Overview
Netswap is one of two primary DEXs on the Metis Andromeda L2, competing directly with Tethys Finance for the chain's limited DeFi activity. The protocol provides standard AMM swaps, liquidity farming, and basic DeFi functionality. Having two competing DEXs on a chain with minimal activity is counterproductive — it fragments already-thin liquidity between two protocols that would both benefit from consolidation.
Smart Contracts
Standard Uniswap V2-fork AMM contracts with farming modules. No meaningful technical differentiation from Tethys or any other V2-style DEX. The contracts handle pool creation, swaps, LP token minting, and reward distribution in a standard fashion.
Security
Limited audit information available. Similar to Tethys, the small TVL means minimal attack incentive. The Uniswap V2 base provides a well-tested foundation, but deployment-specific risks remain unaudited.
Liquidity
Very low liquidity, further fragmented by competing with Tethys for the same limited pool of Metis DeFi capital. Most pairs have thin depth and the combined liquidity across both Metis DEXs would barely be adequate for a single protocol.
Adoption
Minimal adoption constrained by Metis ecosystem size. Netswap and Tethys split the small Metis user base, meaning neither achieves the critical mass needed for a healthy DEX. Without chain-level growth, adoption is capped at a low ceiling.
Tokenomics
NETT token is used for farming rewards and governance. Standard emission model with the same sustainability challenges as Tethys. Low trading volume means negligible fee revenue, making the token purely emissions-dependent.
Risk Factors
- Metis L2 has minimal DeFi adoption
- Liquidity fragmentation with Tethys hurts both protocols
- Very thin order books create poor trading experience
- Token value is purely emissions-driven with no organic demand
Conclusion
Netswap is functionally identical to Tethys Finance and shares the same ecosystem-level problems. The 1.9 score reflects adequate but unremarkable technology on a chain that hasn't delivered DeFi adoption. Two competing generic DEXs on a quiet L2 is a net negative for both.