Ecosystem Participants

The Casperswap ecosystem is primarily comprised of three types of users:

  • Liquidity providers

  • Traders

  • Protocols and Developers

Liquidity providers are incentivized to contribute CEP-18 tokens to common liquidity pools.

Traders can swap these tokens for one another for a fixed .25% base fee (which goes to liquidity providers).

Protocols and Developers can integrate directly with Casperswap smart-contracts to power innovative and exciting interactions with tokens, trading interfaces, retail experiences, and more.

The interactions between these classes result in a positive feedback loop, fueling digital economies by defining a common language via which tokens can be pooled, traded and used.

Liquidity Providers

Liquidity providers, or LPs, are a not homogenous group:

  • Passive LPs are token holders who wish to passively invest their assets with the goal of accumulating trading fees.

  • Professional LPs are focused on market-making as their primary strategy. They tend to the development of custom tools and ways of tracking their liquidity positions across different DeFi projects.

  • Token projects may choose to become LPs in order to create a liquid marketplace for their token. This allows tokens to be bought and sold smoothly, and unlocks interoperability with other DeFi projects through Casperswap.

  • Finally, some DeFi pioneers are exploring complex liquidity provision interactions such as incentivized liquidity, liquidity as collateral, and other experimental strategies. Casperswap is the perfect protocol for projects that wish to experiment with these kind of ideas.


Several categories of traders exist in the protocol ecosystem:

  • Speculators use a variety of community built tools and products to swap tokens using liquidity pulled from the Casperswap protocol.

  • Arbitrage bots seek profits by comparing prices across different platforms to find an edge. (Though it might seem extractive, these bots actually help equalize prices across broader markets and keep things fair.)

  • DAPP users buy tokens on Casperswap for use in other applications.

In all cases, traders are subject to the same base fee. Each of the above actors are instrumental in increasing the accuracy of prices and incentivizing liquidity.


There are a plethora of ways in which Casperswap is used in the wider blockchain ecosystem, some examples include:

  • Countless UX experiments and front-ends built to offer access to Casperswap functionality take advantage of the open-source, accesible nature of the system, with Casperswap functions found in most of the major DeFi dashboard projects. Plenty of Casperswap-specific tools are being consisntently being built by the community as well.

  • Wallets often integrate swapping and liquidity provision functionality as a core offering.

  • DEX (decentralized exchange) aggregators pull liquidity from many liquidity protocols in order to present traders with the best prices by splitting their trades. Casperswap is the largest single decentralized liquidity source for these projects.

  • Smart contract developers make use of the suite of functions available to come up with new DeFi tools and other various experimental ideas.

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