Round 8



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Products & Services

Answap brings the Uniswap protocol into Stellar in order to increase the network's liquidity through AMM. It is a DEX in which the liquidity funding comes directly from the community through crowdsourcing (called liquidity providers), instead of making each user play on their own in a race to get arbitrage opportunities. The platform implements the AMM protocol to provide natural incentives to liquidity providers while protecting their balances, making it much easier for ordinary users to participate in the process while gaining interest on their long-term holdings.


  • Make Profit: Users who provide liquidity will earn fees from any trade that is made on their markets.
  • Provides Liquidity: By being rewarded for liquidity provision, users will find more liquid and attractive markets.
  • Trading Opportunities: The creation of new decentralized markets opens up great opportunities for arbitrage between them.
  • Interoperable: Developers can build solutions on top of it, delivering users new financial opportunities.
  • Transparency: It works completely deterministically.
  • Infrastructure for the community: It focuses on becoming the natural front end access to future liquidity pools and automated market makers at the protocol level.

Users trade against a pool of tokens (a liquidity pool) instead of trading between buyers and sellers like on the DEX. The more assets in a pool and the more liquidity the pool has, the easier and convenient trading becomes.

Answap implements the frontend to interact with AMM and Liquidity Pools that will work with the network’s native AMM protocol but also with the existing Answap AMM Core. Our Core uses the same algorithm as Ethereum’s Uniswap, but is completely adapted and designed to the characteristics of Stellar.

Users supply liquidity pools with tokens, setting an initial balance relation (K) based on the pair (A & B) of assets of the pool. The price of the tokens in the pool is automatically determined by an algorithm that seeks to maintain a constant state of balance rule.

While users make swaps, the base balance is affected. The formula protects the liquidity providers by automatically adjusting the price of the tokens based on its current balance after each swap, always keeping the K product constant.

A(beforeSwap) * B(beforeSwap) = K = (A + addedAmountA) * (B - substractedAmountB)

The liquidity provider doesn't have to worry about how volatile the price gets, the AMM algorithm will eventually tend to return to a state of balance that reflects a relatively accurate market price. If the AMM price ventures too far from market prices on other exchanges, the model incentivizes traders to take advantage (arbitrage) of the price differences between the AMM and outside crypto exchanges until it is balanced once again. aims to be the coolest interface to the native AMM protocol, but also to provide alternative on-chain markets creation thanks to its own (near future TSS) AMM architecture.

Therefore, you can participate in either way; as a liquidity provider or a trader (or both!). Regardless of what you do, you'll always reap benefits while contributing to the network and ecosystem.

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What's new?
Goals & Budget
  • Launch Answap AMM on Mainnet: Answap implements the frontend to interact with AMM and Liquidity Pools that will work with the network’s native AMM protocol but also with the existing Answap AMM Core. Our Core uses the same algorithm as Ethereum’s Uniswap, but is completely adapted and designed to the characteristics of Stellar.
  • Launch Answap as the access interface to AMM and Liquidity Pools at the protocol level
    Accompanying its launch on testnet and providing the frontend features necessary for its eventual upgrade on the mainnet.
  • Encourage the provision of liquidity and generate new profitability opportunities.
  • Add a new layer to the market making process over TSS.
To get there, we  will use our requested budget to:
  1. Version 1 (Release Candidate) on Testnet to get community feedback.
  2. Launch Answap on Mainnet, setting the final front-end access interface and Core AMM protocol functionality to get rewarded by providing liquidity to alternative on-chain markets. Our Core uses the same algorithm as Ethereum’s Uniswap, but is completely adapted and designed to the characteristics of Stellar.
  3. Shape the frontend that also engages with the Stellar’s native AMM Protocol becoming the reference interface for public access and use.
  4. Continuously work on marketing and community growth.
  5. Implement TSS and governance model.

Problem and Solution

It is a known fact that assets of the Stellar Network have relatively little liquidity; at least not enough liquidity to allow us to scale the network towards what we really seek: for Stellar to be the global payments network.

Stellar’s DEX is a fundamental feature for creating markets and allowing swaps between any pair, but it does not encourage its participants to provide liquidity other than to arbitrate with external markets. Only people or financial entities with proper technical knowledge and quick access to arbitrage with external markets, can benefit by providing liquidity. Even so, that task becomes complex, tricky and exclusive. It requires trading bots that constantly track external asset prices and adjust on-chain orders accordingly, resulting in endless offer adjustments which clog ledger history.

