ViperSwap is a DEX that enables decentralized trading for tokens on Harmony ONE which is one of the most popular smart contract blockchains that uses sharding for scaling.
The ViperSwap DEX works like or Sushiswap do. Users can provide their funds to liquidity pools in exchange for trading fees. The pools consist of 2 tokens and the protocol bases their price based on how much of the tokens are supplied relative to each other. For example, if there would be a pool with 100 ONE coins and 1,000 VIPER tokens, then you could buy 10 VIPER with 1 ONE.
The DEX is charging his traders a fee of 0.30%, the liquidity providers are getting 0.2% of that and the remaining 0.1% is going to the VIPER token holders that deposit their tokens to the ViperPit, this is just like Sushiswap and its xSUSHI feature
The Harmony blockchain is very fast and cheap to use and can be used as a second layer for Ethereum. ViperSwap was the very first DeFi application on its chain and is still one of the most used dApps. As a DEX it can serve as necessary infrastructure for other dApps, like for lending protocols that could use it to sell collateral of failed loans or for any dApp that is using part of its fees to buy back and burn its governance token. This means that ViperSwap could grow together with the DeFi ecosystem on Harmony.
Hamony is interoperable with Ethereum and the BINANCE Smart Chain thanks to a bridge to them. This allows Viper to offer trading for assets from this blockchains too, which brings a lot of liquidity to the DEX.
It was created by VenomDAO, which is an initiative that is aiming to launch decentralized finance applications across multiple EVM compatible blockchains in a fair way without any presales or other unfair allocations to early investors. VenomDAO has also launched the Euphoria algorithmic reserve currency protocol on the Harmony ONE chain and the CobraSwap DEX on the Binance Smart Chain. ViperSwap is their most successful creation so far.
The VIPER Token
VIPER is the governance token of ViperSwap. It is used to vote on changes to the protocol and it rewards its holders with a part of the trading fees via the ViperPit.
VenomDAO itself will soon also launch a governance token that has some control over all the projects that belong to VenomDAO like ViperSwap, CobraSwap and Euphoria. Each project has their own governance token too, which will have more voting power for their own project and to a degree also over VenomDAO. You can imagine this governance process like regional voting (VIPER) and national wide voting (Venom).
The token has a max supply of 500,000,000 VIPER. The entire supply is being farmed by liquidity providers until Q1 2023. Until December 2021, only 5% of farmed VIPER tokens were instantly available to the providers, the remaining 95% were locked and only started to slowly unlock on 25th December 2021. This is supposed to prevent early providers from dumping all their tokens instantly and dump the price which is important because they received a lot of VIPER tokens since the distribution slows down over time.
The value of VIPER depends on how many people and dApps use the DEX and the broader Harmony ecosystem. Since it was the first DEX on its blockchain it has first mover advantage there and many more projects are launching on Harmony to utilize its low fees and high speed. The tokenomics are also damn good since all of the tokens go to the users. However, the governance process with VenomDAO is a bit weird and it’s currently not known how the entire process will work. The sister project CobraSwap on the Binance Smart Chain has also been kind of forgotten by VenomDAO.
VIPER is not supported by many centralized exchanges, MEXC is the only one that offers it. You can also buy it on its own DEX if you have ONE coins. You can use a MetaMask Wallet to store your VIPER and ONE and to use the ViperSwap dApp.
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