Omniswap, as the name suggests facilitates multi-chain token swaps. Omniswap is built on the off-chain trade settlement protocol pioneered by Open. Through Omni, a trader benefits from reduced transaction costs, better trade success rates, a trade latency improvement upto 70% over the existing services. The estimated average time for the swap request fulfilment is less than 3 blocks(approximately 9 to 45 seconds depending on the blockchain network(s) the swap is involved on).
Exchanging a token for another, on Omniswap is quite simple.
To begin with, the user must connect a compatible wallet with the Open’s web application. This establishes a relationship between the user and the Open protocol. The user can navigate to the Omniswap product in application, and deposit the tokens intending to exchange. These tokens are deposited with the treasury. The user provides the token details required in exchange, placing the swap request. The treasury contract notifies the escrow contract to initiate the LE request. The LE request is fulfilled by the OTS network. The escrow contract receives the swapped tokens, marking the swap complete. The user can withdraw the swapped tokens from the escrow contract to the wallet of their choice.
Note that Omniswap catalyses the combined liquidity of the decentralised exchanges, centralised exchanges & the liquidity pools such as Uniswap, facilitated by the off-chain trade settlement protocol. Omniswap prioritises utilisation of Binance smart chain over Ethereum, for on-chain transactions to optimise network fees.
Explaining the use-case of Omniswap through an example - A user owning 10,000 ETH intends to convert the ETH into BNB. Trading 10,000 ETH is bound to impact the market adversely if traded on a single exchange, with a reciprocal effect on the slippage. To avoid this, the user lands on Omniswap, deposits 10,000 ETH, and places the swap request. The LE is fulfilled by the LPs on the OTS network, leaving the user with BNB coins equivalent to 10,000 ETH, with little to zero slippage.