Launchpool announces upcoming AME for Swarm Markets — The World’s First Regulatory Compliant AMM DEX and Securities Issuance Platform!
Swarm Markets is the world’s first licensed Decentralised Finance (DeFi) exchange for securities and crypto. Swarm Market’s unique position as a licensed exchange makes it the only DeFi platform accepting liquidity from institutional investors like hedge funds, banks, and family offices while at the same time leveraging the volume from retail investors.
Swarm Markets holds banking licenses from Germany’s Financial Supervisory Authority (BaFin) to operate an exchange where both cryptocurrencies (e.g. Bitcoin, Ether, DAI) as well as regulated financial instruments, like stocks (e.g. Tesla, Apple) or commodities (e.g. gold) can be traded together in one unified marketplace.
The SMT Token is a payment token which facilitates more efficient transactions on the Swarm Market platform. SMT holders get paid loyalty rewards just for holding SMT tokens in a wallet connected to the platform and save 50% on protocol fees for all swaps. SMT can trade freely on any exchange without restriction, though onboarding is required to use the Swarm Markets platform.
Swarm Markets Combines the Best of Defi Innovation With Regulatory Compliant Infrastructure.
Swarm Markets is the newest entry in Swarm’s protocol suite, and it has been designed in response to the runaway success of Automated Market Making (AMM) based decentralised exchanges such as Uniswap, Balancer, and Sushiswap. These platforms are a major step forward for the crypto industry and have grown with such rapidity that they now rival all but the largest of traditional crypto exchanges. The growth of AMM exchanges has also led to the IDO (Initial DEX Offering) phenomenon, where assets are issued directly through such platforms.
While AMMs offer many advantages to both traders (self custody of assets) and issuers of assets (various incentivised liquidity models), they also have one significant drawback — lack of regulatory oversight. This particular shortcoming is a major barrier that prevents many institutions and savvy forward-thinking investors from participating in IDOs and trading on AMMs. Their investment mandate or investing philosophy simply does not allow it. Swarm Markets combines the best of both worlds by combining DeFi features with Swarm’s technology to create the world’s first regulatory-compliant liquidity protocol!
Through the Swarm Markets platform, asset issuers can manage both the initial sale and issuance of their digital securities and also establish customised liquidity pools and incentivised liquidity models — all with the confidence that they are compliant with legal regulations every step of the way! For asset purchasers and traders, they can trade or participate in sales with the confidence that their activity is “future-proofed”, and will not come back to bite them later in case of new regulations.
Swarm is Building a Compliant DeFi Ecosystem
Swarm Markets leverages its compliant platform to open the floodgates to trillions of dollars worth of capital from the traditional finance market by making more asset classes available to trade. Where existing DeFi protocols allow anyone to create a pools for crypto asset pairs, Swarm Markets adds the capability to create pools for myriad regulated assets like commodities (e.g. Gold), stocks (e.g. Tesla and Apple), and derivatives (e.g. carbon offset futures) to pair with crypto assets. By including more trading pair possibilities and bringing more asset-backed instruments to the crypto market, it’s easier to develop a market for new tokens because a higher volume of diversified liquidity is in the system.
Meet the Swarm Market Token — the Fuel that Hypercharges the Swarm Market Engine!
Distribution of the Swarm Market Token (SMT) will initiate with the launch of the platform and will continue over a 100-year schedule, with an annual 25% decrease in issuance. The token will offer users a 50% reduction in protocol fees on swaps when the fees are paid in SMT. SMT holders on the Swarm Markets platform receive automatic weekly rewards payments when they hold a ratio of at least 10% of their connected wallet’s assets in SMT. SMT is also paid to liquidity providers and top traders as part of Swarm Markets’ reward programs.
Advantages of Swarm Markets
Swarm Markets platform is an offshoot of Swarm Markets GmbH and Swarm Capital — who have been offering services for the issuance of regulatory compliant digital securities since 2019. Swarm Market’s founders Timo Lehes and Philipp Pieper took some of the first steps to address problems in crypto regarding the issuance of securities by founding Swarm Networks in 2017 and bring a depth of experience to Swarm Markets that just can’t be matched!
Swarm Markets aims to be the one-stop-shop where asset holders can onramp assets into the protocol and create financial products that come with an embedded compliance wrapper just by virtue of being issued under Swarm Markets’ license. Their unique position as a licensed platform gives them wide latitude to develop new financial products side-by-side with institutions who are eager to finally take part in pushing forward the future of finance.
The platform operates under a broad set of licenses which open the platform to more participants than other exchanges. Retail investors can invest with the same level of security as traditional banks and institutions can finally go all in on crypto markets because Swarm Markets offers a compliant platform for them to transact with known counterparties.
The combination of more types of assets and larger audiences acts as a magnet for liquidity, creates a stable market, and improves returns for platform users staking and trading with Swarm Markets.
Swarm Markets is a giant step towards creating a unified financial market that combines all the benefits of crypto innovation with the immense capital from traditional markets. The SMT token will be the fuel that underpins the liquidity of all the future digital assets to be issued on Swarm Markets!
About Swarm Markets
Swarm Markets is the world’s first licensed Decentralised Finance (DeFi) platform that combines the convenience and transparency of DeFi with the confidence of financial market compliance. Licensed in Germany and serving global users — retail and institutions alike.
Launchpool ($LPOOL) leverages communities, knowledge, expertise, contacts and capital to provide crypto projects with the best possible start to life, maximising their chances for success in this fast moving & dynamic space.