TANGLESWAP IS A NON-CUSTODIAL, MULTI-CHAIN

DECENTRALIZED FINANCE (DeFi) PROTOCOL. HAVING

BUILT SEVEN STATE-OF-THE-ART, EVM-COMPATIBLE
INNOVATIONS INTO ONE USER-FRIENDLY
DECENTRALIZED PLATFORM, IT CATERS TO THE DeFi
NEEDS OF BOTH PROFESSIONAL AND MAINSTREAM
USERS, WHILE TACKLING THE MAIN SHORTCOMINGS
OF THE CURRENT INDUSTRY: PROFITABILITY,
SCALABILITY, SUSTAINABILITY, AND SECURITY.

With a fervent start at the core of an emergent IOTA ecosystem,

TangleSwap finds itself in an excellent position to capture future
growth and seamlessly scale along an increasing number of Web3
users. Enjoying a renowned presence and various bleeding-edge
value-creation mechanisms, the protocol becomes the ‘go-to’ DeFi
option and market leader of the entire up-and-coming IOTA
ecosystem — which itself enjoys powerful growth prospects
thanks to an impressive technological backbone combined with a
strong, engaged, flourishing community to back it up.

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 TABLE OF CONTENTS

I. INTRODUCTION ——————————————————— 4

II. CORE PRODUCTS ——————————————————— 5

a. Token Swaps 5
b. Liquidity Provision 6
c. Liquidity Farming 9
d. Cross-Chain Bridge 12
e. Vote-Escrowed Staking 13
f. NFT Staking 13
g. Investment Hub 14

III. THE $VOID TOKEN ———————————————— 15

a. Buyback & Burn Blasters 15

b. Void Energy 17
c. Token Distribution 22

IV. WHY IOTA & SHIMMER? ——————————— 24

V. SUMMARY ————————————————————————— 26

VI. PARTNER ORGANIZATIONS ——————————— 27

VII. DIGITAL PRESENCE ———————————————— 27

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 In 2009, an anonymous Satoshi Nakamoto released 2.03 MB of
revolutionary code, designed as “a new electronic cash system that
uses a peer-to-peer network [...] It's completely decentralized with no
server or central authority” — an exemplary contribution originated
in direct response to the 2008 Lehman Brothers collapse.

In 2022, echoes of such financial calamities remain pervasive1,2,3,

still equally fueled by the implosion of centralized, custodial, and
leader-based organizations in which a reduced number of entities
are in control, giving rise to liabilities and single points of failure.

Now is time for a “post-centralization” global future that matches

the principles of transparency & equitability set forth by Satoshi;
an on-chain future where power lies in the hands of individuals.
TangleSwap exists to further this vision by truly democratizing
and bringing decentralized finance (DeFi) to the masses.

While TangleSwap begins as a decentralized exchange (DEX), it

aims for far more. Going beyond the current DeFi boundaries,
TangleSwap combines scalable Distributed Ledger Technologies
(DLT) with design simplicity and ease of use, thereby enabling a
world-class user experience well beyond the industry standards.

Having seen the scope of Web3 and the general crypto ecosystem
grow far above early estimates, we truly believe in the
non-custodial decentralized future already laid out by many
groundbreaking applications and protocols today.

As the amount and nature of decentralized assets grows and

evolves, TangleSwap will continue to position itself as an
innovative yet seamless hub for DeFi, providing a wide range of
user-friendly applications (including upcoming native mobile app
support) and income-earning options that truly allow users to
make the most of their financial assets. Full control, full freedom,
and endless possibilities — the future of finance on TangleSwap.

1
Crypto’s Burning Issue of Centralization | Mt. Gox, Quadriga CX, Celsius, 3AC, Terraform Labs: blog.primex.
finance/cryptos-burning-issue-of-centralization--a-solution-through-defi-and-primex-703f0deed478
2
FTX, Alameda, Celsius Network, BlockFi, Voyager prove the need for DeFi: coindesk.com/layer2/2022/
11/11/ftx-showed-the-problems-of-centralized-finance-and-proved-the-need-for-defi
3
The End of the 'Centralization Era' in Crypto: finance.yahoo.com/news/end-centralization-era-crypto.html

4
 TangleSwap’s ambitious goals begin with a multitude of
decentralized applications (dApps) geared towards the current
Web3 landscape and carefully fine-tuned to suit the needs of both
experienced crypto natives and new users ready to dip their toes
into decentralized waters. This suite of dApps comprises:

