This week, the World Economic Forum (WEF) published a report that presented a framework for how nations and states might seek to regulate the DeFi market. The framework seeks to promote fair, efficient, enforceable regulations for the emerging digital asset market. Although there is much resistance in the crypto-sphere towards regulation, a report like this legitimizes DeFi in the eyes of institutional investors.
The report specifically highlights the importance of decentralized exchanges (DEX) when it comes to engaging in DeFi and CoinSwap Space are in the perfect position to take advantage of this paradigm shift.
Decentralization At The Forefront
One particularly noteworthy conclusion of the report is its appreciation of the importance that decentralization plays in the new financial paradigm. Sheila Warren, the deputy head of the WEF Centre for the Fourth Industrial Revolution (the centre that deals with the economy of the digital revolution) was a key figure in composing the report.
She felt the WEF had a commitment to drawing up a set of regulations that did not unfairly impact DeFi firms relative to traditional finance firms. She stressed the importance that decentralization not prove disadvantageous saying:
“Part of the promise of DeFi is a more democratized path to engaging with financial services, whether lending, insurance, or other.”
The report is significant because it demonstrates an institution rooted in traditional finance (the WEF) waking up to the revolutionary power of decentralization. It also demonstrates that institutions are looking beyond crypto as simply an investment and are examining the idea of doing business in a decentralized way.
This indicates the huge show of faith in DEXes. Indeed, the report concludes that a DEX represents a better means to engage in DeFi than a CEX. Given the increased access a DEX gives you to your private key it’s no wonder. According to the report:
“Unlike centralized exchanges…(DEX) protocols are DeFi services because they do not take custody of user funds and may not control other aspects of the process such as order book management and matching.”
CoinSwap Space Fitting The Bill
CoinSwap Space, a new decentralized exchange on the Binance Smart Chain, is perfectly poised to provide solutions for the new institutional investors that this report will bring into DeFi. By utilizing BSC, CoinSwap is able to offer lower fees than any other major DEX (including PancakeSwap). In addition to that, CoinSwap’s native CSS utility token has a hard-cap, making it a very attractive long term investment.
At the moment, one of the biggest problems associated with a DEX is the complexities associated with operating one. This is particularly an issue for new entrants, such as the ones brought into DeFi by the WEF report.
However, CoinSwap has built itself on a user-friendly UI by providing many features that make the DeFi experience completely intuitive. The DEX features a seamless connection that automatically imports BSC into Metamask when the wallet is connected to CoinSwap.
There is also a “Mass Harvest” option for all tokens earned on the DEX. This allows users to easily bank all their returns. Alternatively, users can avail of the “Mass stake” option to effectively compound all of their earned tokens and start earning interest on them.
These options simplify some of the most tedious and repetitive tasks associated with liquidity pools and staking. They also reduce the amount of transactions needed to complete these tasks which, of course, reduces fees. Mass Stake and Mass Harvest allows users to save approximately 50% on CoinSwap’s already minimal fees.
In addition to this, CoinSwap has the ambition to become a cross-chain DEX, further simplifying the process of engaging in DeFi. Users will no longer need to familiarize themselves with multiple DEXes to benefit from all the features of DeFi.
Currently, CoinSwap is focused on building their own backend to deal with data processing, constant improvement of UI and adding new trading tools. All of these new features will be implemented with a strict commitment to the DApp remaining decentralized. As these features get added CoinSwap will also be preparing to add more chains to the DEX.
CoinSwap are also cementing partnerships with projects that provide further data for them. Bitquery, The Graph, DeFiStation, and Unmarshall will all be integrated into the CoinSwap DEX. These integrations will give CoinSwap access to market analytics and analysis of money flow, DEX trading and DeFi trading. They will also provide scientific research of blockchain development.
These collaborations will allow CoinSwap to develop an even more user-friendly experience and bring them a step closer to being listed on aggregators like CoinGecko, CoinMarketCap and BSCScan. These aggregators can now easily access information such as volume traded and total value locked on the CoinSwap DEX.
DEXes Paving The Path To The Future
There are many future challenges for the DEX model, especially with the publishing of the WEF report. DEXes must meet the expectations of new, inexperienced users, remain decentralized while doing it, and now, meet the requirements of regulators. The biggest challenge is doing all of these things at the same time.
By analysing UX and observing the operation of regulators, CoinSwap Space is aiming to do just that. The project is laying out a roadmap that shows the DEX has the ambition to be one of the major players in the financial world envisaged by the World Economic Forum.