This marks the inaugural installment of an ongoing series where we delve into the intricacies of our project and outline our ambitions.
In this post, we will explore the pertinent challenges that we are poised to tackle in order to enhance the accessibility and trading experience within the realm of web3.
Overcoming Liquidity Challenges
The struggle with limited liquidity or unavailable trading pairs is a common frustration shared by many in the crypto space, and I’ve personally encountered this issue. It can be disheartening to attempt a token exchange, only to discover that liquidity is scarce or the token isn’t listed on your preferred DEX/CEX. This often forces you to create accounts on multiple platforms just to execute a simple trade.
At Mikosava, we’ve recognized this problem and are actively working to provide a solution. Our approach allows anyone to trade with any token of their choice, irrespective of liquidity constraints. We achieve this by connecting two parties looking to trade, eliminating the need for pooled liquidity. This approach offers several advantages:
- Only two peers are required to facilitate a trade.
- Liquidity pooling is unnecessary, mitigating impermanent loss (IL) and dapp failure risks.
- As our user base grows, traders will have an expanding pool of potential counterparts, enhancing their ability to find suitable trade partners.
We are dedicated to making crypto trading more accessible and efficient for everyone
Facilitating Trustless OTC Trades
One of the challenges our solution addresses is the lack of trust that often plagues over-the-counter (OTC) trades. Picture this scenario: two parties, one holding 1000 tokens of CoinA and the other 500 tokens of CoinB, wish to trade. They are hesitant to use an exchange, either due to the issues we discussed earlier or because the blockchain they are operating on is in its early stages and lacks operational dApps.
Typically, in such situations, they seek an intermediary, a person or entity willing to manually facilitate the token exchange. This intermediary could be an admin or even a trusted friend. While the trade may eventually occur, there’s always the unfortunate risk that the admin might abscond with your funds, leaving you without your CoinB. Sadly, this story is all too familiar in the crypto world.
However, with Mikosava, we’ve designed a smart contract specifically for this purpose. It executes the trade mechanically, without the need for any intermediaries or manual intervention. Say goodbye to the risks associated with trusting third parties — our solution ensures secure and trustless OTC trades.
Enhancing Privacy
Mikosava takes privacy seriously. We are committed to a decentralized approach, and as a result, we do not require any Know Your Customer (KYC) processes. Furthermore, we adhere to a strict no-logging policy. All of our ‘backend’ data is securely stored within the blockchain itself, eliminating the need for private servers.
Our philosophy is straightforward: We keep it simple, and we keep it private. Your data remains yours, and your privacy is a priority.
Now, Addressing the Elephant in the Room
We understand the concern when we talk about eliminating intermediaries, yet we identify as one ourselves. Let’s be transparent — we are indeed an intermediary, but with a significant distinction. We operate as a different breed of intermediary compared to the conventional ones we’ve grown accustomed to.
Think of us as the engine under the hood of your car. When you step on the accelerator, the engine propels the car forward. In much the same way, we function as that mechanical engine in your trading experience. It’s a simple process: you press a button, and your trade is initiated; you press another, and it’s concluded. The driving force behind this operation is the smart contract, a mechanical engine, executing trades without the involvement of any individual or entity.
So yes, we are an intermediary, but we are committed to a new paradigm where trust is rooted in code, not in intermediaries with their own interests. We empower users to take control of their trades in a secure and automated manner.
Stay updated on our latest developments by following us on Twitter at https://twitter.com/MikosavaP2P or https://twitter.com/tihomir619.
Your insights and feedback are greatly appreciated.
Tiho