I. Multi-route Token Trading

II. Concentrated Liquidity Pools
III. Liquidity Farming
IV. Cross-chain Bridge (in partnership w/ Multichain.org4)
V. Vote-escrowed Staking
VI. NFT Staking
VII. Investment Hub (Token Launchpad)

At the heart of the TangleSwap protocol lies a token-swapping

application that enables users to seamlessly exchange their
cryptocurrencies for one another. Slippage and fees are
automatically reduced to an absolute minimum through our
smart split-routing algorithm, which within seconds finds and
executes the most efficient trading routes for any given token
pair. Additionally, our state-of-the-art concentrated liquidity pool
technology enables high-volume transactions even for pools with
modest liquidity, whilst high-frequency traders are empowered by
limit orders, optimized trading fees, and a feeless base tx layer5.

4
Multichain — Cross-chain Router Protocol: multichain.org
5
Why is IOTA Feeless? wiki.iota.org/learn/about-iota/why-is-iota-feeless

5
 In the true fashion of decentralization, our trading mechanism for
users to swap their tokens is only enabled by other users, known
as Liquidity Providers. By providing liquidity to any number of pools
of their choice, users can maintain a calculated position in an
asset pair of their preference, while putting their otherwise idle
assets to work. Breaking with the inherent barriers of traditional
centralized exchanges, every single individual is thus enabled to
reap the benefits — and navigate the risks — of acting as a
professional market maker to derive true yield and profitability.

Our cutting-edge liquidity pools (LPs) were developed according to

two core principles: maximum security, and utmost capital
efficiency. As such, TangleSwap implemented a Concentrated
Liquidity Market Maker (CLMM) algorithm which, going beyond
the scope of traditional Automated Market Makers (AMM), allows
liquidity providers to place positions tied to specific price ranges,
thus enabling users to individually customize the terms of their
liquidity provision (see Figure 1 for a comparative illustration).

AMM DEX TangleSwap CLMM

Flexible, any interval possible. Examples:

Rigid, only uniformly distributed (0, ∞) for ‘full range’,
Price Range
(0, ∞) interval (15, 240) as in Figure 1,
(0.99, 1.01) for stablecoin pairs

Rigid, only one possibility. Selectable, based on asset type. Examples:

LP Fee %
Example: 0.3% only 0.05% (stable), 0.3% (default), 1% (high-volatility)

Exposure to Flexible, can increase or hedge exposure.

Rigid, only 50/50% possible
LP Assets Example: 40/60%, 85/15%, 50/50%

Importantly, concentrated liquidity protocols result in major

improvements for users on both sides of the action: liquidity
providers see superior returns and flexibility, while traders enjoy
deeper effective liquidity & lower fees. In a comprehensive study6
conducted on 270 non-rebalancing (i.e. unmanaged, or “set and
forget”) pools by the research team at Uniswap Labs (pioneers of
concentrated liquidity), they found their CLMM LPs outperform
comparable AMM positions by an average of ~54%, with capital
efficiencies increasing by up to 4000x times.

6
When Uniswap v3 returns more fees for passive LPs: uniswap.org/blog/fee-returns

6
 Figure 1. Capital efficiency in traditional vs. concentrated LPs
Thanks to its exceptional capital efficiency, not only does
concentrated liquidity enable higher returns with less liquidity,
but importantly it also reduces trading slippage to a minimum,
thus serving everyone’s best interests.

Furthermore, the TangleSwap CLMM algorithm implements a

novel ‘Oracle Balancer’ algorithm designed to minimize the risk of
impermanent loss7 on the returns of liquidity providers. This
Balancer mechanism compares current prices of TangleSwap LPs
against data provided by a battle-tested Chainlink Oracle8 and, in
case of detecting significant deviations, it self-adjusts the Swap
fee to compensate for any strong price discrepancy, thus reducing
the impact of impermanent loss in volatile market conditions by
increasing LP fee revenue until an equilibrium is found.

7
Impermanent Loss | Glossary: coinmarketcap.com/alexandria/glossary/impermanent-loss
8
Chainlink | Blockchain Oracles for Hybrid Smart Contracts: chain.link

7
 Figure 2. Conceptual diagram of Oracle Balancer algorithm

In summary, the TangleSwap protocol combines state-of-the-art

concentrated liquidity tech with an exceedingly scalable, fast, and
innovative DLT backbone to deliver world-class performance for
both traders and liquidity providers. Key highlights include:

- Oracle Balancer for self-regulated impermanent loss mitigation.

