Switcheo: An under the radar DEX

Introduction

Switcheo won our second Twitter pool related to decentralised exchanges. Here is our review of the NEO based decentralised exchange.

Switcheo is a non custodial cross chain enabled DEX. You can trade ETH and ERC20 tokens, NEO assets, wrapped Bitcoin and EOS.

What is Switcheo?

Switcheo Exchange offers a trustless and cross chain trading experience with instant trade confirmations, which means, it is not required to wait for transactions to be mined.

The DEX has non custodial wallets, an off chain matching engine and rely on smart contracts to connect traders. A key advantage of using Switcheo Exchange is that their matching engine is off chain, meaning that trading orders are processed and confirmed instanteanously like any centralised exchanges. There is no need to wait for block confirmation.

To login, Switcheo has also integrated a lot of popular wallets such ad Ledger or Metamask. Note that you can still use a more traditional email login to connect to the exchange.

Trading experience is on par with any centralised exchange; full order book, last transactions, chart, limit and market orders available.

Tokenomics of SWTH

Switcheo token (SWTH) is a NEP-5 token based on NEO blockchain.

Total supply is fixed at 1,000,000,000 SWTH. Circulating supply is currently 522M.

Switcheo market cap is tiny at $1.7M USD. Fully diluted market cap is $3.4M based on a SWTH token price of $0.0034.

According to their whitepaper, 20% of the total has been sold to the public, 48.3% is for strategic partners, 25% is reserved for the Switcheo team and 6.7% is allocated for marketing campaigns.

SWTH token derives its utility from the Switcheo Exchange where it is used to pay fees and is then burnt based on the amount of fees collected.

The higher the trading volume on Switcheo Exchange, the more SWTH will be burnt.

For Q1 2020, 318,995 SWTH have been used to pay fees and an additional 646,398 SWTH has been converted from ETH fees and burnt.

What we like

  • Cross chain DEX: Ability to trade ETH and ERC20, NEO assets and EOS. It is an open door to the big Ethereum DeFi ecosystem for non ETH holders.

  • Trading interface: we find it user friendly and on par with any centralised exchanges. The mobile website to trade is also good looking (not tested though).

  • Non custodial wallets: you are always in control of your money. Metamask, Ledger and Trezor wallets are supported.

  • No KYC required.

  • Active community supporting the project.

What we don’t like

  • No native Bitcoin trading; only wrapped BTC is currently supported. We would love to see a native bitcoin pair going forward.

  • No dashboard: It would be nice to see a dashboard with statistics about trading volume, fees collected, etc.

  • Low liquidity on smaller projects listed. Switcheo needs to implement incentives to drive liquidity on the exchange.

Investment Analysis

The investment analysis of the SWTH token is available for our subscribers, here. We provide an in depth research and valuation of the token.

Conclusion

Switcheo is a pretty good cross chain DEX, with ETH/ERC20, NEO and EOS supported. We do like the user friendly trading interface and the non custodial wallets.

On one hand, Switcheo is a bridge for the NEO ecosystem to communicate with Ethereum. On the other hand, it is an open door to bring DeFi to NEO assets.

We do expect to see Switcheo to continue its path to growth going forward.

Thanks for reading

Secret Salsa

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