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Blockchain technology has come a long way! Most people understand that there are multiple technology companies developing cryptocurrencies, with varying use cases. However, many of these companies often miss the mark — decentralization is key! It is a founding principle on which the future of blockchain and fintech lies.

The emergence of new protocols is not a novel occurrence, but unfortunately many new assets find themselves stuck into a centralized structure, even if they began their journey with decentralized intentions. They use a “middle man”, or third party to help conduct transactions, use fiat, and report individuals’ earnings to tax officials. This structure is reminiscent of banks and the current status of financial institutions and their operations.

Switcheo has set itself apart in its aim to provide decentralized exchanges in a “trustless” environment, where transactions are performed “peer-to-peer” (without KYC).

Why should we go decentralized?

A decentralized currency insulates customers from bank failures, bank fees, and aggressive financial policies. It also guards residents of countries with destabilized fiat currencies, giving them an alternative and stable currency — free from national financial policies. Decentralized currencies are immune to inflation or deflation, as well as tariffs or unfavorable changes in national monetary value.

When asked how Mr. Yeu envisions the future of cryptocurrency, he touched on the rampant speculation surrounding cryptocurrency in its current state, and was hopeful that it would dissipate over the next 10 years. Mr. Yeu, a visionary in blockchain technology, sees how the technology fundamentally changes the way we view money. As he describes, “much of our current monetary system lacks the disruption blockchain can offer”. In his argument for revolution, Mr. Yeu sees blockchain technology as an opportunity for growth, with “absolute on-chain transparency, and traceability…” When asked how he might see cryptocurrency change in the future, Mr. Yeu spoke about the development of sovereign digital currencies such as China’s DCEP. From his assessment on the state of affairs, he believes in the likelihood that many countries will follow suit, adding even more financial instruments such as: stocks, bonds, and ETFs. Having these functions available on-chain, Mr. Yeu explains, would enable financial inclusion for the masses (Yeu).

How does Switcheo fit into this revolution?

Switcheo protocol began as the first decentralized exchange (DEX) on Neo. It was developed by Jack Yeu and his co-founders: Ivan Poon, CEO and Henry Chua, COO. The protocol was initially created as a submission for the NEO development competition organized by the City of Zion, in late 2017. It has evolved overtime and is currently on 4 blockchains with plans to add many more through Poly Network (Yeu).

Switcheo is a decentralized exchange built to trade across multiple blockchains; it is made up of many components such as Switcheo Tradehub and Switcheo Exchange.

The native token is SWTH (Switcheo token). Those who hold $SWTH tokens are poised to receive multiple benefits as the organization builds and grows. For example, $SWTH holders receive a percentage of all transaction fees on the exchange and protocol. Therefore, $SWTH token holders will receive a cut in the adoption of Switcheo Tradehub, as well as earn through the competitive inflation model which aims to incentivize validators onto the platform. Switcheo hopes to build products with markets that are liquid and engaging for both the Switcheo users and community (Yeu).

The organization’s goal has always been to run a truly decentralized exchange. With the advent of Switcheo’s newest release, Demex, the team was able to democratize every aspect of the exchange (from listings to hosting).

Demex — The Future Wall Street for All Investors

Demex is launched atop Switcheo Tradehub, where Demex and Switcheo Exchange co-exist and target different markets. The team expects many more transactions from trade executions run on Demex, than with other products.

“The core difference in Demex is the addition of on-chain liquidity pools and various market types such as futures contracts, options and other complex markets, catering to a variety of different asset classes.” Mr. Yeu directed us to the Guides published on docs.dem.exchange which provide invaluable information about Demex.

As described in the document, “Demex is a fully decentralized trading platform that supports any cryptocurrency derivative product”. “Demex is designed for speed, scalability, and security”… as well as an ever-present focus on the seamless user experience. Using Governance, Demex is completely controlled by the community — “allowing anyone to list new markets, [and] make changes to market parameters”. Governance allows for Demex to remain completely decentralized and censorship-resistant (Switcheo).

Demex does not require a verification process to begin using it (KYC). It works directly with Ledger, Metamask, and JSON/Encrypted Key, wallet forms. Demex has been positioned to compete with centralized entities such as Bitmex and Binance Futures. It will allow for the same types of functionality with the added bonus of being truly decentralized (among other benefits). There is a really helpful comparison chart you can find here. Overall, Demex goes head-to-head on Matching, UI, Liquidation, Oracle, Decentralization, Rewards, Markets, Spot, AMM, Fees, Logging in, Withdrawal/Deposit, Ecosystem, and Team. Across the many comparisons, one can see Demex really shines when it comes to ease of logging in, withdrawal/deposit capabilities, permissionless listing, rewards, team, and decentralization (Switcheo).

Demex currently boasts Liquidity Pools and Spot Markets for the following pairs:

ETH 50% / USDC 50%

WBTC 50% / USDC 50%

CEL 50% / USDC 50%

NEX (ERC-20) 50% / USDC 50%

nNEO (NEP-5) 50% / USDC 50%

SWTH 20% / ETH 80%

SWTH 20% / USDC 80%

WBTC 50% / ETH 50%

Let’s not forget to mention it is a working mainnet Protocol.

At the time of this interview with Mr. Jack Yeu, a lot could not be disclosed about Demex due to it’s continuous evolution, and all that it would grow to sustain. However, the team will release more details shortly, as well as information about the flagship features everyone is waiting for. In the meantime, you should check out the Demex Guides published by the team.

Wider applicability and availability of Decentralization has been forged and amended by the Switcheo Team. Decentralized Currencies and Governance continue to evolve and change the way society works and lives, and interacts with one another. Switcheo continues to find itself leading the way.

And now, to get to know (one of) the man behind the protocol a bit better… we have asked Mr. Yeu to participate in…

Show & Tell

Show — Share a meaningful photo that represents something special to you, or would help us understand you better.

— and/or —

Tell — Tell us about a life experience, achievement, or reflection that impacted your life in some meaningful way.

Tell — “I picked up wake surfing 2 months ago and just did my first 360!” — Jack Yeu

Congratulations Jack! You know the team at Pacific Validators are definitely ocean fans! We’ll see you out on the water!