- Dual-modality Concentrated-Liquidity Farming (see Section 2.3).

- Absence of Miner Extractable Value (MEV)9, a major architectural

issue costing Ethereum users alone ~$200M USD / year10, as well
as causing major network congestion in detriment of gas fees.

- 100% feeless base layer11 and ultra-low energy12 network.

9
Maximal Extractable Value (MEV): ethereum.org/en/developers/docs/mev
10
Flashbots | MEV Explorer: explore.flashbots.net
11
Shimmer EVM | Technology Overview: shimmer.network/technology
12
Energy Consumption of IOTA 2.0: blog.iota.org/energy-consumption-of-iota-2-0

8
The economic foundations underlying the liquidity provision by
users generally provide for a sustainable equilibrium at which the
amount of optimized capital necessary to facilitate frictionless
trading matches the remuneration accrued by liquidity providers
via trading fees. As mentioned above, the mechanisms behind
TangleSwap LPs already allow for efficient trades with sufficient
liquidity depth, thus providing for a functional decentralized
trading platform for cryptocurrencies and other tokenized assets.

There are nonetheless several reasons and circumstances under

which the provision of liquidity for specific token pairs and assets
might benefit from additional monetary incentivization, e.g. to
bootstrap the early stages of growth of a new liquidity pool.
TangleSwap can offer such an optional extra layer of
incentivization through rewards in any combination of $VOID
and/or other assets provided by the issuing project, whether in
the form of their native token, a stablecoin, or the base Layer 1
cryptocurrency. Users who have provided liquidity for specific
currently-incentivized LPs are able to unlock these unique
additional rewards on the dedicated TangleSwap ‘Asteroid Farms’.

The mechanics behind such farms do hence provide the means

for targeted single- and multi-token rewards, thus incentivizing
involved participants to contribute specific assets to LPs of
particular interest. This not only allows third-party projects to take
advantage of an already existing infrastructure for farming and
liquidity provision, but it thereby facilitates the creation of unique
and individualized token economies that cater to the needs and
desires of the respective ecosystems and communities.

Furthermore, all of these advantages become magnified by the

unique possibilities that directly result from the TangleSwap
CLMM algorithm and its characteristic technological innovation,
as detailed in Section 2.2. Offering users the ability to customize
the terms of their liquidity provision allows the protocol to keep
track of each individual contribution to the overall LP in terms of
trading volume facilitated, as well as the corresponding amount
of trading fees generated therefrom.

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 As such, the protocol offers three modalities of Asteroid Farms.

1. Based on Price Range: the CLMM distinctively enables

TangleSwap to incentivize highly-targeted flows of liquidity not
only towards specific token pairs but, importantly, towards
specific price intervals of interest as well, where Farm rewards are
distributed to liquidity providers based on their effective liquidity
contribution to the specified reward ranges, as illustrated below.

Figure 3. Formulae used for range-based farm reward distributions

2. Based on Fees Generated: in addition to allocating rewards based

on specific price ranges, the TangleSwap protocol is able to
distribute farm rewards in what is inherently the most
straightforward manner: based on the performance — e.g. the
amount of trading fees — generated by a specific user's liquidity.
The ability to reward only that liquidity which is actually being
used for trading within the ecosystem provides the unique ability
for maximum economic efficiency: as inactive liquidity that is not
being of service to traders is barred from rewards, active liquidity
is able to receive the full remuneration it fairly deserves — an
ability that has so far been lacking from traditional decentralized
exchanges and has significantly hampered the efficiency of
decentralized liquidity provision.

3. Smart Farms: in the long run, farm rewards issued by the protocol
will also leverage TangleSwap’s decentralized reputation system
(Void Energy accumulated, Section 3.2). The inherent ability to

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 trustlessly identify and consequently reward reputable liquidity
providers — i.e. those whose actions most benefit TangleSwap and
its token holders — is a major milestone in tackling one of the
biggest concurrent challenges of DeFi: mercenary capital13. By
incentivizing long-term synergistic relationships, we find that
users, protocol & liquidity providers see their respective best
interests align and cooperate in harmony with each other.

