A Fragmented DeFi Space Serves No One - Here's How We're Fixing DeFi

This year, the mainstream financial markets have been in a state of near-constant panic over the ongoing fallout from the COVID-19.

As a result, there was a surge in interest in cryptocurrencies as a safe haven asset to help nervous investors ride out the crisis, and that interest has shone a bright light on the world of decentralized finance (DeFi), which has only grown throughout the year.

The value proposition of DeFi is that it removes costly middlemen from a variety of investments and transactions. And at a time when investors are looking to save every penny, that's a big deal.

But the problem with today's DeFi landscape is that it's quite fragmented. That means investors have to get involved with several platforms at once to meet their needs. We believe the flurry of development is making DeFi a little too decentralized to be useful to the average person.

But that's what we at SwapDEX are looking to change. In the simplest terms, we're working on building an all-in-one platform that encompasses the best today's DeFi ecosystem has to offer alongside a complete decentralized token exchange system.

We think that it's a much better approach than what's available today. But you don't have to take our word for it. Instead, come along on a journey with us to understand why we're building SwapDEX.

You'll discover what market problems we believe it solves, how it works, and how we believe it improves on existing DeFi solutions.

What is SwapDEX?

To understand why we think SwapDEX is such a big deal and how the crypto community might benefit from it, you must first understand exactly what the platform has to offer.

In a nutshell, SwapDEX is an Ethereum-based hybrid protocol meant to facilitate P2P token swaps and other crypto transactions through a fully-decentralized P2P exchange. It's similar to the current market heavyweight Uniswap - but improves on it in a few key areas.

First, we've built in some features that Uniswap doesn't have, such as stock market-style limit orders. That simple addition should make it possible for crypto-traders to use SwapDEX's wallet-to-wallet direct trading system just like they would with any other traditional exchange without fear of losses due to market swings.

That brings it more in line with 3rd-party crypto exchanges, which in itself is no small thing. But that's not all.

SwapDEX also has more to offer. We've replaced the cumbersome standard crypto-exchange interface with one that's more suited to experienced asset traders.

We designed the platform to bring a variety of investment opportunities together under a single umbrella. Users can, for example, contribute to liquidity pools to earn a cut of the fees charged to projects that use them. And those who choose to buy into the SwapDEX project itself gain even more options.

Built for Stakeholders, Run by Stakeholders

We've built the SwapDEX ecosystem to benefit its users by allowing them to become stakeholders in the project itself. For that reason, holders of the platform's native SDX token have the opportunity to help shape the direction of the platform by voting on proposed changes and additions to the system.

They can also leverage their holdings for more gains through a variety of in-platform investment options.

The most important among them is SwapDEX's staking platform, within which SDX holders can earn a share of trade fee profits as well as earnings derived from other crypto projects who use SwapDEX's services.

Holders of SDX can also take out in-house loans based on their equity or make their holdings available for others to borrow for a prearranged interest rate. This not only reduces the need for SDX holders to sell their holdings on the open market when they require liquidity, but also provides yet another opportunity for stakeholders to earn.

And because the whole platform operates only through the consent of stakeholders, it's deliberative by design and will evolve to suit its community's needs.

We believe that it's critical for DeFi projects to be community-governed and we've designed the whole SwapDEX platform to guarantee it will always remain so.

Putting User Privacy First

When cryptocurrencies were first created, the whole point was to create a financial system divorced from government and other third-party control. But as the years have passed, much of the cryptocurrency world has become centralized via a few major exchanges.

We thought that outcome was antithetical to what crypto should be about – and we're determined that SwapDEX won't go in the same direction.

For that reason, SwapDEX works to guard user privacy by requiring no sign-ups to use its services.

It doesn't adhere to any know-your-customer or anti-money-laundering procedures, opting instead to remain an entirely neutral platform. In other words, we don't view our users as customers and aim to be a completely neutral and anonymous service provider.

And that same philosophy extends to other parts of the SwapDEX platform.

To encourage easy adoption of our services, we charge no fees for new projects seeking to list their tokens on our exchange. that's because the whole point of SwapDEX is to unite as many amazing DeFi projects under one roof as possible, not to line our own pockets.

Instead, we're prioritizing adding new listings to give SDX holders an ever-increasing number of investment options as they gain privileged access to the projects that come on board.

The Bottom Line

All of this adds up to one inescapable fact: SwapDEX is built from the ground up to be private, safe, and user-centric in everything it does. We want it to embrace the best aspects of the DeFi concept while going back to the privacy-focused core of the original grand cryptocurrency experiment.

At the same time, we want to provide a one-stop-shop for users to buy in and manage their DeFi and crypto holdings that streamlines the process and puts an end to market fragmentation (without trying to own it, ourselves).

We think SwapDEX is what the future of DeFi should look like. And if you think so too, we invite you to join us for the ride.