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Swarm Markets launches fully-regulated DEX exchange on Ethereum

01 Jul 2021 : 14:42
2 min read
  • Swarm Markets, which claims to be the first regulated DEX, is open for business
  • The DEX falls under the supervision of BaFin, the German regulator
  • Swarm Markets aims to lower the barrier to adoption of DeFi by retail investors

Swarm Markets, which claims to be the world’s first regulated decentralized trading exchange (DEX), opened its services today, announcing its launch in a press release.

Swarm Markets is to go live with $15 million in pledged liquidity and will fall under the supervision of BaFin, the German regulator. The platform plans to integrate new assets to allow tokenised securities to be traded on a regulated platform alongside crypto assets. The decentralised exchange is powered by the Balancer protocol and will launch on the Ethereum network.

The platform will use smart contracts that will make it possible for more trading pairs to be used. This will allow investors to test out a wide set of trading strategies while maintaining full oversight of their collateral. Another plan of the DEX is to offer its own payment token and give early adopters of the platform 50% trading fee rebates and other rewards.

Swarm Markets aims to lower the barrier to the usage of DeFi

According to Swan Markets, one of the biggest barriers to cryptocurrency adoption is regulation. Swan Markets hopes to lower this barrier for its customers by offering its services with AML and KYC protocols, similar to regulated platforms. This will allow its clients to be verified and eliminate counterparty risk while remaining private.

User information and onboarding will be managed through a service called Passport, which contains a user’s personal information, verifications, trading allowances and connected addresses. To set up a Passport on the DEX, you must connect a wallet, verify an Ethereum address, and verify your identity.

The co-founder of Swarm Markets, Philipp Pieper, said, “We’ve seen the total value locked in DeFi grow exponentially since the DeFi summer of 2020. People are looking for ways to make their collateral work for them, but need to operate in a trusted and secure environment that suits their compliance needs. That’s where Swarm Markets comes in.”

About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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