Through a flexible combination of tools, TrustSwap helps project parties complete the entire process from financing, currency issuance to secondary market transactions, which greatly reduces the threshold for DeFi participation.
Author: face-to-face
DeFi (Decentralized Finance) is undoubtedly the hottest investment area in the blockchain right now. Even after experiencing negative events such as “3·12”, code bugs, and founder smashing, there are still a large number of users eager to participate in DeFi. According to DeBank data, the total amount of DeFi locked up on March 12 was US$670 million. In just 6 months, the total amount of DeFi locked positions has exceeded 10 billion US dollars, an increase of more than 10 times.
Most of the hot words in the DeFi field such as staking, liquidity mining, farming, etc. can be summarized as pledge mining, that is, users pledge a certain amount and time of digital assets, and gain income by contributing their own asset liquidity.
And DeFi’s liquidity mining can gain widespread attention in a short period of time, the main reason is that it far exceeds the high yield of traditional investment. But be vigilant, high returns are often accompanied by high risks. Just as the ICO market was hot in 2017, thousands of blockchain projects were mixed together. Due to the lack of supervision, many project parties went off the road, resulting in heavy losses for users.
Moreover, the possibilities of DeFi are not limited to transactions, pledges and lending. Many conventional businesses in the traditional financial industry, such as payment, equity financing, insurance, etc., are still waiting for blockchain entrepreneurs to explore and explore. To meet the complex financial needs of the real world, the existing DeFi products are obviously not enough, and the entire infrastructure needs to be improved and upgraded. Moreover, without DeFi in actual application scenarios, no matter how high the income is, it is nothing but castles in the sky.
Demand and inspiration from traditional venture capital
To cite the simplest example, token financing. The reason why the ICO bubble burst in 2017 was that a big factor was that after a certain project was funded by tokens, the fund library could not be locked well. In January 2018, Vitalik Buterin, the founder of Ethereum, proposed a DAICO (DAO + ICO) improvement plan. Simply put, it is to set some restrictions on the smart contract and release the corresponding funds to the project party in phases, such as when the project progresses smoothly and reaches a certain milestone stage. This can not only give pressure and motivation to the blockchain project, but also guarantee the interests of investors to a certain extent.
As the crypto asset market fell into a downturn, the realization of this idea seemed to be shelved.
Of course, some entrepreneurs with broad vision and long-term vision are still trying solutions in this area. The TrustSwap project that this article will focus on is an example of this.
Jeff Kirdeikis, CEO of TrustSwap, understands the needs and limitations of the traditional venture capital industry. He once described a real scenario: A VC venture capital company invested in an encrypted token project, and the project party promised to give VC corresponding discount tokens. However, the project team does not want VC to sell it on the market at one time after getting the token, because this will cause the price of the token to plummet. Based on such concerns, the project team hopes to be able to transfer tokens in batches.
If it is in the field of traditional investment, this requires a lawyer to act as an intermediary for execution, and the lawyer will charge 5%-10% of the fee, which is an expensive fee. But in the field of blockchain, this problem seems to be very easy to solve, because this function can be realized only through the smart contract of the blockchain, and the difficult-to-tamper feature of the blockchain will ensure the automatic execution of the smart contract. This requires a very low cost.
Obviously, most of the existing DeFi projects still cannot accomplish the above tasks. Jeff Kirdeikis could not find DeFi products that can provide similar services, so the “highway” TrustSwap of the DeFi world was born.
The rise of the blockchain market has attracted a large number of traditional companies to raise funds through equity tokenization. This type of enterprise has professional accumulation in certain fields, but the emerging technology of blockchain has a high technical threshold for them. Whether it is hiring developers in the blockchain field or looking for a pass-through outsourcing service, it will bring great costs to corporate financing.
The emergence of TrustSwap related products provides them with a solution to this problem.
TrustSwap Smart Series: Make DeFi more “smart”
In addition to the token locking mentioned above, TrustSwap is actually a more comprehensive DeFi ecosystem of smart contract services, including smart custody, smart transactions, smart locks, etc. Simply put, the infrastructure built by TrustSwap can make DeFi smarter to meet the needs of different scenarios.
SmartLock (smart lock) provides a variety of time and event-based functions, which can be understood as Vitalik Buterin’s realization and supplement of DAICO. Through SmartLock, project parties can show the community their confidence in the progress of the project and gain the trust of investors. And by restricting the release of tokens from early investment institutions, it can also encourage early investors to continue to pay attention to and assist in the promotion of the project, increasing the probability of success of the project. In addition, SmartLock’s functions will continue to expand, such as setting more complex token transfer rules to meet actual needs.
SmartWrap (Packaging and Service) can package non-Ethereum assets and allow these assets to interact on-chain on Ethereum. Through SmartLock+SmartWrap, blockchain project parties can conduct safe, convenient and low-cost financing and currency issuance activities, that is, SmartLaunch. According to the official introduction, there are already 30-40 blockchain project teams hoping to raise funds through SmartLaunch. However, because it is still in the early stage of deployment, officials are more inclined to select specific high-quality projects.
