The SwissBorg Wealth App is one of the go-to crypto apps where users can buy, sell, and store Bitcoin and other cryptocurrencies. The platform has seen continuous growth throughout 2020 and doesn’t appear to be slowing down any time soon. However, SwissBorg is far more than just another centralized financial application. SwissBorg is an ecosystem of wealth management tools, and presents a unique bridge between centralized finance (CeFi) and decentralized finance (DeFi), with help from the native CHSB token and the SwissBorg Wealth App.
In this article, we’re going to take a look at the SwissBorg ecosystem and the features and applications that have led to its rapid adoption. Also, we’re going to dive deep into the SwissBorg Wealth App, and the role that the CHSB token plays. Furthermore, we'll explore why so many people are choosing SwissBorg over other exchanges and wealth management apps.
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SwissBorg Team & Background
Established in December 2017 by Anthony Lesoismer and Cyrus Fazel following a $52 million fundraise, Switzerland-based SwissBorg boasts an ever-expanding team of banking professionals and investment management experts from around the world. The SwissBorg team is made up of individuals from over 20 different countries, with offices also located in Toronto, Canada, and London, England.
The SwissBorg team appears to be a united collective with a shared goal and focus on the future of crypto. Furthermore, the SwissBorg website states that the team prides themselves on their “commitment to gender equality and sexual orientation inclusivity”. This is just one example of SwissBorg setting an example for future crypto projects by promoting a positive brand image.
What is SwissBorg?
SwissBorg is a cryptocurrency wealth management ecosystem that aims to make investing in crypto simple. The SwissBorg Wealth App offers a range of major digital assets in a sleek user interface and is available for iOS and Android.
The native CHSB utility token has played a crucial role in the success of SwissBorg, showing substantial upward price movement throughout 2020. This has been pivotal to the success of SwissBorg and has garnered a great deal of adoption for the platform. Furthermore, the SwissBorg Community App plays a vital role in educating new users by allowing them to practice trading with zero risks to their funds.
SwissBorg is a community-driven platform, holding regular votes on which new digital assets should be listed on the SwissBorg Wealth App. Currently, SwissBorg supports 15 fiat currencies and provides access to crypto services in over 100 countries. These numbers are likely to continue increasing as the adoption of the platform soars.
SwissBorg DAO
The SwissBorg decentralized autonomous organization (DAO) is the governance mechanism that manages democratic on-chain proposals for changes to the parameters of the ecosystem. Furthermore, community members are rewarded in CHSB tokens for governance participation.
CHSB Token
The SwissBorg CHSB token is an ERC-20 compliant Ethereum-based utility token. The CHSB token plays several roles within the SwissBorg ecosystem and has played a vital role in the success of the SwissBorg Wealth App.
At the time of writing, the CHSB token has a market cap of $522,116,444, with a circulating supply of 935,285,104, and a max supply of 1,000,000,000. Trading at less than $0.03 at the beginning of June 2020, the CHSB token has since shot up in value, reaching an all-time high of around $0.65 in January 2021. This shows the incredible demand for the CHSB token. Moreover, this demand is based on high utility and strong fundamentals.
The CHSB token is the lynchpin of the SwissBorg ecosystem, bringing tremendous utility to the platform. CHSB is used for the governance of SwissBorg by granting voting rights to holders of the token. Also, the CHSB token is used for the distribution of rewards from the Proof of Meritocracy concept and Protect and Burn policy. The CHSB Protect and Burn policy is designed to increase the value of the CHSB token while also increasing scarcity.
How Does SwissBorg Work?
SwissBorg uses an engaging and interactive rewards system for new users on the Wealth App platform. Users who sign up with a referral link and deposit €50 or more receive a lottery ticket. Both the referrer and referred will receive notifications from the app inviting them each to ‘scratch’ off their lottery ticket on the app. Winnings can range from anywhere between €2 to €100 worth of Bitcoin. The winnings are then automatically added to the Bitcoin wallet in the portfolio section on the Wealth App.
This is a fun and exciting activity as an introduction to the crypto space for the first time. SwissBorg puts its users and community first and designs creative ways to grow its user-base.
