What is TrustSwap?
TrustSwap is a DeFi platform that aims to solve the problem of trust and security in the crypto economy. One of the biggest challenges in the cryptoverse is the lack of trust between parties in transactions, as well as the risk of fraud and hacks that can result in significant financial losses.
TrustSwap protocol provides a suite of tools and services that enable secure and automated transactions, as well as decentralized and transparent fundraising for new crypto projects. By solving the problem of trust and security, TrustSwap helps to create a more robust and trustworthy crypto economy, which benefits both investors and projects alike.
Imagine a protocol that helps you make crypto payments, integrate subscription models, and launch your own token, all in one place. TrustSwap mainly derives its value from the user-friendly interface it provides for all these use cases. Gone are the days when users had to learn to code in order to launch their own token. Now they can mint tokens for free within minutes, swap assets in a trustless manner, and even set up their own timelock contracts.
TrustSwap also has its native token, called $SWAP. It is a governance and gas token that can be used for paying for services within the TrustSwap ecosystem. The price of $SWAP is tightly correlated with the number of operations taking place. For example, users can choose to pay for swaps using $SWAP at a discount fee – 0.3% fee vs 0.5% on centralized exchanges.
On the governance side, SWAP holders get to decide how the protocol funds get spent. Often this will be used to fund further developments that have been suggested, voted for, and approved by all governing stakers of SWAP. It is worth mentioning that TrustSwap doesn't explain in detail the governance process. We can only assume TrustSwap protocol will progressively get more decentralized over time.
While some of TrustSwap's services are entirely decentralized i.e. swaps, escrow mechanism, its Launchpad is requiring KYC for both the project members and the token sale participants. This is a legal requirement in order for TrustSwap to operate, and it offers token sale participants a guarantee that the listed projects aren't scams.
Because TrustSwap stores users' KYC, the onus is placed on them to ensure the protocol stays safe from hacks. As of 2023, TrustSwap hasn't been hacked, and their smart contracts have been audited by several cybersecurity companies. On the technical side, users can use the protocol's services without having to worry about security breaches.
How does TrustSwap work?
TrustSwap started from a simple escrow service, and have since expanded into a multitude of services for companies and users alike. TrustSwap ensures that both parties hold up the end of their bargain in the realm of crypto. As the crypto industry evolved, TrustSwap incorporated services such as token sale launchpads, wrapping-as-a-service, and two-party swap services.
TrustSwap Escrow
Escrow services are smart contracts that help facilitate secure and automated transactions between parties by holding the funds or assets in escrow until certain conditions are met. Their use case expand beyond the crypto world, as in the example below.
Let's say Alice wants to sell her car to Bob for 10 ETH. They agree to use an escrow smart contract to facilitate the transaction. The contract is written on a blockchain, which ensures that it is transparent, tamper-proof, and decentralized.
The contract includes the following conditions:
Alice sends 10 ETH to the contract's address, which is held in escrow until the transaction is completed.
Bob inspects the car and verifies that it is in good condition.
Bob sends a signal to the contract to confirm that he accepts the car and wants to release the funds from escrow to Alice.
The contract verifies that both parties have fulfilled their obligations, and automatically releases the funds to Alice.
Once the contract is deployed on the blockchain, Alice sends 10 ETH to the contract's address. The contract holds the funds in escrow until Bob has had a chance to inspect the car. If Bob finds that the car is not in good condition, he can reject the transaction and ask for a refund of the 10 ETH. If he accepts the car, he sends a signal to the contract to release the funds to Alice. The contract checks that both parties have fulfilled their obligations, and then automatically releases the funds to Alice.
The benefit of using an escrow smart contract is that it removes the need for a trusted third party to hold the funds or assets in escrow. The contract is programmed to execute automatically once the conditions have been met, which eliminates the risk of fraud or default by either party. This makes the transaction more secure, transparent, and efficient.
Practical examples of escrow services can be extended to automated payments, and subscription services. TrustSwap offers a simple interface for businesses and users to customize their own deals. Fees on the Swaps & Escrow service can be paid in ETH (0.3%) or SWAP (0.15%). The service is free if a user selects to send SWAP and receive ETH. Consequently, this is an additional incentive for SWAP stakers to incentivize its usage as a primary unit of exchange.
TrustSwap Mint
Have you wondered what it takes to create your own token? You'll be happy to learn that the process is much simpler thanks to TrustSwap's token generator. The underlying contracts are audited by default, which means freshly minted tokens via TrustSwap are safe from hacks – all they need is a use case.
TrustSwap does not charge any fees for the creation of new audited tokens. You only pay the Smart Contract gas fees for the actual generation of the tokens. These fees will not go to TrustSwap but to the respective miners or validators.
It's worth mentioning that TrustSwap's token generator lets users define the chain, Name, Symbol, Decimals, Total Supply, Transaction Fee, Mint Function, and Burn Function. Future releases will add additional token features, like deflationary, rebase and more.
As of 2023, TimeSwap Mint can help you create token vesting, liquidity locks, team token locks, and NFT locks.
SmartSwap
SmartSwap essentially is a P2P transacting mechanism. The service doesn't require KYC, and it's fully trustless.
The SmartSwap mechanism ensures that the transaction is atomic, meaning that it either executes in full or not at all. It also ensures that both parties receive what they agreed to and eliminates the need for a centralized exchange or middleman.
Let's say Alice wants to trade her 1400 USDT for Bob's 1 ETH. They both agree to use TrustSwap's SmartSwap mechanism to execute the trade.
Alice initiates the SmartSwap by entering the amount of USDT she wants to trade and the address of her USDT wallet. She also specifies the amount of ETH she wants to receive and the address of her ETH wallet.
