A look at PintSwap: The P2P OTC Orderbook DEX

October 13, 2023

In conclusion

Gather here, boys! Grab a big pint and zoom in! 

Today's focus is for you unrepentant degenerates who have had to pay that outrageous fee when swapping a low cap memecoin either in profit or in loss on a shitty AMM. If it is the latter (loss), then you probably understand how annoying it can be swapping ‘TaylorswiftandTravisKelceinu’ at a loss and still paying outrageous fees while at it. 

The inefficiencies associated with low-cap tokens could be such a turn-off for liquid degens that might often have to forfeit a good percentage of their gains due to the slippage associated with illiquid small-cap tokens. 

In addition to slippage issues, you can get battered – sandwiched – aping size into these low caps by MEV bots. Moreover, the trajectory of DEX trading these days has moved from pretty web UI to the blue walls of Telegram where bots have simply taken over. Still, these issues persist; you still pay those fees and taxes, and might not escape getting sandwiched leaving us with no option than to say that at best, these bots are a few buttons with the same AMMs under the hood, and frankly, that’s what they are. 

Considering all these concerns, there arises a necessity for something novel, vibrant, and appealing, like a new wife.

PintSwap is the answer.   

So, let’s get into it. 

What the heck is a PintSwap and why should you care?

Pintswap isn’t another AMM DEX that promises heaven and eventually offers Hiroshima in its most desolate form – underdelivering on those big promises. Instead, it is a very problem-specific DEX that allows users to exchange low-cap tokens as well as any ERC20 token via a p2p channel that publishes trade

orders to a decentralized orderbook as well as through OTC for private exchanges. 

How does it work, man? 

PintSwap functions via self-destructing contracts between trading parties in a very interesting way. What happens is when a user decides to trade their token at a particular price point, they are able to set a limit order which goes directly or is published to the P2P orderbook. A trader can also opt for privacy by choosing the OTC order which allows such a trader to boycott the public orderbook where trades can be picked up by anyone, to trade directly with a specific peer.  

The trading engine then matches trading parties who are connected through a special communication called the libP2P stream which creates a shared key between both parties. 

What next? This key will be used to sign a one-time contract to exchange tokens between the buyer and seller after which the contract will destroy itself. 

The design works such that market-making is easy, allowing anyone to provide liquidity for the order book. What happens when there’s no liquidity? Well, in a situation where this happens, the trading engine will act as a DEX aggregator allowing traders to swap. 

Every transaction route using PintSwap completely eliminates taxes and slippage fees thereby saving degens money and allowing them to be a lot more capital efficient in their ventures. 

The PintSwap engine doesn’t stop at just matching trading parties but performs arbitrage functions as well because of the possibility of price discrepancies between the orderbook and DEXs. For example, when a trade is ordered, the engine tries to match the trade with a trading party on the orderbook, however, failure to do so will see the trade executed on a third-party DEX with the engine functioning as a DEX aggregator and an MEV bot at the same time via the OPPS (MEV engine) to capture any value gap between the orderbook price and external DEX.

The way the MEV works – it borrows liquidity from the vault contracts constructed for every ERC20 token traded on the network, arbitrages, and repays the loan plus profits in the same transaction. 

Who benefits from the MEV profits? The value captured in the MEV transaction goes to $PINT stakers and the PintSwap.

In all of this, it’s important to note that PintSwap doesn’t make use of centralized relay servers for limit orders, thereby eliminating a central point of failure and ensuring true decentralization. 

PintSwap Features 

There are many moving parts to PintSwap and we will run through them bit by bit: 

The Telegram bot

Truthfully, making the PintSwap product available as a trading bot is a genius way to keep up with the times as a significant amount of crypto trading activities recently leverage bots for execution. The PintSwap TG will allow users to place orderbook trades, in other words, set market orders executed by the trading engine which will match trades to counterparties. Also, using Telegram, users will be able to preset sell trades using limit orders which will be matched by the trading engines.

Alongside this, users will be able to trade privately with a counterparty using the OTC service which supports more low cap coins than any other OTC DEXs. 

The Orderbook

Just like it is on CEXs, the orderbook publicizes a trade allowing an opposite trading party to take the trade. Orderbook trades are zero tax and zero slippage. 

Market making

PintSwap will enable single-dice staking of low-cap tokens allowing users to earn yield on these tokens as they’ll be deployed to provide liquidity to illiquid pairs.

Trading fees 

PintSwap will capture fees in more ways than one. Firstly, it’ll have a 1% fee on trades irrespective of the route of such a trade. PintSwap fees will also come in the form of MEV profits, and lastly from market-making activities. However, these profits flow back into the protocol with 40% going to $PINT Stakers and 60% to the protocol treasury. 

Other features like the OTC private trades, and MEV engine will allow PintSwap to become a powerhouse for degenerate traders. 

Governance and Tokenomics

PintSwap tokenomics is easy to grasp. The governance token, $PINT will be used to acquire trading discounts and will have a supply of 1 billion $PINT tokens. 

It’s important to note that 1% in terms of fees mentioned earlier will be deliberated by the PintSwap DAO who will have voting rights exercisable by holding $PINT tokens. 

Here’s the really important part about access to the $PINT token. Well, in order to get your hands on the token or participate in the public sale, you’ll need to hold an NFT called Tris NFT with a supply of about 1000 NFTs. Each Tris NFT will give you exposure to 0.01% of the total supply of PINT and 0.063% of the circulating supply at TGE. 

This format also exposes the NFT floor to manipulation but not to worry, PintSwap will be using a time-weighted average price (TWAP) method to determine the fair valuation of the token at launch. What this means is that exactly 7 days to the TGE, the TWAP will begin counting such that the market cap at the launch will effectively reflect the average price of a TRIS NFT for the last 7 days multiplied by the total supply of TRIS NFTs (1,000). 

Also, 2% of the $PINT token will be available at TGE on the 13th of October but here’s the interesting part; at the TGE, there will be an initial 5% buy and 5% sell tax on the $PINT/ETH pool. However, fees generated from this tax will accrue to the $PINT token holders as the 40/60 rule will apply to it — i.e.: 40% to the $PINT Stakers and 60% to the PINTDAO treasury. 

Roadmap and concluding thoughts

There are still a lot of things in store for PintSwap such as P2P chats for OTC trades, more external bot integrations, market-making for projects, more advanced MEV strategies, and fee adjustments/ compartmentalization. 

It’s not difficult to see the value proposition of PintSwap and if everything goes smoothly, how they could easily become a tough competitor for existing AMMs and Telegram bots.  Every degen would like to save a lot more on fees and taxes without compromising their ability to smoothly execute trades and this is what PintSwap brings to the table. 

With the PintSwap TGE coming up, you can keep tabs on the project by following them on X as well as on Discord.

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