Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…
Cango.fi is a user-driven protocol enabling cross-chain swaps of native tokens, stablecoins, and other cryptocurrencies across different networks. The project operates as a decentralized ‘super’ aggregator with low fees and an easy-to-use interface.
DeFi project launches are few and far between during one of the worst bear markets in history. Nevertheless, ambitious new protocols continue their development with an outlook toward the future. One such project is Cango, one of the first aggregators in the cross-chain space.
This review looks closely at the project’s odds of becoming the go-to protocol for cross-chain swaps in DeFi. Read on to discover its vision, features, and future plans.
What is Cango?
Cango is a decentralized super aggregator that improves cross-chain swapping through the aggregation of DEXs and interoperability protocols. In short, this application allows users to move tokens (like USDC, ETH, and BNB) across networks seamlessly by instantly finding the best route for the transaction. The founding team launched the project seeking to create an accessible, user-oriented cross-chain solution. Through protocols like theirs, they believe the mainstream adoption of decentralized applications across chains can happen sooner.
The Cango team considers many cross-chain dApps (decentralized applications) to be inefficient and poorly designed. In other words, their underdeveloped interfaces reduce the overall quality of experience when moving across networks. Instead, the protocol aims to create better cross-chain experiences on three core values:
- Simplicity through user-centered design
- Decentralization through open infrastructure
- Efficiency through aggregation
The first feature in the Cango interface is the ‘Swap’ tool, enabling users to swap tokens at the best possible price within the same network.
This feature is identical to the typical DEX experience. Users can swap Token A for Token B and vice versa. For example, if the Polygon network is selected, users can find the best possible price to swap MATIC for USDC.
The protocol uses a smart-routing algorithm to split transactions across different sources to maximize the overall return on swaps. Users only need to connect their wallets and start swapping.
The ‘Cross’ tool is the next important feature. This feature allows users to perform cross-chain swaps across networks. For example, this can help a user to find the best price to swap ETH on Ethereum for BNB on the BNB chain.
The Cross tool combines the power of decentralized exchanges with the aggregation of leading interoperability protocols. This allows Cango to find the most efficient route to complete a cross-chain swap. After scanning across DeFi to find the most efficient route to complete their swap request, the protocol is able to provide the user with a single executable transaction. On the backend, the protocol can also split large transactions across various sources to provide better rates.
Cango allows users to not have to keep up with all of the different cross-chain protocols. Instead, they can use a single interface to help them find the best rates for their cross-chain transactions. Examples of leading interoperability protocols that are aggregated include Celer SGN, Hop Exchange, and Connext NXTP.
The Cango team has also teased a future release of a cross-chain yield function that can combine all the functionality mentioned above to help users get the best yield rates.
Cango has all it takes to become a standout DeFi application. Its take on a user-oriented decentralized ‘super’ aggregator helps simplify the cross-chain experience. By focusing on becoming a community infrastructure, Cango can become core to the future DeFi.
We will closely follow the project’s development and report on new features when they become operational. In the meantime, you can learn more about Cango by following the links below: Website | Twitter | Discord.
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