Overview
StreamSwap allows stakeholders, known as Streamers and Subscribers, to create and participate in streams. Streamers initiate a stream by locking a fixed amount of tokens (Token 1 or T1), which are intended to be exchanged for an accepted token (Token 2 or T2) over a fixed time period. Once a stream is established, T1 cannot be added or removed until the end of the streaming phase.
The initial launch of StreamSwap was used for the launch and price discovery of the $FLIX token. FLIX was the T1 token and OSMO was T2. However, the protocol has since expanded to include $ATOM as an additional T2 token for the $FLIX stream.
Mechanism and Phases
The functioning of StreamSwap is divided into two distinct phases: the Bootstrapping Phase and the Streaming Phase.
During the Bootstrapping Phase, which takes place between the creation of a stream and its start time, Subscribers can deposit or withdraw their T2 tokens at any time. No swapping of tokens occurs during this phase. Instead, Subscribers receive shares for depositing T2 and have shares deducted when withdrawing T2 tokens.
The Streaming Phase commences at the stream’s start time and continues until its end time. Subscribers can deposit or withdraw T2 tokens throughout this phase. The token swaps occur linearly over the entire duration of the stream. T1 is streamed to the Subscribers, and T2 is streamed to the Streamer who initially locked T1. At the end of the Streaming Phase, the process of price discovery takes place.