All the exclusive Asteroid Farm features mentioned above open the
door to a plethora of market-making strategies and respective
user opportunities, examples of which are illustrated below:

Figure 4. Example of how different types of reward distributions incentivize certain

behaviours in the markets by creating their own delimited flow of liquidity

To sum up, traditional Farms allow protocols to acquire additional

liquidity where it is most needed; TangleSwap’s Asteroid Farms
take the concept to the next level by providing market actors with
tailor-made solutions to their liquidity needs while ensuring
rewards are paid out with the utmost economic efficiency and
impact. And even though these benefits certainly improve the
protocol’s own reward issuance, the ability for all participants to
leverage these unique advantages provides TangleSwap’s liquidity
pools with an additional competitive edge that distinguishes it
from other DEXs within the IOTA ecosystem and beyond.

13
Mercenary Capital | Glossary: coinmarketcap.com/alexandria/glossary/mercenary-capital

11
 Interoperability is paramount for the long-term success of any
protocol. Allowing users to seamlessly and securely move their
funds across different platforms, wallets and ecosystems is as
fundamental as the right to self-custody of one’s own assets.

With this ethos in mind, and with security and trustlessness as

the utmost priorities, TangleSwap has developed a strategic
partnership with Multichain.org14 to integrate their Cross-chain
Router Protocol — commonly known as a Blockchain Bridge — as
part of our suite of DeFi tools. As quoted from the team:

Multichain is now leader in the cross-chain field with a rapidly

expanding family of chains, currently composed of 27 members
including Ethereum, Avalanche, Binance, Bitcoin, Fantom, Polygon,
IOTA/Shimmer, and many more. Its sustained daily volume of more
than $100 Million, its Total Value Locked in excess of $5 Billion, and its
thousands of daily users are testament to its popularity and security.

TangleSwap developed an in-house user interface to interact with

the Multichain bridge, thus leveraging a safe and battle-tested
solution to enable a smooth and trustless bi-directional flow of
capital between the most popular chains and the IOTA ecosystem.
Bridging assets has never been easier.

Users simply need to select their desired token, which is locked

up in a specific smart contract on the source (‘from’) chain, and
then a corresponding wrapped asset is minted on the target (‘to’)
chain. The reverse process (named redeeming) sees the burning of
the wrapped asset, and the original asset being released from the
smart contract back into the user’s wallet in the source chain.

14
Multichain Documentation: docs.multichain.org/getting-started/introduction

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TangleSwap’s Staking (Gravitational) Fields represent multi-purpose
infrastructure. First and foremost, staking fields enable the
generation of both steady yield and non-transferrable Void Energy
(see Section 3.2) by allowing users to stake $VOID — TangleSwap’s
native currency. VOID’s staking mechanism, and as such the
capabilities of the staking fields technology, have been carefully
designed and built with the relevant economic incentivization
considerations in mind. At every step of the process, behavioural
economics are taken into account to stimulate long-lasting,
sustainable, organic growth of the platform and underlying token
(a detailed technical explanation is provided in Section 3 below).

Furthermore, the innovative infrastructure provided by these

unique staking fields will further be made accessible to relevant
interested Web3 projects, companies, and other stakeholders, to
be used with their own respective tokens. Leveraging this “Staking
as a Service” model opens the door to significant savings on
infrastructure, know-how and development costs for partaking
projects, while benefiting TangleSwap users and VOID holders via
performance-based project fees and other revenue sources (e.g.
airdrops) generated through these services and partnerships.

One of our most popular dApps prior to launching, the TangleSwap

NFT Docking Stations grant access to yet another layer of utility and
potential for digital assets and cryptocurrencies, in line with our
vision to allow users to leverage DeFi’s full capabilities. As the
world of Non-Fungible Tokens matures past its early stages of
profile pictures and art speculation, progressively evolving
towards the adoption of real-world use cases such as tokenized
real estate, tickets, high-value physical assets, stocks or financial
derivatives, the relevance and usability of NFTs is expected to
increase continuously, permeating across numerous industries of
diverse natures. TangleSwap’s NFT Docking Stations represent

13
part of the necessary distributed ledger infrastructure destined to
become the digital counterpart to these real-life NFT use cases.

NFT Docking Stations allow users to stake their non-fungible

tokens from selected collections to generate passive yield in the
form of tokens and other unique rewards individually provided by
collection owners. Importantly, NFT Staking represents a crucial
part of a larger development scheme within TangleSwap’s product
palette: no matter the shape or form of the web3-native asset,
TangleSwap enables maximum utility and value extraction.

The inception of decentralized economies has opened the door for

worldwide investment opportunities freed from the high-entry
barriers and inhibiting burdens of traditional finance markets.
The ability to make promising seed and pre-seed investments is
no longer exclusively reserved for multinational corporations and
accredited investors.

