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Sarmaswap – A DeFi Project Aiming to Solve the Issue of High Gas Fees

Sarmaswap is a new initiative entering the DeFi world to solve one of the industry’s infamous issues. As the project’s team highlights, many decentralized exchanges allow users to operate on the market only at a generally high cost.

The execution of a complex smart contract can be very expensive to investors. One may label the use of high transaction fees in a system aiming to reach mass adoption as illogical. DeFi’s high gas fees are a well-known issue in the field, and Sarmaswap has joined the market to find a solution to it.

About Sarmaswap

As the founding team puts it, Sarmaswap is a next-generation autonomous yield and liquidity protocol. The initiative will also feature the launch of a Web 3.0 platform, together with a mobile app.

The team’s idea is to create a system that will let crypto traders enjoy a complete lack of internal gas fees. This approach would only include an initial one-time exchange cost. 

Sarmaswap will enable users to exchange cryptocurrencies, NFTs, and other crypto-related assets. The following subsections will summarize the main features of Sarmaswap for the readers.

Basic functions

The Sarmaswap ecosystem revolves around three primary functions, which we can list as follows:

  • Burn: each transaction on the system will trigger a 10% tax, with 5% going to a burn wallet. The move represents the introduction of a deflationary force in the system, a typical strategy to sustain a token’s value.
  • Reflections: the remaining 5% of the tax we mentioned above will go back to the platform’s native token holders.
  • LP acquisition: furthermore, a 3% tax on the transaction will go to the Sarmaswap Defi exchange fund (1.5%). The system will pair the remaining part to BNB and introduce it as a liquidity pair on PancakeSwap. 

Manual burns 

The team clearly states that Sarmaswap will adopt a token manual burn strategy. The mechanism aims to avoid losing control over the burning mechanism. The founders fear that a fixed approach to reduce the token supply may eventually harm the system’s stability.

Sarmaswap has shown on its website the number of tokens that the platform burned to introduce more transparency in the ecosystem.

The automatic liquidity pool

The team calls the system’s automatic liquidity pool the authentic “secret sauce” of the project. The whole idea consists of the following components:

  • Sarmaswap will collect tokens from both sides of the market (buyers and sellers), adding coins to the liquidity pool (LP). The mechanism’s purpose will be to establish a price floor for the protocol’s native token.
  • As the team explains, the whole operation aims to discourage arbitrage practices. Speculators may enter the market only to sell immediately after a sufficiently high profit. Taxing these operations and transferring liquidity back to the system can support the token’s price floor.

The $SMS Token

The BEP-20 Sarmaswap token (or $SMS) will come with a maximum supply of 1,000,000,000,000,000 tokens through Binance Smart Chain (BSC). As we mentioned previously, the system will have a 13% transaction tax, going to holders’ reflections (5%), burn operations (5%), and project liquidity incentives (3%).

The $SMS token will have the following distribution:

  • Burn at launch: 50% of the supply
  • Locked tokens: 40% of the supply
  • Holders on every transaction: 5% of the supply
  • Project incentives: 3% of the supply
  • Token burn per transaction: 2% of the supply

Roadmap

Sarmaswap has publicly shared its project’s roadmap, making it easier for the market to understand its ambitions. The following sections mention a few details on each phase in the development pipeline.

Q4 2021

This initial phase saw the team working on the whitepaper and the preliminary operations connected to the launch of $SMS.

Q1 2022

The developers expect to work on the alpha version of Sarmaswap during Q1 2022. Furthermore, all the operations connected to CEX listings should end by March 2022. At this point, the team will launch the Sarmaswap Beta registration waitlist feature.

Q2 2022

By the end of the second quarter, the project should see the arrival of its exchange platform for Mac, Windows, Android, and iOS devices. Moreover, the team will launch Sarmaswap wallets on the system.

While it will not be possible to buy cryptocurrencies with a credit card at this stage, the developers will start working on this feature.

Final thoughts

Sarmaswap proves, through its team, to be aware of the current limitations in DeFi mass adoption. By tackling the well-known gas fees issue, the project expects to reach significant growth by 2023.

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The debate over the flaws of the current DeFi world is certainly bringing many projects into the market. We will certainly keep an eye on this new initiative, and the market itself will judge its value over the long term. Sarmaswap just launched its presale, and you can follow the events here.

Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Furthermore, Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site. Trading cryptocurrencies is a highly risky activity that can lead to major losses. You should consult your financial advisor before making any decision. Learn More

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