Tokenized Securities Swap

Liquidity pools are pools of tokens locked in smart contracts that provide liquidity in decentralized exchanges in an attempt to attenuate the problems caused by the illiquidity typical for such systems. Liquidity pool is also a name given to the intersection of orders which create price levels that — once reached — see the asset decide whether to continue to move in uptrend or downtrend. The decentralized exchanges that leverage liquidity pools are the same as those that make use of automated market maker based systems. On such trading platforms, the traditional order book is replaced by pre-funded on-chain liquidity pools for both the assets of the trading pair.

No. DS Swap is built on top of Uniswap - an automated market-making protocol.

All investors have to pass the KYC procedure in order to be whitelisted. Only whitelisted investors with set transactions limits can buy/sell securities via the DS Swap.

Unlike utility tokens, security tokens trading is heavily regulated in most countries in order to avoid law abuse and market manipulation. Stobox embeds regulatory rules into smart contracts and provides the infrastructure to manage KYC/AML data and be able to inspect every transaction. Learn more about the utility tokens vs security tokens difference.

There are three types of fees that emerge from using the DS Swap. At first, it’s the subscription fee to access the DS Swap. It is paid by the business which has tokenized securities via Stobox. Secondly, once a business creates a liquidity pool, it will collect 0.3% commissions from every trade. These funds are allocated solely to the pool owner - the company that has tokenized its securities. Finally, every transaction on the Ethereum blockchain requires gas fees. Gas fees are paid in order to proceed with any transaction.

Use Stobox Utility Token in order to increase the number of transactions. Depositing a certain amount of STBU unlocks unlimited trading on the DS Swap decentralized venue.