What is Swarm?
Swarm is a blockchain platform that brings unique tokenization and trading solutions to the world of traditional finance. Day to day, we work with real-world-asset owners to tokenize collateral and build trading infrastructure in a regulatory compliant way.
Swarm is the first organization in the world to offer tokenized US Treasury bills and public stocks that are tradable on a regulated and decentralized platform.
Who is Swarm for?
Our platform opens up new opportunities for retail investors and institutional market participants, such as banks, hedge funds, broker-dealers, asset managers and alternative investment industries, such as real estate, tech secondaries, carbon and music, as well as retail investors.
Those already on-chain, from stablecoin issuers to treasury managers can also use our platform to deploy into less risky assets.
Any individual or organization who wishes to onboard to Swarm must meet our Know Your Customer (KYC) and Anti-Money Laundering (AML) standards
What makes Swarm different?
We can integrate blockchain with financial markets because we are regulated.
Our hybrid model combines the advantages of blockchain-trading with the trust and asset-range typically enjoyed by traditional exchanges.
All investment carries risk. Swarm offers investment opportunities in traditional asset classes that benefit from deep liquidity and robust price discovery. In a high interest environment, the short term US t-bills that are available on Swarm can yield up to 4.5%, which is variable.
Traders pay fees to liquidity providers for swapping assets. The pool creators set their own swap fee. 25% of the pool's swap fees or 0.1% of the assets being swapped, whichever is larger, will be made claimable to Swarm.
Do I need crypto to buy tokenized securities on Swarm?
Users will need to purchase security tokens using USDC on Polygon. Once pools are created by users, any asset listed on Swarm can be swapped for security tokens.
Can I buy these tokens with fiat?
Not yet, Swarm may release this functionality in subsequent releases.
Redemptions will be processed once requests reach a value of $100k in aggregate. This policy will be reviewed, as volume grows on the platform.
Once the redemption request has settled, USDC will be distributed. Alternatively, users can place an offer against any listed asset on Swarm, using the decentralized over-the-counter (dOTC) smart contract, which can be taken by any user on the platform.
The tokens are 100% backed by real stocks and bond ETFs bought in traditional financial markets. Underlying assets are held by institutional custodians and verified by the token trustee.
The tokenization process is monitored step-by-step by a Token-Trustee, which involves tracking the delivery of the respective underlying into the custody account. Subsequently, the Token-Trustee confirms the minting and issuance of corresponding tokens.
Tokens can be redeemed for the value of the underlying asset at any time and monthly disclosures of assets in reserve will be made publicly available. Swarm is working towards a real-time asset verification model.
Can the real underlying assets be registered in my name?
Presently we don't have a license to transfer real underlying stocks directly to token holders. The current redemption process transfers you the value of the stocks at the time of redemption, in USDC.
What are the risks of DeFi?
While decentralized finance and AMMs have been somewhat battle tested, they are very new protocol technologies. Swarm is introducing new layers that could introduce both additional risk and de-risk in certain use cases. We are taking every precaution and doing extensive audits.
What is an AMM?
An AMM, or Automated Market Maker, is a general term that defines an algorithm for creating and managing liquidity. Learn More
What is the difference between Swarm and other AMMs?
Automated Market Maker (AMM)-based decentralized exchanges (DEX) have proven to be one of the most impactful DeFi innovations. While existing AMMs have created an exciting and thriving protocol layer, their activity is typically performed outside of financial market compliance. Swarm has created a regulatory layer on top of open DeFi protocols, starting with a multi-asset AMM solution pioneered by the Balancer protocol
Is Swarm decentralized?
Swarm makes every effort to be as trustless as possible. The core AMM protocol is built on open and battle-tested code. To remain regulatory compliant, Swarm is mandated to qualify market participants and assets allowed into the protocol.
Under which regulation is Swarm operating?