SmartSwap (Smart Transaction) is a decentralized OTC transaction system. Even strangers can sign smart contracts through SmartSwap to complete corresponding transactions. Compared with DEX on the market, SmartSwap can better meet specific needs.
SmartSubscription (smart subscription) is more suitable for real-world application scenarios, such as regularly sending pocket money to children, paying various bills on a regular basis, and so on. There are various other application scenarios, but compliance aspects may be involved, so I won’t start here.
One-stop DeFi solution, more convenient
TrustSwap provides a wealth of DeFi tools. Through a flexible combination, it can not only meet the needs of blockchain transactions, financing, and lending, but also reduce the threshold for users to participate in DeFi. The entire process from financing, currency issuance to secondary market transactions can be realized through TrustSwap, and the project party can get a one-stop convenient experience. At the same time, TrustSwap also provides an interactive interface for users to easily view smart contracts, subscription payments, historical transactions and escrow items, and payment schedules.
In addition, TrustSwap takes privacy and security very seriously. TrustSwap operates in a non-custodial (Non-Custodial) mode, and can never embezzle the assets locked in its smart contract. These assets can only be owned by the legal private key owner or the beneficiary of the contract. The relevant information is also completely User processing. TrustSwap is like building a highway, connecting the future, and allowing DeFi to quickly move to the real world.
TrustSwap: Back to the roots and help DeFi enter traditional finance
The lock-up scale of liquid mining has increased by more than 10 times in just six months, which indeed makes people feel the popularity of DeFi. However, the scale of US$10 billion is only a fraction of the traditional centralized finance. After all, the market value of the entire encrypted digital asset is only trillions, and it is not even as good as the stock valuations of several leading companies.
No one has ever doubted the development potential of DeFi. Decentralized finance represents the backbone of the future global economy. A study conducted by Juniper Research, a market intelligence company, shows that by the end of 2030, financial institutions that deploy blockchain technology will save more than $27 billion in cross-border settlement transactions. Through blockchain transactions, costs will be reduced by more than 11%.
The market size of financial services such as custody, multi-party transactions, and regular payments has now exceeded $26 trillion, and there are currently no other solutions in the DeFi field. According to TrustSwap official estimates, the potential market involved in TrustSwap will exceed US$72 billion.
The founding team of TrustSwap has accumulated more than four years of experience in the field of cryptocurrency, covering various fields of crypto project incubation, consulting, and blockchain development. With the Smart product matrix that can meet the needs of the real financial world and the ability to quickly iterate, TrustSwap has great confidence in its future market share and helping DeFi enter traditional finance.
MobiePay: TrustSwap selected premium projects
Since August 2020, TrustSwap has successively completed the development of TrustStake (trusted pledge) and SmartLock. With the official release of SmartLock, it also means the official launch of the TrustSwap mainnet. As mentioned above, TrustSwap’s token sale platform SmartLaunch will only open channels for high-quality blockchain projects in the early stage, and MobiePay is undoubtedly a high-quality project carefully selected by TrustSwap.
The MobiePay project was founded in October 2018. After nearly two years of precipitation and development, the launched APP products have realized the interaction of mainstream cryptocurrencies such as BTC, ETH and Stellar with the real world, including foreign exchange, payment, charitable donations and communities Reward and so on. With the continuous increase of MobiePay’s ecological partners worldwide, people will enjoy faster, more convenient and low-cost cross-regional DeFi services through MobiePay.
The development direction of MobiePay perfectly matches the concept of TrustSwap. MobiePay can build a more complete DeFi service based on the underlying architecture of TrustSwap and jointly promote DeFi’s entry into traditional finance.
As an innovator in the DeFi world, TrustSwap has won the attention of crypto asset enthusiasts worldwide, including the Chinese community, in a very short time. The TrustSwap platform also has the ERC 20 standard governance token SWAP, with a total supply of 100 million, which can be used for service discounts and equity pledge income. In addition, SWAP can also be used for community voting to determine major improvements to TrustSwap in the future.
Leading the development trend of future DeFi
The essence of DeFi is to build trustless, anti-censorship, permission-free decentralized financial services based on blockchain and smart contracts. The purpose is to compensate or even replace the existing centralized financial services. Only by combining it with traditional finance can we usher in a broader space for development.
But looking at the existing DeFi market, the liquid mining platform is more like a traffic portal, attracting users to participate in staking through high revenue. And users do not consider whether there is valuable support behind the high revenue, which is undoubtedly turning the cart before the horse. SushiSwap’s easy stealing of UniSwap “fruits” through forks also reveals that the current DeFi products do not have core value functions.
As the world’s demand for trustless transactions is becoming greater and greater, the crypto world and the traditional financial world will further merge, but is DeFi really ready? TrustSwap, which truly focuses on practical financial applications, may become the vane of DeFi in the second half, and even lead the future development trend of DeFi. We will wait and see.
