Matt Power said that O3 does not and will not use centralized exchanges nor does it require any of the Know Your Customer (KYC) controls required by many regulators, he added.
“We’re passionate about decentralization. We don’t think it’s cool to have to register, upload your passport, get your tax filing … as you would on something like Coinbase,” Powers said. Nor, he added, does your crypto ever leave your O3 Wallet or your custody.
Like any DeFi protocol, O3 Swap will be launching staking via the O3 Hub, which will go live later this year as a kind of in-house liquidity pool, enabling cross-chain trading.
“In the O3 Hub, we’re going to invite users to stake their coins, their own liquidity to O3 Swap. That should make things a little more stable in the future,” Powers said when asked about slippage — the price change in the time between an order entering an exchange and the execution of the trade. While it occurs in all markets, cryptocurrencies’ volatility can make slippage a serious problem.
The O3 Swap aggregators run through DEXs on several major DeFi blockchains including
Ethereum-based Uniswap, Curve, and 1inch; the Binance Smart Chain’s PancakeSwap, DODO, and MDEX; Neo’s Flamingo and Nash; and Huobi Eco Chain’s MDEX and LAVAswap.
O3 Swap will only charge a small fee — about 0.3% — for trades, which should slowly but surely decrease the supply of O3, Powers said.
Of course, before that, O3 Swap will have to exit the test phase it is currently in, which put a $20 maximum on swaps. That’s set to happen sometime in Q2 or Q3 this year, according to the O3 Swap litepaper. In Q4, the aggregation protocol will deploy on layer-two networks, as will the initial version of a governing DAO.
The O3 token will also have some governance functions, notably voting on changes to the network, Powers said.