ChadSwap

Introduction

Chad Swap is a decentralized exchange (DEX) protocol forked from Uniswap V3, with modifications to enable protocol-level fee collection and collateralization of LP positions. The distinguishing feature of Chad Swap is the activation of the protocol fee switch by default, redirecting 10% of all swap fees to the protocol treasury.

Technical Architecture

• Fork of Uniswap V3: Chad Swap inherits the concentrated liquidity model of Uniswap V3, allowing LPs to provide liquidity within specific price ranges, maximizing capital efficiency.

• Protocol Fee Switch: The fee switch is hardcoded to be enabled for all pools, with a fixed 10% fee redirection to the protocol treasury. This is implemented by modifying the fee collection logic in the Uniswap V3 core contracts.

• Fee Treasury: Fees are aggregated in a protocol-controlled treasury smart contract, which serves as the source of revenue for sCUSD yield generation.

Collateralization of LP Positions

LPs on Chad Swap can use their positions as collateral to mint CUSD. The eligibility and collateralization mechanics are detailed in the CUSD section below.

Multiple Fee Tiers

ChadSwap supports multiple fee tiers, giving LPs the flexibility to choose their preferred fee structure based on the volatility of the traded pairs. The available fee tiers are:

• 0.01%

• 0.05%

• 0.30%

• 1.00%

Fee Structure

ChadSwap employs a dynamic fee structure with multiple tiers. Users can choose the fee tier that best suits their needs, based on the volatility and trading volume of the token pairs.

10% of swap fees will be distributed as the yield to the CUSD holders

Further Reading

For detailed information on the underlying mechanics and advanced features of the protocol, please refer to the official Uniswap V3 documentation.