Proof of Meritocracy
CHSB token holders have the opportunity to participate in the decision-making regarding future developments to the SwissBorg ecosystem. This is thanks to the SwissBorg Proof of Meritocracy policy. Through this system, the CHSB token generates the RSB token (referendum token) for voting on governance proposals. The more CHSB tokens held by a user, the more voting power they receive.
Protect and Burn
Long-term holders of the CHSB token are rewarded by the SwissBorg Protect and Burn policy. The policy works by only executing buyback and burn functions when the price of CHSB is declining.
Many buyback mechanisms allow short-term speculators to purchase tokens before buybacks and sell them for a higher price to make a profit immediately after buybacks have occurred, (which results in a reduction of the token supply). However, the SwissBorg Protect and Burn policy protects and rewards loyal, long-term hodlers of the CHSB token.
SwissBorg allocates 20% of profits from fees generated by the Wealth App to a reserve fund. These reserves were put in place to stabilize the price of the CHSB token. This reserve automates buy orders for CHSB tokens whenever the price of the token enters a period of bearishness. Furthermore, buy orders are automated using the 20-day moving average trading indicator.
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SwissBorg Wealth App
The SwissBorg Wealth App is the center point of the SwissBorg ecosystem. This is where users have complete control over their portfolio and wealth management. The AI-powered app provides key insights to assist with risk management and creating a robust crypto trading strategy. Furthermore, the Wealth App provides a user-friendly and straightforward interface, making investing in crypto and managing a portfolio simple!
Users of the SwissBorg Wealth App can make deposits using a wide range of currencies that can be withdrawn easily into most types of bank account. New crypto assets are listed regularly, but only after passing the rigorous SwissBorg vetting process. The SwissBorg Wealth App is currently available for download on android and iOS.
Wealth App users gain access to the best rates available with minimal slippage, thanks to the SwissBorg Smart Engine. This is achieved by searching multiple exchanges for the best conversion rates.
SwissBorg Smart Yield
Users can currently earn interest on their crypto assets by staking USDC and CHSB using the SwissBorg Smart Yield section of the app, with more assets to be included soon. Premium users are required to hold a balance of 50,000 CHSB tokens for a minimum of a year. However, this entitles Premium users to higher yields. Furthermore, Premium users can take advantage of zero exchange fees on most crypto assets.
Existing Premium users earn a yield from any tokens held beyond the 50,000 CHSB requirement. Also, non-premium members can use this as a way to stack CHSB to achieve Premium status quicker! The SwissBorg Smart Yield account aggregates yield using various sources of liquidity to maximize opportunity while reducing risk.
SwissBorg Smart Yield is currently providing some of the most competitive returns available. However, it is worth noting that when staking, you will not be able to access staked funds during the 12-month lock-up period.
CeFi, DeFi, and SwissBorg
Centralized exchanges (CEXs) and decentralized exchanges (DEXs) may look similar from the user-end. However, under the hood, there are some distinct differences that one must understand to maintain the security of their wealth. Both DEXs and CEXs have a place in the industry, each with its own benefits and drawbacks.
Centralized Exchanges
The main distinction of centralized exchanges (CEXs) is that they’re controlled by a central party or organization. Often, CEXs have large investors supporting the business, which can provide a lot of advantages. Firstly, with sufficient funding, CEXs have the time and facilities to create a simple and easy, highly-intuitive user experience (UX) and graphical user interface (GUI). Secondly, there is seldom any issue with liquidity. Thirdly, CEXs often require KYC (know your customer) details as part of KYC and AML (anti-money laundering) regulations. Moreover, CEXs remove the risk of users losing their private keys by storing them through secure means, individual to the exchange.
This can be both a positive and a negative, as the saying goes in the community; “not your keys, not your coins”. There have been a few occasions over the years where the CEO or key-holder within a CEX has passed away or been arrested, and funds were locked in the exchange forever. This meant all users of the exchange could not gain access to their funds. Also, CEXs are vulnerable to hacks. Centralized exchanges, by nature, are a risk as a single-point-of-failure.