To ensure the scalability of the network in terms of liquidity, eliminate the exclusive dependence on (human or bots) market-makers and offer this possibility to all participants of the network and support asset issuers on providing enought liquidity, the community has decided to take a step forward with the inclusion of the concept of Automated Market Makers and Liquidity Pools within Stellar CAP 38. This not only encourages each participant allowing them to obtain profitability from their holding assets in a simple, fast and decentralized way, but also, thanks to its constant product formula, it self regulates the price without the need to maintain synchronization with external reference sources.

The effectiveness of the AMM and Liquidity Pools solution and the great acceptance of the users has been demonstrated thanks to its implementation in Uniswap V2, which during the month of August 2021 has a Trading Volume of $461,085,387 over 2253 coins and 2592 pairs.

Answap implements infrastructure that allows the community to have AMM’s characteristics within the Stellar Network, laying out the front end to create liquidity pools, supply or withdraw liquidity, make swaps, and also providing tools to view metrics of profitability performance for each one of the pools where the user participates. This infrastructure encourages the liquidity of the network, allows all members of the community to achieve profitability for their holding assets, and opens up new possibilities to build financial applications on this new model that does not exist today.

The Stellar Community is working so that this infrastructure can be provided natively, within the same protocol. Answap seeks to become the simple and complete access interface to such functionality when that happens, but also having a descentralized alternative implementing TSS Turrets (Touring Smart Contract) to be able to manage participants governance layer.

Target Market

Answap has been thinked for user of the Stellar network who wants to obtain a return on their assets, but we believe that it is the Latin American user where we will have the highest adoption.

The economic crises faced by Latin Americans, even more so now in the era of COVID, generate a great incentive for their population to choose cryptocurrencies as a savings and safeguarding option, and the movement of remittances that feeds this market only incentivises the situation.

From Rio Grande in México to the southernmost tip of Patagonia, cryptocurrencies have become the lifeline of millions of people. El Salvador Has started a set of changes that will probably generate many more.

Extrapolating BTC statistics, our user profile is:
- Man aged between 18 and 44 years old
- Lives in Venezuela / Colombia / México / Brazil / Argentina / Chile / Peru
- Interested in Financial Services / Investment Services and Software / Design Software / Drawing and Animation Software
- Is an Active Investor
- Likes technology or also likes photography

We estimate a growth factor in active accounts of 2x monthly, to start with 5 accounts in Q4 2021 and end Q3 2022 with 10,000 accounts approximately. Developing, in parallel, the Answap Community and generating financial educational material that helps the adoption of the platform

Revenue Model

The ANI asset is minted for each swap and accumulated into the liquidity pool until the liquidity providers remove liquidity. At the moment they do so, the mined ANIs are calculated according to their liquidity and transferred to the account.

In order to avoid ANI “overmine”, only those liquidity pools that have asset pairs with certain security requirements will be able to generate ANI.

When ANIs are mined, an extra 10% of its quantity is generated and sent to the Answap development fund. This is how Answap generates income.

Market Research

If we calculate the quotient between the market capitalization of both (ETH / XLM) cryptocurrencies, we can get the ratio (E-Ratio) that we are going to use to extrapolate the statistics and find the estimated potential market for Answap:

  * ETH Market Cap. of $373,270,273,275 / XLM Market Cap. of $8,665,306,494 = 43 (E-Ratio)

Now, considering Uniswap as the leader of AMM on the ETH Blockchain, after 2 years on the market, with a market share greater than 30%, it achieved a Total Value Locked (TVL) of $6,790,000,000.
Using the previously calculated ratio of 43 (E-Ratio), the estimated TVL over the Stellar Network is $158,000,000. Considering 20% of that value, so as not to be overly optimistic, the projected TVL of Answap becomes $31,600,000.

As stated before, Uniswap has a TVL of $6,790,000,000 with an average daily volume of $1,100,000,000 , with this information we can extrapolate the daily volume of Stellar:

  * $31,600,000 * $1,100,000,000 / $6,790,000,000 = $5,119,293
Currently the ETH Network has 1,600,000 transactions per day generated by 1,000,000 active accounts.
The Stellar Network has 28,000 active accounts with 6,900,000,000,000 XLM, considering a price of 0.38 XLM / USD, our projected daily volume would be $2,622,000.