TangleSwap’s Intergalactic Investment Hub builds on these

achievements and offers its users the chance to seek and invest
in well-fitting and potentially lucrative opportunities — based on
each individual’s risk appetite — while providing burgeoning
projects with an efficient and established fundraising platform.

Projects providing a token offering through TangleSwap’s

investment hub not only benefit from a streamlined and effective
funding process, but they also leverage privileged access to
TangleSwap’s ecosystem-leading, heavily engaged, broad
community of vibrant ‘explorers’. $VOID token holders benefit not
only from the platform’s increased usage, but also from the
participating projects’ success-fee remuneration to TangleSwap,
which goes directly towards token holders (see Section 3.1).

14
The $VOID token represents TangleSwap’s economic cornerstone.
By allowing organic protocol revenue to directly benefit $VOID
holders, long-term supporters get a tangible stake in the success
of TangleSwap. At the same time, the TangleSwap platform fosters
a thriving community of stakeholders invested in the platform’s
growth and financial fruition.

In the following, we lay out the mechanisms implemented to

support the continued growth and success of the token, as well as
the core drivers behind these functionalities.

While attracting users, revenue, and growth requires expenditure

in the form of token emissions, we deem it to be integral for token
holders to reap the corresponding rewards of such investments.
As such, TangleSwap directly translates platform success into
positive price pressure for its token, by having a portion of its
continuous revenue flow towards a market-buy & burn
mechanism: TangleSwap’s ‘Buyback–and-Burn Blasters’ (BBB).

On a technical level, organic protocol revenue stemming from

multiple sources is — in a first step — used to buy VOID directly
from the open market via TangleSwap’s own liquidity pools,
thereby not only benefitting liquidity providers with additional

15
 trading fees but moreover creating significant buy pressure for
TangleSwap’s native token. In a second step, the market-acquired
$VOID is then burnt, hence decreasing the total token supply and
thus furthering upward price pressure on the token. Such burn
mechanisms are currently planned for the applications laid out in
the following, although we expect BBB use cases to grow with the
number of live TangleSwap decentralized applications (dApps).

a) TangleSwap’s success is fueled by active trade on its token

markets. As such, 30% of the trading fees accrued in all of
TangleSwap’s liquidity pools fuel the Buy & Burn Blasters.

b) TangleSwap’s Genesis NFT collection15 was launched in

April 2022 and rose within a day to be the second most successful
NFT launch within the IOTA ecosystem. Ever since, the NFTs are
traded solely on the secondary market16, racking up a 5% NFT
royalty fee for every trade, which is then directed towards the BBB.

c) As part of TangleSwap’s vision to secure its long-term

sustainability, the protocol is set to not only ‘rent’ but also acquire
its own liquidity, which is thus indirectly owned by all token
holders. The full 100% amount of trading fees generated through
the Protocol-Owned Liquidity positions go towards the BBB.

d) Whilst presale opportunities on TangleSwap’s Investment

Hub (Section 2.7) are accessible to all interested parties, some
events might allow eager participants to directly contribute
tokens to the BBB, raising their token allocation in the process.

15
TangleSwap Genesis NFT | The Big Bang: nft.tangleswap.exchange
16
Soonaverse | A completely feeless NFT Marketplace on IOTA & Shimmer:
soonaverse.com/collection/0x287eb6a8c83a352debe57bf0f3a96f30ff734825

16
 What is Void Energy?

Having evaluated the challenges, successes, and hurdles of a

previous generation of applications in the decentralized finance
realm, the utilities and incentivization schemes behind the $VOID
token make use of an original and uniquely hand-crafted, yet
simple mechanism: the non-transferrable Void Energy.

At its core, Void Energy (VE) is a reputation system that allows

TangleSwap to circumvent an inherent drawback of decentralized
platforms: users are anonymous and free to create unlimited
accounts and wallets at their discretion, thus becoming virtually
untraceable for dApps. Unlike millions of Web2 and real-world
applications, generally Web3 applications have thus so far not
had the ability to track a user’s real usage of the platform.

Often, platform-specific benefits are provided to users holding a

pre-specified amount of tokens; and even though a system of this
manner provides a seemingly easy ‘reputation score’, it typically
falls short of providing a true measurement of a given user’s
contribution and loyalty to the platform. The simplistic nature of a
‘token-only’ measurement score lacks the relevant nuance and
details for it to become a fully-fledged trustworthy reputation
system, able to distinguish between true long-term supporters
and short-term opportunistic market participants.

