polkadot started to launch its sidechain slots and has been growing steadily, 1Beam is part of its DeFi ecosystem.
1Beam works similar to Curve Finance and it is a DEX for swaps between assets that have a similar value, like two different stablecoins. If you need to exchange one stablecoin for another one, you could do that on a normal DEX too but stablecoin DEXes are much more efficient.
Normal DEXes allow the exchange between all kinds of digital assets without needing a centralized service, but the formula that automatically sets the prices doesn't work properly for exchanges between two assets that are supposed to have the same value unless there is a lot of liquidity available. 1Beam only offers trading pairs for assets with the same value and it keeps the slippage much lower because its formula takes in account that the value of both tokens should be the same.
Because all the trading pairs on 1Beam have a very low chance of impermanent loss, there is less need for high fees to incentivise liquidity providers since they have little to no risk. That’s why 1Beam has a trading fee of only 0.04%, as opposed to the standard 0.3% that normal DEXes offer.
Currently there are only liquidity pools for US dollar stablecoins available but eventually there will also be pools for other pairs of tokens with the same value, like Wrapped BTC and renBTC which are both mirroring the value of Bitcoin.
The protocol is one of the most used DeFi dApps on Moonbeam and there are also different versions of it available on Moonriver and Cronos called 1SWAP and 1CRO.
The 1BEAM Token
1Beam has a governance token with the same name. It is used to vote on changes and the stakers of the token are also earning the revenue of the platform in the form of the DAI stablecoin
There is a total supply of 1,000,000,000 tokens and they are being distributed over 3 years with the emission constantly decreasing until it reaches zero. The token had a fair launch, which means that there was no pre-mine or pre-sale, instead it is being minted while being distributed. 42% of the supply is going to the liquidity providers on 1Beam, 18% of the supply is going to liquidity providers of the 1BEAM/GLMR pool on partnered DEXes, 5% were used for an airdrop to holders of 1SWAP on Moonriver (because 1SWAP was basically the test version of 1BEAM), 20% will go to the founders and developers and 15% are going to the treasury to fund marketing and further development of the ecosystem.
The value of the token depends on how much liquidity is held in the 1Beam smart contracts, because the governance rights will affect more money and because there would be more trading fees to earn if more people use the platform. Stable swaps offer great utility for any smart contract chain, so 1Beam is likely to perform well if Moonbeam does too. However, the liquidity providers themselves are not earning any trading fees, only 1BEAM tokens which will also stop after all tokens are distributed, so unless the governance creates a new incentive in a few years there could be a lack of people that want to provide the much needed funds.
The 1BEAM token is not listed on any centralized exchange, but you can buy it on the StellaSwap DEX if you have some GLMR coins for the transaction fees. You can store your tokens in a normal MetaMask Wallet if you connect it to the Moonbeam blockchain.
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