Swapy is building a decentralized protocol with a suite of three integrated applications aiming to provide Universal Access to Credit. These applications are: The Swapy Exchange, which aims to connect smart money to emerging economies. It will introduce international investors from countries where the interest rates are comparatively low to credit companies in countries where the interest rates are comparatively high, providing better returns to the investors and lower cost capital for the credit companies; Swapy Financial ID, which aims to empower people, giving them a financial identity that has the purpose to be valid anywhere in the world; Swapy Data Market, which aims to transform users’ financial data into self-determined value through a token-based system. This suite of decentralized applications will allow the individuals to hold their own data and to choose how many tokens they receive in exchange for it, and when, and with whom they want to share. The Swapy Data Market also aims to reduce the entrance barriers for new participants since huge pools of data will no longer be exclusive to large corporations, and instead will present an opportunity for the new entrants. The Swapy Company envision a world of efficient credit markets, with no barriers to entry for new players, where consumers have the power and reap the benefits of Universal Access to Credit. We propose that the potential and need for Swapy Network is motivated by the convergence of several extant factors. These include the global pervasiveness of under-served populations where credit is concerned, interest rate disparities between countries, asymmetries in data access and ownership, data integrity, costs of servicing credit demand, and preferred modalities for conducting transactions. We consider these factors in reference to several world economies, with particular focus on Brazil, a G20 and BRICS country with one of the highest interest rates in the world. According to the Global Findex report , two billion people around the world do not have access to financial services, and especially access to credit. Existing banking infrastructure is expensive and consequentially, banking conglomerates typically make their services unavailable to the poorest populations or those living in remote areas. This is a particular problem in emerging economies. The problem of access to credit can be reduced to three factors: (1) the high cost of capital; (2) information asymmetry; (3) the high cost of banking infrastructure. When compared to developed countries, under-developed countries have a lower credit offering ratio and a higher interest rate spread, making credit more expensive and savings less remu- nerative. This is particularly a problem in Latin America and the Caribbean. A combination of the banking sector’s market power, systemic inefficiencies, default risks, lack of liquidity, ex- change rate volatility, complexity of banking operations, and tax regulation contributes to an unfavorable scenario for consumers who ultimately experience high implicit and explicit fees.
Swapy has a focus on decentralized lending and financial data. Credit providers in emerging nations (high interest rates) can raise money at a lower cost from developed nations (low interest rates) with no intermediaries. The project is proposing a second layer on top of Ethereum using PoS for decentralized data storage and data processing to provide data and insights with no intermediaries and following high standards of privacy. The data market incentivize people for sharing their data autonomously, with no intermediaries. This data marketplace is powered by a self-sovereign identity, and rewards in SWAPY can be used as collateral for loans, reducing the interest rates. With a powerful model, Swapy aims to create the opportunity for the unbanked. Swapy Exchange Alpha (v.0.0.3) web & desktop DApp has been already released! A project endorsed by Tim Draper, Don Tapscott and Singularity University Ventures!
On July 31st, we released our Swapy Exchange private alpha as an preview containing the fund raising contracts. The Swapy’s software development has started since July 1st, 2017.
On October 10th, we released Swapy Exchange public alpha on Ropsten test net, and open-sourced our protocol. Since then we are developing side features for the fund raising flow, auditing our code base and removing the dependency of a centralized login service. By mid-december, we will be releasing an updated version of the Swapy Exchange D’App.
Q1 Starting after TGE
Swapy Financial ID public alpha on test net providing identification and attestation to Swapy Exchange tokenized assets. Swapy Data Market private alpha on test net operating 1 to 1 data sales.
Q2 Starting after TGE
Swapy Exchange and Swapy Financial ID private beta on main net transacting real tokens. Each credit company we are negotiating with will have their own timeline to start using the Swapy Exchange depending on the compliance process.
Q3 Starting after TGE
Swapy Exchange and Swapy Financial ID public beta on main net. Public “Connect with Swapy ID” API available. Anyone can use for any purpose and transact real tokens. Swapy Data Market on private beta transacting real tokens and real data from Swapy Financial ID.
Q4 Starting after TGE
Swapy Data Market public beta on main net. Swapy Exchange and Swapy Financial ID improvements. Planning the following year considering the community surveys.