Built as a proprietary cross-chain aggregation protocol, 03 Swap aims to deliver access to crypto-financial services. Its development was undertaken by the Tokyo-based O3 Labs. The protocol allows users to leverage the cross-chain “swap” feature to exchange several digital assets with the O3 Wallet.

O3 Labs gave priority to provide a protocol with a high level of safety and security. Thus, they designed O3 Swap with a decentralized model to store and protect the cryptocurrencies, assets, and tokens. In addition to a swap feature, the protocol offers “cross-chain swap”. That way, users can exchange their digital assets without being bound to a single blockchain.

To enable this feature O3 Swap executes the exchange while the cryptocurrency or digital assets goes from a blockchain A to a blockchain B. Both networks are separated and never communicate, but when a user sends an initial asset, the protocol deploys a target asset on the receiving blockchain.

The feature is supported by the O3 Wallet and settles through the smart contract on the protocol’s settlement layer. As a bonus, users will have cross-chain pools which will aid them to complete their exchange.

The protocol has set out to become a one-stop aggregation and exchange platform and meet consumers’ demands in the growing DeFi ecosystem. O3 Swap’s protocol, design, features, and components have the objective of providing a decentralized, limitless, distributed, secure, and open environment for users and developers.

O3 Swaps follows the DeFi principles and was built as a permissionless, non-KYC, and anti-censorship protocol. Therefore, anyone can access it. Users will not only have low cross-chain exchange rates with its aggregation protocol but will be able to participate in its governance model based on the O3 Swap token.

O3 Swap is composed of an application layer and a settlement layer. The first formed by the O3 Wallet, O3 Swap, and payment feature. The second formed by the O3 aggregator and cross-chain protocol. In addition, O3 Swap has automated market maker, order book, and money market features to provide liquidity. Finally, there is an O3 Swaps application layer with a service API to be integrated with many apps.

O3 Swaps claims that they will aggregate quality public chains, such as Ethereum, Binance Smart Chain, Neo, Polkadot, Huobi ECO Chain, and layer 2 projects to offer trading between many blockchains. Their O3 Hub or cross-chain pool will be connected with the O3 aggregator feature and other liquidity pools in different ecosystems.

Thus, users will be able to leverage liquidity to earn cross-chain transaction fees and O3 rewards. The O3 Hub will use the “StableSwap” invariant from Curve protocol. This will protect consumers from impermanent loss by optimizing the exchange between stablecoins.

For example, on Ethereum, a consumer can use O3 Hub’s transaction service, based on PolyNetwork, to provide liquidity with Uniswap (UNI), SushiSwap (SUSHI), Curve (CRV), 1inch (INCH), SushiSwap (SUSHI), and others. 

To use the protocol, a consumer can go to the platform’s swap page (link: https://o3swap.com/) and click that option on the exchange section. Then, the user must connect their wallet (MetaMask, O3 Wallet, NeoLine) to pick the token they intend to exchange. 

After an amount has been entered, the user can view the transaction details by clicking the “RFQ” option. During this part, users can confirm their transaction and adjust the network fee. For the O3 Hub, the process is similar, users pick their token and select add or remove liquidity. To confirm a transaction, users must click on the “Deposit” or “Withdraw” option.

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