The Swipe network released their SwipeChain testnet on July 6 as a step toward its future interoperable mainnet.
SwipeChain is a layer 2 decentralized liquidity network, built with CosmosSDK. It is a fork from THORChain – another DeFi liquidity network. It focuses on interoperability as its main feature.
As the testnet ventures out into the world of DeFi crypto, its purpose is to allow trustless cross-chain swap via its own SwipeSwap. This is meant to complement pre-existing layer 2 cross-chain trading rather than take over networks like Ethereum.
With this launch, developers can run their Swipe nodes. Stake pool operators can also stake their SXP in liquidity pools on the network.
Trading in old ways
Although SwipeChain is the current focus of the Swipe company, it was not always the case. Swipe began and still does offer a card payment infrastructure to exterior platforms. It seeks to create physical cards to use with crypto payments. Recognizable brands in the space, such as Binance, utilize Swipe’s commercial offerings.
Swipe also featured its own wallet system, Swipe Wallet, and a card for its ecosystem, Swipe Card. These features, however, are no longer offered.
In an AMA leading up to the testnet release, Swipe founder Joselito Lizarondo called it an “executive decision” to turn off the two original network features.
“We need to think from a long-term perspective what is the best for Swipe and Swipe’s growth. We took an elevated look at our offerings, products, users, etc and we decided that the best path forward is to go full decentralization for our consumer products and then centralization for our business products.”
However, the platform still offers consumer services, such as cards, to outside companies and developers.
The future of Swipe
After the SwipeChain testnet successfully launches and developers have a good dry-run navigating the new space, Swipe intends to release plans regarding the mainnet launch.
The network’s goal is to grow with the DeFi space as a platform that can be developed and engaging. This rather than simply offering service internally and commercially.
Another way in which the Swipe network is engaging with the continually evolving crypto space is through NFTs. Swipe is creating the Swipe NFT Marketplace, which intends to be a cross-chain non-fungible token platform.
The NFT marketplace will be both entirely decentralized and on-chain. The planned governance token of the marketplace will be the native Swipe asset SXP. The marketplace initially will accept both SRT and SXP. However, holders of Swipe will have the opportunity to vote on the ability to use other tokens in the future.
When asked about the connection between the Swipe NFT marketplace and the Binance NFT marketplace, Lizarondo reiterated that what Binance offers is centralized, while Swipe is fully decentralized. However, the two marketplaces will work in tandem together.
Native token SXP
The native token of the network is Swipe Token (SXP). It is one of BeinCrypto’s top DeFi coins for July. The launch of the testnet created some buzz around the token, and the price at the time of writing is hovering around $2.15.
On SwipeChain, SXP has many uses, including staking, payments, governance, and other development as they arise. The token will be interoperable between pre-existing chains, including Ethereum, Binance Chain, Binance Smart Chain, and Swipechain.
Users operating on the testnet can bond SXP to a smart contract, guaranteeing rates between crypto-to-fiat. Those who stake their SXP in SwipeChain liquidity pools and fix it to the network will earn their share of the network staking reward. Currently, the reward bounty is 20,000 SXP each day. The number is subject to change via Swipe governance.
Waiting on mainnet
As the testnet gets worked over, users were told announcements about the mainnet launch will happen in the next “several weeks.” This will depend on what bigs are found and how happy the team are to finally deploy.
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