What is the Swaps & Escrow service?
One of TrustSwap’s founding goals is to build a P2P escrow smart contract service that can allow anyone in the world to swap tokens in a trustless and secure way without the need to involve a third party.
The Swaps & Escrow service by TrustSwap is the ultimate P2P crypto swapping solution. It enables users to trade ETH or any ERC-20 token with any person in the world, by setting up customized token swap parameters.
The uniqueness of this service is that all tokens are locked using our audited smart contracts. Consequently, tokens can only be withdrawn and the trade will only be executed after both parties complete their end of the agreement.
This is a very significant innovation as it eliminates high escrow fees charged by middlemen (CEXs, Law firms, Escrow companies). Users can instantly create their own custom token trade parameters, thereby not relying on the pricing of cryptocurrencies by exchanges. Therefore, this tool has a massive potential to change the DeFi landscape!
The service is useful for OTC/Escrow deals and individual P2P deals. It is a great tool for users wishing to avoid CEXs and costly middlemen like escrow companies and law firms which can be hard and expensive to use. It can also facilitate P2P trading of SWAP tokens with exemptions or discounts on fees.
What is an example of a swap that could take place with this service?
- Bob agrees with Alice to trade his SWAP tokens for her ETH tokens against a fixed rate.
- Bob signs in the Swaps & Escrow service with a web3 wallet like Metamask.
- After signing in with Metamask, Bob inserts the token swap details at a specific price to trade his SWAP tokens for ETH tokens. He first enters the token and amounts to send and then enters the token and amount required from the recipient.
- Bob enters the payment details.
- Alice agrees to trade her ETH tokens for Bob’s SWAP tokens at the specific price that Bob has placed, by logging in and confirming the swap details.
- The swap executes through a smart contract where both parties agree that they accept the transaction at the specific rate. No intermediaries like exchanges, lawyers and banks are involved!
Swap cryptocurrencies with your Own Rules now!
- Navigate to our Swaps & Escrow service and connect a compatible wallet like Metamask. Click Start
- Choose the token you wish to send and the token you wish to receive. Note that this service currently supports ETH and all ERC-20 tokens. Click Continue.
- Enter the ETH address of the recipient and the token amounts for both parties. Click Continue.
- Sign the transaction with your wallet. Once the other party signs the transaction with his/her wallet, the customized token swap will be executed!
Traditional escrow fees by attorneys and law firms amount to approximately 5% to 10% of the transaction.
Fees on the Swaps & Escrow service can be paid in ETH (0.3%) or SWAP (0.15%). The service is free if a user selects to send SWAP and receive ETH. Consequently, this is an additional incentive for SWAP stakers to incentivize its usage as a primary unit of exchange.
Additionally, users can see their Incoming Trades here and Outgoing Trades here.
Use Cases
Individual P2P Trades: Any person globally can now trade with another person, any amount of any ERC20 or ETH token. Therefore, this is a breakthrough concept as it enables a trustless, secure environment and eliminates the need to rely on exchanges pricing specific tokens. It is an ideal service for providing friendly discounts and premium opportunities.
OTC / Escrow: Over-the-Counter (OTC) services, cryptocurrency exchanges, brokers, companies, projects and other intermediaries can use the Swaps & Escrow service to save significant costs in value transfer procedures.
Avoid Costs of Exchanges: The trading of tokens occurs without the hassle and expense of listing on exchanges and adding liquidity. Users can trade tokens directly in a P2P secure manner.
Enjoy SWAP Benefits: Users can trade SWAP tokens for ETH with ZERO service fees! This can create a micro-economy of P2P OTC SWAP trading that incentivizes wider distribution of SWAP tokens and organic community growth. Therefore, transacting with SWAP can save both parties significant costs. In addition, it drives SWAP value through the TrustSwap platform and reducing sell pressure on exchanges.
“Send me one ETH and I’ll send you two back!” Sadly, people still fall for this scam because they think that their only options are to trust the other person or potentially miss out on “a lucrative opportunity”. Now we can finally call their bluff! When you get those formal requests, you can reply with “Sounds great! Let’s do it with the Swaps & Escrow secure service!”
The TrustSwap community is always exploring new ideas and ways to add value to the crypto space by providing smart contract solutions.
Join our Official Telegram Channel to find your first swap mate! Also make sure to stay tuned with our TrustSwap Blog for more updates regarding our cross-chain crypto services toolkit.
