Jelly Swap is a decentralized exchange (DEX). Unlike centralized exchanges that custody your tokens for you, DEXs ensure that users have complete control over their tokens at all times.
Jelly Swap enables cross-chain swaps and token trading across Avalanche, Bitcoin, Ethereum (including any token standard on Ethereum), Harmony, and Binance Smart Chain. The platform enables instant trading of tokens supported on these blockchains by using atomic swaps technology.
We sat down with the team behind Jelly Swap to dive a bit deeper into atomic swaps, their application, and how to get started trading.
What are atomic swaps, and what are they used for?
Cross-chain atomic swaps enable users to swap cryptocurrencies peer-to-peer without extending trust to a third party like centralized exchanges or custody solutions. Everything happens from wallet-to-wallet.
For example, if you have an asset on the Ethereum chain (e.g. ETH) and you want to exchange it for another asset on the Avalanche chain (e.g. AVAX), you can use atomic swaps to do that in a completely non-custodial and trustless way. No registration is required.
Atomic Swaps ensure that no single party ever holds both cryptocurrencies at the same time, making it impossible for fraud to occur. In the end, the swap will either succeed for both parties, or the assets will return to their original senders.
At a high-level how does Jelly Swap facilitate atomic swaps?
The mechanism we use is called Hashed Time-Locked Contracts (HTLCs). We created a simple infographic to help you understand the process: