Switcheo to Allow EOS Token Trading on Its Exchange
In the past, we have written about the flight to EOS where projects originally built to service other blockchains such as ETH or NEO either move their product to EOS or integrate with the EOSIO stack. Today we are going to talk about yet another such project that is integrating with the EOS blockchain. This project is Switcheo, which recently announced its partnership with Obolus to launch an EOS DEX.
What Is Switcheo
Switcheo is a Singapore-based popular non-custodial exchange run on the NEO blockchain, facilitating peer-to-peer transfers of digital assets. It currently allows trading of multiple NEO and ETH tokens and will now be adding EOS tokens to its offering. In their own words, Switcheo’s goal is:
…to achieve a DEX network with cross-chain swapping capabilities across popular blockchains, with a focus on delivering a world-class trading experience in a trustless and decentralized environment.
One of the key benefits of a non-custodial exchange like Switcheo is protection from hackers’ malicious attacks. Non-custodial exchanges do not store any of their customer funds on their wallets eliminating the possibility of such attacks.
What Is Obolus
Obolus is a research and development firm founded in 2018 by the experts from the financial and blockchain industries. The team met while working for the largest online brokerage in Japan where they ran the algorithm trading desk for capital markets.
Obolus is a strong believer that the blockchain technology will transform the financial industry as we know it, and bring fast and low-cost transactions to the society. Obolus is an ancient Greek coin from a time when Plato thought about tokenizing the world. Our mission is to fulfill this two-thousand-year-old dream.
Obolus’ strength in the traditional finance world poses a question of whether the newcomer to the blockchain ecosystem will bring any of the financial market products to the table in the future.
New EOS DEX
In a partnership with Obolus, Switcheo announced the release of the new decentralized exchange, or DEX. The new exchange will bring the convenience and usability that clients on other chains already enjoy, making Switcheo the market leader on NEO.
The new Switcheo DEX offers full interaction between the three chains: NEO, Ethereum and EOS – all on one platform. Obolus is providing a seamless settlement layer in the background. What this means to the common user is that he/she can trade tokens of all three available blockchains in one place without the need to create multiple accounts and wallets:
By leveraging an efficient on-chain matching engine designed by Obolus, the exchange allows users to trade in a fully trustless, fair and transparent manner. This technology is unique compared to other EOS DEXs which typically use less secure key delegation technologies.
To simplify the onboarding process and to eliminate one of the friction points within the EOS ecosystem – network fees – Switcheo will be paying the network fees needed by users to interact with its exchange smart contract. This will eliminate the need for the users to stake their own tokens, a requirement that typically tops the list of hindrances of the EOS blockchain.
Main competitors to the new DEX on the EOS side will be the established decentralized exchanges such as Newdex, WhaleEx, EOSDAQ, Chaince, and many more. However, none of them have the advantage of inter-blockchain trading, nor offer to eliminate the EOS network resource complexity (such as CPU and RAM) from the users making a smoother user experience. So the Switcheo exchange could have great potential and popularity among the EOS users.
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