In terms of regulatory licensing requirements, Swarm Capital GmbH operates under the exemption according to section 64y of the German Banking Act (Kreditwesengesetz – “KWG) and is regulated by the German Federal Financial Supervisory Authority (BaFin). Learn More
Transacting on Swarm is currently not available for US persons (as defined here) or persons that hold identities from other countries not serviced. US persons and users from non-serviced countries may connect a wallet and view their assets, but will not be able to set up a trading account.
Swarm is currently available to users resident in Argentina, Armenia, Australia, Austria, Azerbaijan, Belgium, Bermuda, Brazil, Bulgaria, Canada (crypto only), Cayman, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Eswatini (formerly Swaziland), Finland, France, Germany, Gibraltar, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Macau, Macedonia, Malaysia, Malta, Mauritius, Mexico, Monaco, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates (UAE), United Kingdom (UK), Uruguay, und Vietnam.
What is Swarm useful for?
Firstly, to serve any market participants who value the core benefits of DeFi (self-custody, transparency, participation), but want to remain compliance confident and keep their digital assets future-proof
Secondly, on the basis of Swarm's regulatory compliant protocol layer, entirely new financial products can be launched and offered, extending DeFi pretty much to any financial asset and to integrate with financial institutions.
I do not have crypto. Where do I start?
To use Swarm you will need to have at least one of the supported assets in your connected wallet. A good place to start is with USDC, Ethereum (ETH) or Dai Stablecoin (DAI).
Why is the platform not working?
We recommend disabling enhanced tracking protections (including any adblockers) for our web app only so that other tracking protection is unaffected for other internet browsing. No cross-site tracking, cryptominers, or any hidden software are implemented on the platform web app.
Why might my swap be expected to fail?
If you receive a general error message that your swap is expected to fail, it may be due to:
- Authorization not yet set: If you just completed Quickstart onboarding, please allow the protocol a minute or two to authorize your address on the blockchain. You will receive an email as soon as this is complete.
- Trading Limit: If you haven't fully completed setting up your Passport, your account trading limit is set to a total of 5,000 EUR. All transactions on the platform (swaps, adding and removing liquidity) count towards your limit. Check your passport for instructions on how to remove this limit.
- Low liquidity: One of the pools required to fulfil your swap has insufficient liquidity to complete your order.
- High Slippage: Low liquidity can also result in high slippage, meaning that the actual price may be significantly unfavorable compared with the expected price. Try increasing your acceptable slippage level in advanced settings. Note that this could result in an unfavorable swap price.
What are proxy contracts and atomic transactions?
Swarm uses proxy contracts to save you gas fees when transacting. Creating your proxy address adds a little gas to your first transaction but results in lower fees and a better user experience over time.
When making your first transaction via the platform, the Swarm protocol checks whether you have previously deployed a proxy contract. If you have not, the platform creates one for you, bundling this into your first transaction.
Your proxy contract is a Gnosis Safe and can be used with any Gnosis Safe Application. Proxy contracts allow complex multi-step transactions to be batched into a single, atomic one, requiring only a single verification. An atomic transaction will revert if any part of the transaction is expected to fail so you won’t be charged any gas fees for a failed transaction. This saves you money over time and improves the user experience by making transactions much simpler.
Proxy contracts also hold your wrapped assets and pool tokens, saving you the gas fees that would otherwise be charged by transferring these assets to your primary wallet address.
Note: your proxy contract is created, owned, and controlled by your connected primary wallet address. No other address can instruct your proxy in any way.
Why is there a balance in my proxy address?
Some platform transactions can result in a small percentage of your assets remaining in your proxy address. This occurs when there is a difference between the estimated amount of asset being transacted and the actual amount used when the transaction is mined.
How do I use or claim the balance in my proxy address?
When swapping or interacting with liquidity pools, the platform will automatically use any relevant balances from your proxy address before withdrawing funds from your user address. Therefore, the simplest way to minimize the balance in your proxy address is by transacting. You will always have the option to simply claim your entire proxy balance through your platform Wallet at any time. In the meantime, balances in the proxy wallet count towards rewards calculations.
Does Swarm have a product roadmap?