About the Protocol
What is Swap?
Swap is a protocol for trading tokens on the Ethereum blockchain. Swap is uniquely built around the idea that peer-to-peer is the best design for trading on a decentralized computing platform like Ethereum.
What are tokens?
What is Ethereum?
Ethereum is a global computing platform where the Swap exchange is deployed as a smart contract. The tokens supported by Swap are also deployed as smart contracts on Ethereum.
Why would I trade tokens?
Today, the most common reason to trade tokens is speculation. However, as tokens and their utility evolve, trading tokens in some way will feel like trading access to decentralized apps. Imagine that when you’re done with one app you can trade it for another.
How do I use Swap for my project or business?
The Swap whitepaper is essentially a design document, so the protocol itself could be implemented in any number of ways. If you envision a good fit, we’d love to hear about your project and may be open to partnerships. Please reach us at email@example.com.
Why should I care about decentralized exchanges?
Centralized exchanges have a history of being compromised, putting their users at risk, and taking advantage of insider information based on what’s happening on their exchanges. Centralization can also be costly to users, as third parties are required and paid in order to maintain trust between users. Decentralization puts security in the hands of the individual and if compromised only exposes him or her rather than an entire customer base.
What is peer-to-peer?
Peer-to-peer (P2P) is a networking topology based on direct connections between peers in a flat, decentralized network. The alternative, client-server, is a centralized topology that lends control to centralized services. Peer-to-peer puts control into the hands of the peers themselves and allows prices to be communicated privately. Peer-to-peer is a design that has many applications, but within the Swap ecosystem, it’s utilized to connect counterparties and facilitate trading.
What is an order book?
An order book is a list of bids and offers placed by all parties that wish to trade a given asset in a market. Order books are public locations and historically are physically centralized, where matching is handled by a trusted third party. Because of limitations with scalability, privacy, and the possible introduction of race conditions, it is our thesis that putting an order book on the blockchain is difficult and naturally incompatible. Our peer-to-peer design does not share these limitations.
How is Swap different from Poloniex?
Poloniex is a centralized order book that holds balances on your behalf. Swap does not use an order book and does not hold balances on your behalf, significantly reducing the risk of hacks.
How is Swap different from ShapeShift?
ShapeShift performs trades as your sole counterparty, taking a fee on each transaction. Swap enables you to connect with any other peer to perform a trade.
How is Swap different from EtherDelta or 0x?
How is Swap different from Bancor?
Bancor offers price discovery in smart contracts, while Swap allows for price discovery to happen off-chain.
About the Token
How does the token work?
The Swap token is a license to access Swap services within the token trading ecosystem. Its design is simple and provides utility in the form of binary access to ecosystem services. The token itself is ERC20-compliant, but becomes licensed when a minimum amount is locked. To obtain a license, lock a minimum token balance as indicated by Swap services. As market conditions change, this minimum balance may adjust.
Why did you choose this design?
In order to be truly peer-to-peer, we wanted to design our exchange without transaction fees. We believe a third party collecting fees, or “rent”, goes against the ethos of peer-to-peer, so we’ve opted for a one-time license.
Why are you launching a token?
We are not charging fees, therefore have no way to finance our operation. The token is a method of fundraising so that we can build and deliver products for the community.
What will you use the funds for?
We will use 100% of the funds for the development and promotion of the Swap ecosystem.
What are launch details?
We’ll be releasing more details as we progress. Stay tuned for updates.
About the Team
Who is on the team?
Swap is a team of financial technology, product, blockchain, and security experts. We are passionate about building and delivering great products for the crypto community.
Where is the team based?
Swap is a distributed organization with team members in Brooklyn, Paris, London, and Los Angeles.
Are you hiring?
If you’re interested in joining our team, we’re hiring full-time software engineers. Please have a look at our jobs page.
How can I help?
If you are interested in helping us out or being involved in any way, please reach us at firstname.lastname@example.org, we’d love to hear from you.