Our company aims to build an exchange that addresses two hurdles of mainstream adoption for crypto. The first is to have the lowest barrier-to-entry for new crypto and defi users, and the second is to be regulatory compliant regarding securities and taxation, though with a high emphasis on consumer protection.
Before crypto becomes regulated, we need to build an exchange that exemplifies the ethos of crypto while preserving the merits of proper and just legislation. Legislation is typically the result of immoral actions, or at the worst, misunderstood actions. It is clear that crypto is largely misunderstood by most to all governments, but regardless, several of their fears are still legitimate. Consumer investor protection, the ability to identify and explain exploits, and the anonymity of the responsible parties to hold them accountable are major concerns. In effect, it is essential to build an exchange now that satisfies current legal requirements, while also protecting the consumer and ethos of crypto so future regulation does not overreach or diminish the full capability and security of defi on fantom.
In the United States, we may have just learned that trading crypto on the secondary market is not the same as trading securities, though certain types of NFTs will end up being defined as securities. As far as we know, there are currently no exchanges on fantom that would be legally compliant for either the consumer or the exchange. For example, fractionalized owner and tangible-based NFTs are an opportunity that is perhaps immeasurable, though is hardly addressed in the entire NFT marketplace. From property records, music royalties, wills and inheritance, crowdfunding, to even buying famous artworks, there is a need to onboard new users easily and efficiently while protecting their investment interests in crypto, whether in defi or NFTs.
Below are areas we will be focusing on as we develop and fine-tune our Product Market Fit, though our emphasis will be building a composable and modular exchange in anticipation of future regulation and any changes needed. Focusing on designing our exchange with composability and modularity will allow us to keep pace with any regulatory or compliant related areas so that we are able to update, or replace, new requirements like kyc or taxes immediately without any issues to our consumers.
DEX Market Needs
- Low, consistent, fair, & predictable swap fees (not only a low percentage fee, but the overall fee should be incrementally capped at transaction levels. The fantom chain doesn’t charge depending on transaction amount and neither should your favorite exchange.)
- Low barrier to entry (first-purchase defi)
- Transaction anonymity
- Wallet security and ease of use
- Risk-free capital providing
- Low-to-zero impermanent loss
- Single-sided liquidity offerings
NFT Marketplace Needs
- Low transaction fees
- Fractionalized NFT ownership / investing
- Tangible-based NFTs
- Dynamic listing / collection offerings
- Unique royalty structure
- Non-inhibited access to consumers
- Rights to IP
Consumer / Investor:
- Investor protection
- Funding & project dashboard updates
- Non-conflicted consumers/investors
- Legally compliant platform
- Communication and financial dashboard for investors
Proactive Security Needs
- UI / UX programming & security standards
- Cyber security considerations
- Token security standards
Consumer Protection Needs
- Universal protocol security standards
- Tax specific spreadsheet
Our funding request of 100,000 fantom aligns with our 30-day timeline to define the internal mechanisms, parameters, and structure of the exchange, crowdfunding section, and NFT marketplace which will segway into our pre-seed phase of fundraising. Our team wallet is: 0xa56cbF6d3457e07021448965860804891CED7347. Our website is not live right now, though it is ProvenanceFinancial.Crypto.
Our project is worth funding for the reasons listed above, though more specifically because it will offer you the lowest swap fees on fantom, the ability to secure legal crowdfunding through your NFTs, help avoid impermanent loss as an LP, enable you to create a fractionalized-ownership NFT for your tangible items (art, property, etc), and to see the value of your fantom bag increase as we onboard new users to defi with the most intuitive, proactively secure, and efficient exchange on fantom.