The AMM DEX market could double the volume of operations and transactions in the Stellar Network, raising that volume to $5,119,293 , from the previously estimated $2,622,000.

Threats & Opportunities

1) New participants in the DEX market: Innovations in the DEX market can make the implemented models obsolete, so we will dedicate 15% of the development team effort on innovation and development to ensure that we are up-to-date and the protocol meet the community expectation. On the other hand, a marketing team should work on the AnSwap.IO branding, community making and teaching to get confidence and understanding on how to make the most of it until it becomes a must use tool within the Stellar community.

2) Regulation of cryptocurrency markets: The processes to comply with the imposed regulations should be verified, but it is just the beginning and there is still no clear picture. In addition, one of the first conclusions that is being reached is that to regulate the market Cryptocurrency trading is very complex and tedious.

3) Hacking or security leak: In DEX services we have the advantage that everyone can see in a transparent way how the service works, how it will act on each situation and see in real time what happens within it, without manipulation. Fraud and scam protection processes can be implemented. Thus, when establishing a contract with certain conditions to be met, the parties involved in the exchange must obey these conditions for the operation to be executed. In the event of non-compliance with any or all of the conditions, the contract expires and is not executed. Another advantage is the fact that users are not required to provide personal data and KYC information.

4) Technological Failure: The chances of suffering a DEX system crash are almost nil; so users will not have to worry about this problem. This is because DEXs do not operate with a single server, as is the case with centralized exchanges.


Due to the nature of the Stellar network, there are currently many ecosystem participants trying to bring the AMM product to life on the network, there are currently several players working on similar products.
Limiting ourselves to the stellar network we can mention: Script3, UltraStellar, Lumenswap

The Ultrastellar team is currently the one who is publicly presenting a similar solution. But evaluations are not possible until the new protocol is released and we can start testing it. Therefore almost all ratings can be both wrong and accurate.

Marketing & Sales

Our strategy consists of 5 key elements:

1. Building trust in the Answap brand, sustained by technological excellence in order to achieve a clear advantage in the sector and become a benchmark in the Stellar Network at the DEX financial services level.
2. User education in financial services, to help them understand the advantage of Answap services.
3. Socializing the platform, generating a strong and active community.
4. Cooperation with similar companies that can help our brand increase its growth faster, incrementing the acquisition of users and liquidity providers.
5. Initial delivery of the ANI Token to selected accounts.

All marketing activities will be digital, through influencer services on various social networks (such as Medium, Reddit, Facebook, Twitter, and Instagram), using promotions (claiming tokens) in the form of advertising, establishing partnerships with other projects on the Stellar Network and finally leading to carry out community development, communicating regularly with members, promoting AMA (Ask Me Anything) style events or digital meetings using video conferencing platform.

Regarding the number of accounts on the platform, we estimate a growth factor in active accounts of 2x monthly, to start with 5 accounts in Q4 2021 and end Q3 2022 with 10,000 accounts approximately. Developing, in parallel, the Answap Community and generating financial educational material that helps the adoption of the platform.

Month Active > Accounts
2021-09-01  >  0
2021-10-01  >  5
2021-11-01  >  10
2021-12-01  >  20 - Q4 2020
2022-01-01  >  40
2022-02-01  >  80
2022-03-01  >  160 - Q1 2021
2022-04-01  >  320
2022-05-01  >  640
2022-06-01  >  1280 - Q2 2021
2022-07-01  >  2560
2022-08-01  >  5120
2022-09-01  >  10240 - Q3 2021

Resources & Relationships

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We are a group of professionals, with a strong entrepreneurial profile, who build solutions on the Stellar network to bring new financial services focused on the LATAM region.

German Osvaldo Villamarin
+25 years as a Project Manager and Product Manager
+12 years of experience in the Financial Sector

Miguel Rienzi
+18 years experiences in Digital Marketing
+15 years as a Digital Entrepreneur

Fabricio Sodano
+13 years in Software Development and Engineering

Mariano Morales
+10 years IT Manager and Backend Developer
+7 years as a Blockchain Specialist
* National Army Military Electronic Technician

Ivan Mudryj
+17 years as Software Engineer
* Business Manager and Solutions Architect