Whilst TangleSwap and its permissionless applications welcome

every single user, we found that market history and research17
regarding a whole previous generation of DeFi applications has
highlighted the need for more advanced differentiation of user
types in order to secure efficient and mercenary-resistant token
emission schedules.

17
Vitalik Buterin | Decentralized Society — Finding Web3’s Soul: wrenchinthegears.com/wp-content/
uploads/2022/05/Vitalek-Buterin-Soulbound-Token-Paper-May-2022.pdf

17
How is Void Energy generated?

The design of VE achieves these goals by tying user reputation to

two scarce resources: $VOID, and time. As the single only method
to generate VE is by lock-staking the VOID token over a period of
time, Void Energy is not only inherently sybil-resistant, but it does
economically disincentivize malicious behaviour altogether.

On a technical level, staking VOID requires users to choose a

predetermined amount of time for the token to be locked. The
amount of generated VE is then calculated according to the
following formula, with time duration expressed in days:

Void Energy (VE) = Amount of staked $VOID x Total Staking Duration

Note that VE is produced upfront — that is, from the very start —
for the full chosen staking duration, while the underlying VOID
capital is irreversibly locked in the smart contract until the preset
duration expires; no stake reductions or withdrawals are possible
before then. In contrast, users are free to perform two actions at
any time: extend the total duration, or increase their VOID stake.

Having a minimum lock duration of 7 days enables users to stake

their tokens with a great amount of flexibility. Additionally, a
maximum staking duration of 1400 days provides for a wide range
of user-specific optimization possibilities. Once the duration set
by the user is reached (i.e. the staking round expires), the user
stops receiving rewards, at which point they can then freely
decide to re-stake or withdraw their VOID tokens.

Importantly, it should be noted that Void Energy is indeed a

precious resource: withdrawing a single VOID token will lead to the
loss of all accumulated VE. Much like in the real world, a good
(decentralized) reputation is hard to earn, yet easy to lose.

Note: in line with its purpose, Void Energy is strictly tied to its
user’s specific address. It is neither tradeable, nor transferable.

Whereas the Void Energy mechanism grants everyone the ability

to build up a good reputation over time, users wanting to
unmistakably prove their ‘skin in the game’ and long-term
support for the platform in a shorter period of time are
empowered to do so by choosing a longer staking duration,
thereby instantly unleashing the total of VE that the VOID tokens
would have otherwise generated — in equal amount — over the
period of multiple shorter staking rounds.

18
Figure 5. End-to-end conceptual diagram illustrating the Void Energy mechanism

19
 For full clarity, let us examine four arbitrary examples, sorted in
decreasing order of VOID rewards from User A > User D:

1st January 11th January 29th January

Initial Stake: 1k VOID (stake expires,

User A Initial Duration: 28 days — VOID reward stops)
Balance: 1k * 28 = 28k VE Balance: 28k VE

Initial Stake: 1k VOID Extend: +7 days (stake expires,

User B Initial Duration: 21 days (same stake: 1k VOID) VOID reward stops)
Balance: 1k * 21 = 21k VE Balance: 21k + 7k = 28k VE Balance: 28k VE

Initial Stake: 500 VOID Increase: +500 VOID (stake expires,

User C Initial Duration: 28 days (remaining: 18 days) VOID reward stops)
Balance: 500 * 28 = 14k VE Balance: 14k + 9k = 23k VE Balance: 23k VE

Initial Stake: 500 VOID (stake expires,

User D Initial Duration: 28 days — user withdraws VOID)
Balance: 500 * 28 = 14k VE Balance: 0 VE

What advantages does Void Energy provide?

The concept of Void Energy reaches its full potential only by being
linked to platform-inherent advantages exclusive to VE holders.
The following list outlines an initial overview of the benefits that
the Void Energy enables for any given user:

a) The decentralization of the protocol’s governance is a

pillar of TangleSwap’s vision. Yet, token-only governance systems
have repeatedly failed18 to provide an adequate framework to unite
stakeholder interests. By allowing VE to be the exclusive source of
governance voting power, TangleSwap maximizes alignment
between long-term token holders and the protocol’s execution.

b) A dedicated portion of the VOID supply goes directly

towards those that have tangibly demonstrated their long-term
commitment. Therefore, the full amount of total VOID staking
rewards is allocated based exclusively on each user’s relative
amount of VE, rather than on their VOID — or any other — holdings.