The SmartSwap mechanism generates a unique hash for the transaction, which serves as a one-time-use secret key that only Alice knows.
Bob receives the details of the SmartSwap transaction and enters the amount of ETH he wants to trade, as well as the addresses of his ETH wallet and the USDT wallet that will receive the USDT. Bob also generates a secret key, which is combined with Alice's secret key to create a new hash that is used to unlock the smart contract.
The SmartSwap mechanism generates a smart contract that holds both the USDT and ETH in escrow until the swap is completed. Once both parties have entered their details and generated their secret keys, the SmartSwap mechanism sends them the respective hash keys. Alice uses the secret key to unlock the smart contract and release the USDT to Bob's wallet. Bob then uses his secret key to unlock the smart contract and release the ETH to Alice's wallet.
TrustSwap Launchpad
Combining all the services described above, TrustSwap has come up with a full suite of services to help crypto projects raise funds. The Launchpad is designed to provide a fair and transparent way for both investors and projects to participate in the crypto ecosystem.
Let's say a new crypto project called "MaxCoin" wants to launch its own token and raise funds via TrustSwap Launchpad.
MaxCoin applies to launch its token on TrustSwap's Launchpad, providing information about the project, its team, and its tokenomics. TrustSwap conducts due diligence on MaxCoin to ensure that it meets the Launchpad's requirements for listing. This includes a review of the project's code, whitepaper, and team members. Once approved, MaxCoin creates its token and sets the initial price for the token sale.
TrustSwap helps MaxCoin distribute the tokens to investors through a variety of channels, including staking, liquidity pools, and a public sale. Investors can participate in the token sale by purchasing MaxCoin tokens using various cryptos, such as ETH or USDT, through the Launchpad platform.
TrustSwap provides security measures to prevent fraud and protect investors' funds, such as smart contract auditing, KYC/AML verification, and multisig wallets. Once the token sale is complete, the funds raised are transferred to MaxCoin to help fund the development of its platform.
How to make money on TrustSwap?
TrustSwap is mainly aimed for projects looking to launch their token sale, or users making payments in a trustless manner over the internet. If you don't find yourself in any of these categories, but you are still looking to make money with TrustSwap, the main method is by participating in their token sales.
Dozens of projects choose to launch their token sale via TrustSwap. As an early participant, you get to buy the project's tokens right before they get listed and speculate on their token price. On average, projects listed on the launchpad make 20X in ATH, though timing is of the essence when engaging in speculation trade.
The main advantage of researching projects listed on TrustSwap's Launchpad is that a team of experts have already vetted the project – DYOR is still recommended. With all the information in one place, all you have to do is set your timer for when the token sale starts.
Token sales are usually a time race. Thousands of people across the globe are rushing to buy the tokens before the hard cap is reached. To solve the crowding problem, TrustSwap has come up with a mechanism that incentivizes long-term network participants and supporters.
In order to gain a larger share of the launchpad tokens, one must stake $SWAP into the Long-Term Staking Portal. Whether you have 10 $SWAP or 100,000 $SWAP, the Long-Term Staking Portal will allow you to instantly earn a higher APY and larger launchpad allocations.
Your Launchpad multiplier will be based on your longest stake. If you stake 100,000 SWAP (50x) for 5 years (10x), you will have a 500x multiple on your allocation. If you stake 8,000 SWAP (3x) for 5 years (10x), you will have a 30x multiple on your allocation
Therefore, staking $SWAP gives you more $SWAP tokens, and it also entitles you to buy a larger share of the tokens listed on the launchpad.
In order to stake your $SWAP tokens, follow these steps:
1. Open the TrustSwap app
2. Click on the "Long Term Staking" tab
3. Click on the "New Stake" tab
4. Input the number of $SWAP tokens you would like to stake and the lockup duration
5. Click "Stake Now"
6. Approve the transaction
7. Profit
Keep in mind that once staked, tokens will be locked for the duration without the possibility of unlocking them early. On the other hand, the longer your stake, the higher the allocation for Launchpad projects.
Price Prediction for TrustSwap — Can it hit $1000?
Buying and hodling SWAP — the native token of the TrustSwap — is one way of potentially making money on TrustSwap.
By looking at its current price, it’s natural to think about the chance of SWAP hitting $1000 per token. This can happen sooner, or way in the future, and is determined by a couple of ever changing factors.
Let’s examine the potential growth of the SWAP token by analyzing its tokenomics. SWAP’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} SWAP tokens being in circulation today, that means a price of {PRICE} per SWAP.
How did we come to that calculation? It’s quite easy, the price of a SWAP token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each SWAP coin.
By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of SWAP at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for SWAP to hit that price.
At a price of $1000 per token, that means the current market cap of SWAP would equal ${{CIRCULATING_SUPPLY} * 1000}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $1000.
Now let’s shift our attention to the fully diluted market cap.
Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.
The fully diluted market cap represents the total value of a coin if all tokens were in circulation. SWAP’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} SWAP which means that no more coins above that number will ever be created.
These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.
How does this impact the price of SWAP? Taking into account the current price of a SWAP token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. SWAP coins that have been burned are not taken into consideration because they have been permanently removed from circulation.
Whether it seems gigantic or not, the number we came to above only takes into account the current price of a SWAP token. Doing the same calculation but with a price of $1000 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 1000} for the SWAP protocol fully diluted market cap.
These are all crucial details to know when calculating if SWAP can reach the price of $1000 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.
The future of SWAP depends solely on its growth as a network used by tens and hundreds of millions of users.
If you’re looking to add some SWAP to your portfolio, the most trusted places to get some are Binance and Coinbase.
