Market Overview

First Uniswap, Now Swapfolio: What To Know About The Companies Helping Make DeFi Easy

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With a myriad of new technologies and projects emerging over the past six months, 2020 has proven to be another revolutionary year in the crypto world. Projects like Swapfolio and Uniswap show that exposure to the top opportunities don’t necessarily require a computer science degree or centralized hub and UI.

Decentralized finance, better known as DeFi, has exploded this past summer, providing a new avenue for the crypto community to invest in digital assets. Tools like Uniswap ROI have been rapidly developed to address new challenges and opportunities in DeFi, like impermanent loss, and helping users properly manage their exposure to specific assets and investment strategies.

Swapfolio is a portfolio management application that allows traders on Uniswap to track their balances and trading activities by simplifying and consolidating information related to users’ wallets. The overall goal of Swapfolio is to provide an easy-to-use analytics platform for crypto traders of any experience level – something that has become increasingly important as the decentralized world expands and absorbs enthusiastic but uneducated investors.

Through efficient UI designed for optimized performance, Swapfolio’s team has been steadily working on making the project an essential accessory to the growing Uniswap community. The Swapfolio alpha launched with a user-friendly platform in the second week of October.

If the name doesn’t ring a bell, Uniswap, a decentralized protocol for automated liquidity providers on Ethereum, emerged as DeFi’s obvious winner of summer 2020. It’s fair to say that Uniswap is considered to be the biggest project launch in DeFi since BitShares, one of the original decentralized exchanges (DEX’s) founded in 2014.

Uniswap allows users to swap ERC20 tokens regardless of trading activity – there is no need for buyers and sellers to provide demand and therefore, liquidity. The platform has become popular for certain investment strategies such as yield farming, where users engage in a series of maneuvers often involving pooling and lending their assets for fees and rewards. Uniswap recently launched their UNI governance token.

Combining Convenience With Simplicity

Thanks to their Constant Product Market Maker Model, Uniswap is, according to CoinDesk, bigger than what the entire DeFi Industry was just two months ago with over $2 billion of crypto assets locked in. In late August, Uniswap’s trading volume was higher than Coinbase’s. While UniSwap is dominating certain aspects of DeFi, such as volume, it is fundamentally changing the way that crypto natives interact with the market.

For example, it can be extremely difficult to monitor price, chart, or set up order types that aren’t straightforward market orders into pools of liquidity. Swapfolio’s team is leveraging their many years of experience in the industry as a launching point for what may be one of the biggest opportunities in DeFi: simplicity.

Uniswap’s Ecosystem Will Bring New Products to Market

Swapfolio’s Barry Chen explained that the success of Uniswap, and ultimately Swapfolio, has been simplifying very complicated concepts and investing strategies. Making a users’ experience as smooth but functional as possible is always the end goal. “We try to find the right balance to bring back some core functionalities without adding unnecessary clutter to the whole trading experience." Swapfolio’s model is free to use, with users able to stake and gain access to pro features on the app using their SWFL governance tokens.

Chen spoke on the exploratory nature of launching many tokens on the emerging technical platforms, and the quick evolution that DeFi has cultured. "I love the fact that people can now experiment and launch a token with complicated/fancy tokenomics in just a few days and test the market quickly,” said Chen, “I know sometimes it’s rather reckless to launch an unaudited contract into the wild, but having that freedom and support from the community is truly liberating. Risky, yes. But we see that as a good sign."

Swapfolio has just begun to release products that may change the way users utilize Uniswap and become involved in the decentralized world as a whole.

Disclaimer: The author of this post has a personal relationship with some Swapfolio staff. Please consult your financial advisor before investing in any cryptocurrencies, stocks, or companies as they can pose risks for the average investor. This post is informational in nature and does not constitute financial advice. 

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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