18
Vitalik Buterin | Moving beyond coin voting governance: vitalik.ca/general/2021/08/16/voting3.html

20
 c) Economically aligning liquidity providers with
TangleSwap’s long-term success is paramount to securing a
healthy token economy. As such, a portion of farming rewards will
be accessible only to those liquidity providers that have proven
their skin-in-the-game by having generated Void Energy. By
incentivizing liquidity providers to continuously build up VE, we
ensure that those with a mutually-beneficial, long-lasting
commitment to the TangleSwap protocol are correspondingly
rewarded.

d) TangleSwap’s trading discounts allow high-volume and

high-frequency traders alike to maximize their profit potential. By
tying trading discounts to a specific reputation score in the form
of VE, traders are incentivized to not only temporarily acquire
VOID, but rather join the community for the long haul.

e) Investment Hub access: TangleSwap bridges the gap

between IOTA & Shimmer developers and the broader ecosystem
by allowing the community to participate in our Investment Hub
events from projects launching on TangleSwap. In order to gain
early access for participation in these events, Floating Relaxation19
Utility NFTs — or to some extent VE — is a requirement. VOID token
usage may also be a plus when participating in these events, to
allow increasing individual token allocations.

19
Floating Relaxation | TangleSwap Genesis NFT: nft.tangleswap.exchange/piece/floating-relaxation

21
 The VOID token reaches a total supply of 100 Million after a period
of 2 years. The token emission rate beyond that point in time will
be strategically decided upon by decentralized token-holder
governance. The initial distribution of VOID is allocated as follows:

Figure 6. Distribution chart for the $VOID utility token

1. Protocol Incentives: token incentives are distributed to liquidity

providers and VOID stakers in order to secure deep, sustainable,
market-leading amounts of liquidity for the DEX. Whilst a majority
is distributed via farming and staking rewards, future acquisition
of protocol-owned liquidity can pose a valid alternative for parts of
the relevant token allocation.

22
 2. Community Airdrops: the total airdrop allocation will be broken
up into multiple events at different points in time. All details on
how to qualify will always be communicated in due time, with
some date-specific information being withheld for strategic
reasons until a snapshot or similar measure has been conducted.

3. Marketing & Advisors: a small percentage of tokens is allocated

to cover marketing and growth expenditures designed to fuel the
continued expansion of the TangleSwap platform.

4. Core contributors: token fraction allocated to individuals

developing the core protocol, based on contributions made.
Release schedule: 4-month cliff + 10-month linear vesting.

5. Presale: token allocation reserved for allowing strategic investors

and holders of the Ascension20 NFT to acquire VOID, thereby
securing funding to successfully deploy, grow, and further the
development of the protocol. Release schedule: 2-month cliff +
10-month linear vesting.

6. Initial Protocol-Owned Liquidity (POL): the initial amount of VOID

subtracted from the TangleSwap treasury to be combined with
Shimmer to ensure a deep enough VOID/SMR liquidity pool that
provides for an extra layer of security against volatility for early
traders. This initial liquidity is owned by the protocol and thus by
all of its token holders. The initial POL also provides for a
perpetual baseline revenue stream for all token holders.

20
Ascension | TangleSwap Genesis NFT: nft.tangleswap.exchange/piece/ascension

23
 While there are numerous promising DLT projects within the
crypto space, the IOTA protocol21 is a perfect fit for TangleSwap’s V1
product palette and the continuous execution of its vision.

The core of IOTA is a novel algorithm — the ‘Tangle’ — built using

the technology of a Directed Acyclic Graph (DAG) to create a
hyper-scalable, efficient, and decentralized protocol. It vastly
exceeds the traditional performance of a Blockchain by using a
parallelized approach to the transfer of value and data: regardless
of the number of simultaneous transactions, validation times are
always fast. Forbes suggests that DAGs are the next natural step
for the industry22; we share the vision that blockchain
architectures like IOTA are what the future of DLT looks like. Some
other remarkable examples of blockchains with DAG-based
innovation can be found in Aptos23, Fantom24, or Avalanche25.

Shimmer26 can be described as “the twin network of IOTA”: a scalable

and feeless network enabling frictionless Web3 economies,
launched as a ‘canary’ network to battle-test all future
innovations for the IOTA protocol. It is a multi-asset ledger that
not only introduces full EVM smart-contract compatibility to the
ecosystem, but it also enables never-before-seen features such as
the ability to tokenize everything (NFTs, real-world assets,
stablecoins, fan tokens…) natively on Layer 1 without any fees,
minting or transaction-wise.

