Welcome to the official MetalSwap‘s Medium page!
Here you’ll get community calls, news, deep-dive-ins, and alpha leaks such as next announcements, partnerships, backstages, developer’s insights and much more!
INTRO/OVERVIEW
Imagine a whole financial world without intermediaries, without bureaucratic slowness, without the struggle to ask permissions.
This is happening right now, it’s called DeFi, and we are excited to introduce our brand new infrastructure gear that is going to leverage and heal the entire market.
Nowadays, financial swaps are the most widely used “insurance” tool for large exchanges of raw materials such as metals.
Everything is happening on centralized markets that require financial coverage, and bank credit facilities that aren’t always accessible to everybody, with poisoning bureaucratic laziness.
What are traditional commodity swaps?
Commodity swaps were introduced in the mid-1970s to allow producers and consumers to hedge price risk in certain markets.
It’s a contract between two parties that aims to set the price of a certain commodity.
Once a notional capital is established, buyer and seller agree to make periodic payments to each other.
The first party based on a fixed parameter, the second based on a variable parameter that reflects the price trend of the underlying commodity.
Indeed, the consumer typically pays the “fixed leg” of the swap to hedge against a potential price increase, while the producer pays the “variable leg” to hedge against any decrease.
Here we see an example of a commodity-for-interest swap. The commodity-producer will pay a rate based on the return of the commodity and receive a floating rate such as LIBOR. It can help the commodity-producer reduce the downside risk of a poor return based on the commodity market price.
Benefits: The first party has locked in the price of the commodity by using a swap, achieving a price hedge. Commodity swaps are effective hedging tools against variations in prices or against variation in spreads between the final product and raw material prices.
Traditional Swaps have been the main solution to a very basic problem: be profitable with businesses among volatility on asset prices, especially feedstocks.
Traditional Swap Issues
Current centralized systems are suffering from significant drawbacks:
- Structural Costs
Which are reflected in the commissions the trader pays to open financial hedge positions.
- Trust
Funds are entrusted to the centralized service that allows the opening of positions.
- Monopoly
Resulting in an imposition of costs dictated by a few players who set the price at their convenience.
- Need for bank coverage
This translates into the need for an additional level of trust.
It should not be forgotten the segment of population that PHYSICALLY does not have access to financial systems because of political restrictions, meaning underbanked and unbanked: a large part of the world population.
- Access to hedges allowed only in specific time intervals
An operator in Asia could be pushed to follow office working hours in time zones as distant as London or Chicago.
INTRODUCING METALSWAP
The Evolved, Decentralized Swaps solution
Through a set of smart contracts, initially deployed on Ethereum’s mainchain, we are going to make it possible to execute swaps without the need for intermediaries, at reduced costs and without time restrictions.
From a traditional-based financial feature, to a new digital LEGO-Money brick!
MISSION / VISION
We aim to be a strategic key feature in the DeFi AMM space, decentralizing Financial Swaps on both crypto pairs and metal synthetic assets.
- How does it work?
We enable hedge swap transactions through the use of Smart Contracts, AMM style
It’s easy:
1) open the WebApp.
2) Choose the economic result you want to achieve.
3) Do everything in complete autonomy.
Check it out!
This is our first-ever interface version, the prototype used for the Proof of Concept, running on Kovan Testnet!
Everybody can choose to be a Liquidity Provider, taking place in some of our liquidity pools, or simply buyn’ and holdin’ our XMT token!
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This token is not out yet, so please be aware from scams!
Every official news is provided only by this page and our official socials listed below.
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XMT use case
Governance
Staked XMT holders will be allowed to vote on new updates to improve and manage the MetalSwap ecosystem. Our DAO is being developed, so stay tuned: juicy news are coming!
Staking
Users can stake XMT and increase their holdings and voting power on next strategical choices!
Farming
Users will collect XMT token for the time their swap contracts stay open.
Users will be able to provide liquidity to the pools and farm XMT
2021 — Roadmap nearly achieved!
Next step 👉🏻 IDO!
Check-out our white paper, get a deep-dive inside our project, and feel free to ping the team giving your feedback and asking your questions.
Don’t wait a second more.
Follow our brand new socials to be always up-to date:
be part of our skyrocketing ride! IDO is near. *
This is surely going to be a wild ride on the tech side, get dirty in it with our Docs!
Decentralized financial markets are finally close to get a new, strategic tool.
This tool is going to be under a lot more interested eyes, in the near future!
From the traditional ground…
To the MetalSwap!
… and beyond!
* Want to get some alphas from the IDO? Don’t miss what’s coming right today on our socials!
Links
OFFICIAL WEBSITE 👉🏻 https://www.metalswap.finance/
TWITTER 👉🏻 https://twitter.com/MetalSwapNet
TELEGRAM 👉🏻 https://t.me/metalswap
TELEGRAM SUPPORT GROUPS 👇🏻👇🏻👇🏻
🇬🇧 https://t.me/joinchat/YaSNSVggeOFhODQ0
