What is SXP cryptocurrency?
SXP is a cryptocurrency built on the Ethereum blockchain as an ERC-20 token. It is used to pay fees for various products in the Swipe ecosystem. SXP is required to reach the more prestigious tiers of the Swipe debit card and can also be used to pay with the Swipe debit card.
Once the Swipe network is launched, SXP will be used to manage various protocols in its DeFi ecosystem and will be used for staking to enhance network security.
The total supply of SXP is 300 million. When SXP is used to pay fees in the Swipe ecosystem, 80% of the SXP used to pay those fees will be burned by the smart contract. This makes SXP a deflationary cryptocurrency.
However, it has a “deflation limit” of 100 million, at which point new tokens will only be created to provide rewards to certain participants in the ecosystem. One SXP token is required to gain access to various Swipe products, including DeFi protocols on the Swipe Network.
How does Swipe work?
The Swipe network uses Ethereum’s blockchain to hold cryptocurrency for users and provide users with various utilities.
However, the platform also runs an off-chain API that allows compatibility with the traditional payment infrastructure and thus allows users to use fiat merchant payments.
Highlights of Swipe
- Fast conversions: cryptocurrency conversions are done in real time and approved within seconds.
- The Swipe Visa Card works anywhere that accepts Visa payments.
- Security: all user assets are stored with custodial insurance and the platform has received Payment Card Industry Data Security Standard Level 1 certification (“PCI DSS”).
- User-friendly: cardholders do not need to manually convert crypto to fiat, as the Swipe network already has the funds to support all conversions.
- Token deflation: when a user uses the Swipe Network and uses the on-chain SXP token, 80% of transaction fees and withdrawal fees are burned directly by the smart contract.
Network Swipe
The Swipe Network is an ecosystem of DeFi applications and protocols currently under development. These include Swipe Swap, Swipe Finance (SwipeFi), Swipe Staking, and Swipe Administration. SXP cryptocurrency holders will have administrative rights to all DApps on the Swipe network.
All DeFi products on the Swipe network will also be available on the Binance blockchain, and users will be able to swap between SXP ERC-20 tokens and SXP BEP2 tokens (Binance Chain) without fees.
Swipe Swap
Swipe Swap is an automated market maker (AMM) that allows users to swap between assets on and between the Ethereum and Binance blockchains.
Users will have the option to provide liquidity to the protocol by depositing their Ethereum or Binance Chain tokens. In return, they will receive a share of 0.3% transaction fees on the protocol.
Swipe Finance
SwipeFi is a decentralized lending protocol similar to Compound. It will allow users to lend and borrow cryptocurrencies based on the Ethereum and Binance chains, including BUSD, BNB, DAI, ETH, USDT, and USDC. Like Compound, it will have a dynamic APY for deposits and loans. Lenders will be able to withdraw their crypto at any time, and borrowers will have no time limit on when they have to pay back their loans.
Swipe Staking
SXP holders will be able to stake their Ethereum or Binance chain-based SXP tokens to secure the Swipe network. 20 000 SXP will be distributed daily from the SXP reserve to investors over a period of 4 years to release all allocated tokens.
After all the SXP tokens in reserve have been distributed, the distributors will “earn network transaction fees”. Investors will also be able to vote using their staked SXP tokens. Staking will be available on the Swipe wallet and through the Ledger hardware wallet.
Swipe Administration
The Swipe Governance Platform will allow SXP holders to discuss and vote on proposed changes to any protocol on the Swipe Network. A minimum of 300,000 SXP tokens will be required to table the proposal, and 1 SXP token will be equivalent to 1 vote for or against the proposal.
SXP token holders will be able to vote on changes to elements such as: adding tokens to SwipeFi and Swipe Swap; changing interest rates in SwipeFi; changing SXP’s burn rate; modification transaction fees; and transactions on the Swipe Network. It is not yet known whether users will receive rewards for voting.
Swipe Wallet
Swipe Wallet supports more than 30 cryptocurrencies and fiat currencies. This is a centralized wallet with funds secured by Binance’s SAFU fund and $200 million in insurance from Coinbase Custody ($100 million) and BitGo ($100 million).
Most funds are kept in cold storage at any given time. Users can seamlessly swap between assets within the app and can also purchase them directly with a debit card, credit card, or bank transfer.
Swiping a crypto debit card
Swipe allows you to buy directly with cryptocurrency (no manual conversion required). There are four classes of debit cards: saffron, sky, steel, and slate.
All but the Saffron card require you to stake Swipe’s SXP tokens for progressively lucrative rewards, including 100% discounts on Spotify, Netflix, Hulu, Amazon Prime, and Apple Music, and discounts of 10% at Travala, Starbucks, Airbnb, and Uber.
One of the selling points of Swipe’s crypto debit card is the cashback bonus, as high as 5% and paid in Bitcoin. All cards also offer contactless payments (NFC) and ATM withdrawals. You can even use a digital version of your debit card with just your phone and use your digital swipe card anywhere.
Swipe Pay
Swipe Pay allows merchants to receive payments in cryptocurrency. Merchants can also choose to have crypto payments automatically converted to one of the 20+ fiat currencies offered by Swipe.
No credit check is required and Swipe Pay is available in over 180 countries (but not the US or the Philippines).
Swiping a credit card
Swipe Credit is a centralized cryptocurrency lending platform. Similarly, for decentralized crypto lending protocols like Compound, Swipe Credit requires you to over-decentralize your loans.
In other words, you can only withdraw 50% of the USD value of the cryptocurrency you have locked up as collateral. Interest rates on loans start at 6%/year. Cryptocurrencies available for borrowing include USDT, PAX, BTC, ETH, DAI, XRP, SXP, EOS, USDC, LTC, and BCH.
Token Swipe
Token Allocation
What is the Swipe (SXP) token used for?
In the project’s ecosystem, SXP tokens are used for the following main purposes:
- Swipe plans to use a PoS mechanism where validators (validators) are required to contribute a certain amount of SXP to participate in staking. In return, validators will receive rewards for their contributions to the network.
- Discount: Users will stake SXP tokens and receive a discount fee.
- Fees: SXP tokens are used to pay transaction and withdrawal fees on the network.
- Users are required to stake SXP tokens to gain access to more premium debit cards and higher cashback rates.
- Medium of Exchange: Users can store SXP tokens in their wallets and use them to pay in fiat.
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