The financial crisis of 2008 was years in the making. Large financial institutions had been playing loose with cheap credit and bad loans and a reckoning was long overdue. These entities had privatized profits, but socialized the losses. Meaning company profits were recognized as shareholder property but the losses were the tax payers burden thanks to their deep pockets and political influence. This relationship has deep roots, both being tied to the central bank and having a monopoly on the entire monetary system.
Motivated by those events, Satoshi Nakamoto created Bitcoin. For the first time ever, a monetary system was put forward that had no central authority or anyone with the capability to print infinite assets. Instead, the structure would be autonomous, peer to peer and completely public with every transaction that happens on the blockchain being written to a ledger.
Oddly enough, most cryptocurrencies ended up being traded on centralized exchanges which goes against its very philosophy of being decentralized.
Crypto’s basic principal is to be truly decentralized. No single authority behind it and even the blockchain ledger which tracks all transactions are immutable. This means that it cannot be altered, or erased. Centralization is not required and any change made to this database is distributed (copied) and shared among the peers. This is the amazing part of blockchain technology because it allows for a consensus — meaning that everyone must be made aware and approve any changes that are made. This is a big difference from centralization where a single authority manages all changes.
This year the pure amount of scandals and/or fraud that has rocked the crypto markets is mind numbing. The Luna / Terra crash was responsible for the loss of billions in value that simply disappeared. Celsius and Three Arrows crashed soon after. The Ronin network was compromised then hacked, and now we are in the middle of the FTX / Alameda Research meltdown. These all have a huge ripple effect on the market as a whole. Fear and distrust in the centralized sector is growing. The volume of funds being withdrawn across Centralized exchange platforms are forcing investors big and small to take huge losses in their portfolios.
It’s important to note that all of these losses have been on Centralized exchanges. The DeFi mantra of “Not your keys, not your money” is surely ringing in the minds of all investors.
Centralized exchanges have seen over 6 Billion in assets removed from their platforms in the past two weeks, proving that user confidence has taken a very serious hit. At the same time, DeFi protocols are surging — seeing double digit increases in percentage of users on major protocols. Uniswap, the on chain aggregator for ethereum had the second largest volume of all crypto exchanges this week trading over 1.1 billion.
The silver lining in everything that has happened in 2022 is that perhaps now people are starting to see DeFi the way Satoshi had envisioned crypto to be 14 years ago — and that self-custody wallets are the only safe way to store your assets. Trusting in Centralized exchanges, when they hold your keys while not having your best interests in mind is misplaced. For them, it’s about keeping power and control of your funds.
With the focus now tilting more towards DeFi protocols, many users will be looking for the right platforms that will be able to provide all the tools necessary to effectively trade in this environment. At the center of any market, an exchange that allows for interoperability between the many blockchains is essential. Users want to be able to swap safely, quickly and efficiently to capitalize on a fast paced market where minutes or even seconds can make all the difference to their portfolio.
There are many projects out there claiming that they can provide cross-chain services. However, it’s important to recognize the value of cross-chain value transfers which help prevent single points of failure and risk of centralization. Furthermore, the vast majority are only bridging stable coins or bridging to wrapped (synthetic) tokens which represent the original token on layer1.
Most of these wrapped asset bridges are centralized. The real question should be: who has authorization to mint these synthetics on remote-chains which are representing the value of the locked layer1 asset? What happens if that gets compromised? In that case, an attacker could mint as many synthetics as he wants and then steal all the liquidity on layer1. We saw this happen with many bridges in the past year.
FibSWAP DEx has smashed the perception that bridging to wrapped tokens is the only solution. In 2021, FibSWAP created the world’s first Interoperable Multi-Chain Bridge System (IMBS) using a smart algorithm that allows cross-chain swaps of any token to be routed through public pools of decentralized exchanges.
As a user, you want the least price impact on a trade as well as the best possible price on the asset. Users are routed through the best liquidity pools available on the local chain (source chain) as well as on the remote chain (destination chain). They are just interacting with smart contracts which are interoperable with each other to achieve value transfers between chains. For bridging value between chains, mostly USDC is being used. The amazing thing about USDC is that it exists natively on many chains.
Deep liquidity is achieved by using public pools from DEx’s like Uniswap and Quickswap while fees are made up from a combination of liquidity fees on public pools, cross-chain pools and relayer costs. Auto Slippage has been set on cross-chain transactions to mitigate the risks associated with MEV (Maximal Extractable Value) which is sometimes referred to as the “invisible tax” that miners can collect from users.
Investors only need to execute the smart contract on the local chain and for ease of use, FibSWAP uses a relayer that allows remote-chain gas fees to be paid upfront in local-chain gas. This simplifies the process and creates a great customer experience.
With the release of the DEx version 2.0 earlier this year, FibSWAP simplified the process even more, and now users are only required to click once and sign their wallet for the swap to be initiated. From the moment of execution, cross-chain swaps typically take under 10 seconds for the native destination tokens to appear in the user’s wallet (depending on blockchain traffic).
During the entire process, there’s no 3rd party who has control over the funds. The user is just executing the local-chain smart contract which swaps tokens to a bridgeable asset and that gets “locked” in the local-chain smart contract. After that, the user receives his desired native tokens from the remote-chain.
FibSWAP DEx is available on the web, as well as on IOS and Android as a mobile wallet and DEx app.
FibSWAP doesn’t stop with simply swapping tokens cross-chain. Recognizing a need in early 2022 for NFT’s to be purchased with tokens from other chains they created FibPal — A cross-chain NFT payment system (white-label) that can be integrated into any NFT marketplace’s checkout system.
The NFT market had grown to amazing levels prior this bear market and it’s widely believed that in the future NFT’s will be much more than fuzzy jpeg pictures. Plane and concert tickets, even the title to your car or home can one day become an NFT. Bringing cross-chain interoperability to this sector is crucial. Today, thanks to FibPal, an NFT collector can purchase a Polygon based NFT for example with any token on Binance Smart Chain if they desire.
Cryptocurrencies and assets deserve to, and should have a way to easily trade with one another. FibSWAP aims to identify the pain points that investors face and resolve them. This is the only way to encourage mass adoption into the DeFi space.
In that spirit, FibSWAP is now developing an entire ecosystem between their flagship DEx, FibPal, Mobile applications, their own cross-chain compatible NFT marketplace, new charting tools for crypto investors as well as FibSWAP.tech — a resource center for news, forums and crypto / blockchain education.
FibSWAP recently migrated their company and it’s token to the Polygon blockchain and lowered the total supply of their $FIBO token to 100 million. Thanks to the excellent performance of the chain and the current trends being seen among the NFT and gaming industry with Polygon, the choice was simple. They are also rolling out a DAO and thanks to a recent collaboration with Chainlink, will be introducing a new staking protocol next week for their $FIBO token.
FibSWAP has brought to the market a well designed, user friendly ecosystem that makes researching and investing fast, safe and easy for even the most novice trader. The company, unlike most others in crypto offers 24 hour tech support in a dedicated Telegram channel.
Encouraging painless mass adoption into the DeFi space from both CeFi and new users is essential. The serious push to get crypto users to take self-custody of their assets starts now. If the industry wants to overcome the recent CeFi problems it will look to companies like FibSWAP that are providing real utility and ease of use.