21
Shimmer EVM | Technology Overview: shimmer.network/technology
22
Explaining Directed Acylic Graph (DAG), The Real Blockchain 3.0: forbes.com/sites/shermanlee/
2018/01/22/explaining-directed-acylic-graph-dag-the-real-blockchain-3-0
23
Aptos Labs: aptoslabs.com
24
Fantom: fantom.foundation
25
Avalanche: avax.network
26
Shimmer — Beyond Blocks | Zero Fees, Endless Possibilities: shimmer.network

24
 One of IOTA’s and Shimmer's core strengths is the unique ability
to provide a 100% feeless base Layer 1, which not only allows for
gas-free transactions and value transfers, but as such enables
trustless decentralized applications (dApps) like TangleSwap to
provide users with the most minimal amount of total fees
possible. In light of how transaction fees of previous generations
of dApps pose significant entry barriers, TangleSwap users are
now freed from these economic burdens, opening the door to
high-frequency traders and mainstream adoption.

Most importantly, however, our protocol benefits from IOTA’s

interoperability to lay the foundation for TangleSwap’s long-term
plans: becoming a global hub for decentralized finance for the
whole crypto and Web3 space. Developments of recent years have
continued to prove that the future of cryptocurrencies and
decentralized assets is multi-chain. IOTA’s technical capabilities
allow it to be well-positioned to seamlessly become ‘Layer Zero’,
acting as a permissionless and hyper-scalable bridge for the
whole realm of distributed ledgers. This unique feature holds
especially true for the IOTA tokenization framework, which allows
any token and any NFT to live inside the Tangle and inherit its
feeless and scalable nature.

These technological innovations and features native to the IOTA

Tangle, combined with a flourishing community27, a powerful
developer base28, and a wide-reaching business ecosystem29 (incl.
IOTA being selected by the EU to become the official European
Blockchain Services Infrastructure network30), enable TangleSwap
to continuously expand its user base and derive an increasing
stream of sustainable revenue from an ecosystem with highly
promising growth prospects — while the impeccable timing in
terms of development timelines ensures the platform is perfectly
positioned to execute its vision from the very genesis block.

27
Shimmer Mainnet launch announcement: twitter.com/shimmernet/status/1570427229997338624
28
Shimmer — Ecosystem Overview: shimmer.network/ecosystem
29
Infographic | IOTA Business Ecosystem: files.iota.org/media/IOTA_Business_Ecosystem.pdf
30
IOTA as the official EU Blockchain Services Infrastructure partner: iota.org/solutions/ebsi

25
TangleSwap launches with a host of seven non-custodial
applications that provide users with the latest innovations and
relevant tools to capitalize on the full potential of decentralized
finance: (i) Multi-route Trading, (ii) Concentrated Liquidity Pools,
(iii) Multi-modality Farms, (iv) Cross-chain Bridge, (v) NFT Staking,
(vi) Vote-escrowed Staking, and (vii) Investment Hub Launchpad. As the
Web3 space grows, global cryptocurrency use cases progress, and
tokenization efforts come to full fruition, TangleSwap will
continuously advance its application offering to cater to the
trustless needs of professional DeFi users and mainstream
participants alike.

Moreover, being built on top of the IOTA protocol enables the

platform to be perfectly positioned to capture future growth and
seamlessly scale along an ever-expanding number of Web3 users.
At the same time, the economic incentive schemes, value creation
mechanisms, and continuous positive price pressure infused into
the VOID token foster the perfect conditions for a sustainable
token economy.

As token holders directly share in the success of the platform and

long-term supporters are valued and rewarded accordingly,
TangleSwap lays the foundation to develop its vision into a reality:
becoming a leading hub for decentralized finance across the
global cryptocurrency and Web3 landscape.

Explorers, come and join us aboard the Tangleship!

The whole universe of DeFi is now within your reach.

26
Partner Organizations

WEBSITE // tangleswap.exchange

EMAIL // hello@tangleswap.exchange

BLOG // blog.tangleswap.exchange

DOCUMENTATION // docs.tangleswap.exchange
NFT // nft.tangleswap.exchange

TWITTER // twitter.com/TangleSwapE

DISCORD // chat.tangleswap.exchange

GITHUB // github.com/TangleSwap

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