Decentralized Exchanges
On the other hand, decentralized exchanges (DEXs) operate as decentralized applications (dApps) built on top of a blockchain. The most popular being the Ethereum blockchain. Users of DEXs interact with token smart contracts directly, masked by a simple graphical user interface (GUI). Such platforms include Uniswap, Sushiswap, and 1inch Exchange, among others. Crucially, users hold custody of their funds whilst interacting with exchanges.
While self custody appeals to many, it’s worth bearing in mind that a lot of pain has been caused due to lost private keys and passwords. This is particularly important for newcomers to the space.
Where Does SwissBorg Come In?
Although technically, SwissBorg falls into the centralized exchange (CEX) category, the exchange is a self-described bridge between CeFi and DeFi. SwissBorg has made use of Curv’s Multi-Party Computation (MPC) keyless technology to drastically reduce the risk to CEXs single-point-of-failure model with regard to users’ private keys.
When centralized exchanges store users’ private keys, there are several secure options available. Firstly, a multi-sig wallet, which requires two private keys to access funds in the wallet. One user can have two keys but may store them in different places. Alternatively, the private keys may be stored by two separate holders. This reduces the risk of a hack, however, is still prone to human error e.g. loss of one of the private keys.
The second option for centralized exchanges to store funds is on hardware security modules (HSM). Also referred to as a secure hard wallet or cold storage. Hard wallets are notorious for their off-line security, with some exchanges storing these wallets in vaults somewhere deep in the Swiss Alps. Making use of multi-signatures to access the hard wallet adds an additional layer of security to funds. However, though the risk is incredibly small, these physical devices could still be lost, destroyed, or stolen.
Multi-Party Computation (MPC) Keyless Technology
This is why SwissBorg has the upper-hand in private key storage security over competing centralized exchanges. Funds on SwisBorg are secured through Multi-Party Computation (MPC) keyless technology, an innovation that doesn’t require any private key to access funds. Instead, MPC works by distributed parties collaborating their computational power to work together to solve a mathematical equation. MPC technology creates distributed data shares with multiple encoded parts. The necessary independent data shares can come together to create a public key and wallet address for digital deposits from users.
As multi-party computation (MPC) technology does not require a private key, access to funds cannot be compromised. SwissBorg uses this technology to remove the inherent risk of centralized exchanges - having a single-point-of-failure. The SwissBorg Wealth App is one of the most secure centralized exchanges to store your funds, as they are mathematically backed through distributed blockchain-based algorithms.
SwissBorg Community App
The SwissBorg Community App is another application brought forward by SwissBorg, to help educate users around cryptocurrency and familiarize themselves with the markets. Furthermore, this is done so without risk to users’ actual funds. Think of this app as ‘paper trading’ or ‘play money’. There is no risk of you losing any funds, however, there is a chance you could win some Bitcoin!
The app is filled with educational material to help users understand technical analysis when trading cryptocurrency. The app encourages users to predict whether an asset price is going to go up or down. If the user guesses correctly, they win a point. As users collect points awarded for successfully trading the markets, these points can be exchanged for Bitcoin.
SwissBorg is community-focused and is striving toward financial freedom and inclusion. Moreover, SwissBorg tries to help educate its users, to help them make the most out of the cryptocurrency market.
SwissBorg Wealth App Summary
Often, newcomers entering the crypto space for the first time are advised to use reputable crypto exchanges and wallets such as Binance and Coinbase. However, SwissBorg provides an equally intuitive user experience that could rival many of the top crypto exchanges. Not only is the user experience seamless, but the money that can be saved on fees by using SwissBorg soon adds up!
SwissBorg also offers some of the most competitive yield rates available for staking within the Wealth App. For those that are perhaps less tech-savvy, SwissBorg provides a great fiat on-ramp to a crypto app. Furthermore, SwissBorg harnesses the power of DeFi in a way that is not intimidating or overly technical. Moreover, SwissBorg rewards user loyalty.
SwissBorg is a highly regulated and compliant crypto project that simplifies the process of portfolio management and cryptocurrency investment. The SwissBorg Wealth App combines aspects of decentralized finance and traditional finance in a familiar format that provides a modern, all-in-one financial application that makes it easy for newcomers to invest and earn yield. By developing a highly secure and easy to use crypto app, SwissBorg is building a bridge for cryptocurrency adoption, with exciting new features added regularly.
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