Note: Switcheo TradeHub has been renamed to Carbon and will be relaunched as a new chain. All mentions of Switcheo TradeHub in this article refer to the new Carbon chain.

Stargate, a befitting name for a set of upgrades that will enable instant communication and interoperability throughout the Cosmos ecosystem. The Stargate upgrade represents the culmination of the original vision of the Cosmos team, dating back to the original whitepaper published in 2016. Five years later, that vision is about to be made reality.

Switcheo TradeHub is one of many projects that utilise Cosmos-SDK as an underlying technology and is currently in the midst of completing the Stargate upgrade. Below, we dive into what the upgrade will bring to the protocol and what users can expect for Switcheo TradeHub in time to come.

Inter-blockchain Communication (IBC)

The Inter-blockchain Communication (IBC) protocol can be easily supported after the Stargate upgrade. Perhaps the most anticipated event since Cosmos’ early beginnings, IBC will enable protocols, applications and wallets that utilise Cosmos technology (aka Cosmos-SDK) to interoperate and communicate with each other seamlessly. This is an astronomical step forward for projects within the Cosmos-SDK ecosystem, as DeFi users will be able to seamlessly transfer assets between platforms such as Demex, THORchain, Kava, Terra. A whole new DeFi universe is in the making - and it is being built via IBC!

ICS-20 tokens on Demex

Switcheo TradeHub will be able to support cross-chain trading of ICS-20 tokens (such as ATOM) against tokens from the Ethereum, Neo and Binance Smart Chain (BSC), with more supported chains to come. This not only means that tokens on Cosmos blockchains can be traded against ERC-20, BEP-20 and NEP-5 tokens on Demex, but true cross-chain liquidity pools for these tokens can also be created to earn yield! The addition of ICS-20 markets on Demex will also see SWTH stakers earning these tokens in the form of trading and fees.

SWTH on Cosmos

A new ICS-20 standard token for SWTH will be created upon the launch of IBC, opening more doors for SWTH to be traded on and transferred across the various Cosmos protocols, thereby increasing the utility and liquidity of the Switcheo Token! For example, SWTH can be potentially listed on Gravity DEX - Cosmos’ ICS-20 interchain exchange, providing users yet another avenue to acquire SWTH while improving its discoverability from the wider Cosmos user base.

Performance & Protocol Improvements

A key component of Stargate is the Protobuf Migration. The Migration improves the core encoding format of Cosmos SDK based blockchains like Switcheo TradeHub, and will bring huge improvements in the form of faster transactions, lower gas costs, and more transactions per block.

Enhanced transaction throughput

With this change, transaction throughput and TPS is expected to increase by 10x to 100x! This is a key improvement for Switcheo TradeHub, allowing platforms like Demex to handle the growing volume of cross-chain transactions. The increased efficiency brought to Switcheo TradeHub will also lower the hardware requirements for validators securing the protocol. With a lower entry bar, we foresee more validators joining in, further decentralizing the protocol.

EVM Compatibility

Stargate will also bring Ethereum Virtual Machine (EVM) compatibility to Switcheo TradeHub, whereby users will be able to connect their Metamask wallets directly with the protocol. This removes the need for a separate mnemonic and key to be generated for Switcheo TradeHub. Instead, a single address can be used for both Ethereum, BSC and Switcheo TradeHub wallets, allowing for transactions to be signed directly using Metamask or other Web3 wallets. Very soon, you’ll be able to deposit and trade directly from your wallet, as if you are using a native Ethereum or BSC dApp!

Ease of Protocol Development

As advocates for decentralization, opening development of the protocol to the community is one of Switcheo’s key priorities. Now, Stargate makes it even easier for developers to build atop the Switcheo TradeHub protocol through the Protobuf Migration and the introduction of full-featured light clients.

New standard for composability

The Protobuf Migration introduces a new standard for composability and supports a wider range of programming languages, making it easier for developers to interact with Switcheo TradeHub. The improved composability architecture will enable faster and more reliable UIs to be built while facilitating more fluid interaction of various UIs across various Cosmos-SDK protocols. In the future, interfaces built on Switcheo TradeHub will also be able to communicate more seamlessly the applications already running on Cosmos (over 200!), ranging from exchanges and wallets to insurance, gaming and marketplaces.

We anticipate this will further drive the growth of the protocol by attracting more developers to build on Switcheo TradeHub. This will then accelerate us towards the vision of having  fully decentralized protocol development. If you are interested in building on Switcheo Tradehub, please refer to this article on how to reach out and receive funding.

More applications, less resources

Light clients are yet another component that will be introduced to Switcheo TradeHub thanks to the Stargate upgrade. They are alternatives to full nodes that require much less computing resources and storage, making them much more efficient for developers to build on.  

Light clients on Switcheo TradeHub can be used to build wallets, explorers and many more applications without needing to rely on full nodes that are run by Switcheo and other validators. With less resource requirements needed to build scalable and high-performance applications, light clients bring boundless potential for what can be developed on Switcheo TradeHub, paving the way for more rapid expansion of products and features that run on the protocol!

A New Era for Interoperability

The Stargate Upgrade marks the realization of the original Cosmos vision and presents newfound possibilities for Switcheo TradeHub with its promise of greater interoperability, heightened performance and improved developer ease-of-use. It brings a whole new dimension to participating protocols and has the potential to reshape the DeFi landscape as we know it. Landing on Switcheo TradeHub soon, read more on the Cosmos Stargate Upgrade here.