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Swipe launches new Defi app and governance token for the Binance chain

Swipe, a digital asset wallet and debit card platform, has just announced that it will soon be launching a decentralized lending and borrowing application on the Binance smart chain platform.

The Swipe Network is a payment protocol that enables real-time crypto-to-fiat conversions for wallet, debit card and issuance services. The platform white paper outlines Swipe’s mission to build a product line “tailored and aimed towards financial inclusion to users worldwide with as little as a smartphone and internet connection.” The project raised US$12 Million in August 2019 through private and public token sales.

The Swipe crypto network utilizes a digital wallet for users to deposit, store, and withdraw their cryptocurrencies. This wallet connects with a Visa debit card, called a Swipe card. The Swipe Networks native token, Swipe (SXP), can be used for paying for transaction fees on the network, as a medium of exchange when making debit card payments, and to receive discounts on the fees.

80% of transaction and withdrawal fees in SXP token are automatically burned on-chain. Once network staking is enabled users will receive 12% APY on their staked SXP within the Swipe Network. Swipe also plans to enable staked SXP to earn the processing fees it charges in the future, on top of the rewards from staking.

The Swipe Network conducts conversions of cryptocurrencies in real-time and utilizes the off-chain Swipe API for processing transactions. There is also a reserve system in place to lock SXP and guarantee that the merchant and payment networks receive the exact fiat amount when payments are processed.

In July 2020, the global blockchain platform and the company behind the Binance.com exchange announced the completion of its acquisition of Swipe. Discussing the deal Changpeng Zhao, CEO of Binance stated, “To achieve our mission of making crypto more accessible to the masses, off-ramps are a key component as well. By giving users the ability to convert and spend crypto directly, and have merchants still seamlessly accept fiat, this will make the crypto experience much better for everyone,” he continued. “Swipe’s exceptional team has made great strides in furthering this mission and has been instrumental in the industry for bridging the gap between commerce and crypto. The Swipe Wallet alone is unique which acts as a digital bank account for its users, providing access to traditional banking services.”

As per the recent announcement, the Swipe network plans to launch a decentralized finance application on Binance Chain called SwipeFi. The app will enable Binance Chain tokens to be deposited as collateral and earn interest, and also users borrow against their collateral. It is suggested that Swipefi will be. “Bringing a complete lending/earn protocol using the battle-tested open-source protocols, such as Compound, to Binance chain.”

Binance Chain was launched in February 2020 and was built by the Binance platform to “ensure the creation of a blockchain that will serve as an alternative marketplace for issuing, using, and exchanging digital assets in a decentralized manner.” The consensus algorithm for the chain is called Proof of Staked Authority. The network uses a set of 21 active validators who take turns in producing blocks. The validators are voted in by BNB stakeholders are required to lock in tokens to express their preferences.

The Swipefi protocol will also utilize a Binance Chain BEP2 token for governance rights called the Swipe Governance Token (SGV). SGV will be used on the protocol to vote on proposals and governance decisions. It can also be earned through liquidity mining.

Liquidity mining is when a token issuer or exchange rewards a pool of market makers with a native token to incentivize them to provide liquidity for a specified token. The model is designed to incentivize suppliers and borrowers within protocols like Swipefi to participate in governance as well.

There will be a total supply of 10,000,000 SGV. On August 17, 2020, there will be a snapshot of SXP balances and 1 SGV will be distributed to per 100 SXP in the network. This will give an initial supply of approximately 2,999,700 with the remaining 70% of to be allocated a liquidity Mining to incentivize supplying and borrowing on the protocol over a 5 year period. Swipe has stated they will release the SwipeFi white paper and governance details by August 10, 2020, with plans to launch a testnet in September.


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