Swarm adds dOTC trading to rewards calculation for $SMT holders

Swarm Markets, a regulatory-compliant DeFi platform, today announces it has added decentralized over-the-counter (dOTC) trades on the Swarm platform (app.swarm.com) to the rewards calculations for $SMT holders.

This will take effect from Monday 01 April 2024 and rewards will be paid out Wednesday 10 April 2024.

$SMT holders get rewards for providing liquidity in AMM pools on Swarm’s permissioned blockchain platform and by staking on Swarm’s dedicated staking platform.

As part of Swarm’s commitment to increase the ways $SMT holders can earn on their assets, dOTC trading volume on its permissioned platform will now be included in the weekly rewards calculation.

dOTC trading

dOTC is short for decentralized over-the-counter. OTC markets are essential in traditional finance (TradFi) for block trading — large, privately negotiated securities transactions.

dOTC uses smart contracts to disintermediate trading, enhance efficiency and mitigate credit risks because trades are fully collateralized. The system acts as a decentralized central limit order book.

Users who are fully onboarded to app.swarm.com, can use dOTC to trade tokenized assets and crypto without slippage. Users can create bids, which can then be filled by anyone who is an approved user on the Swarm platform.

Traditionally, OTC markets are dominated by institutions. However, the dOTC trading can cater to both retail investors and institutions who wish to avoid the slippage often found in DeFi’s automated market makers (AMMs).

$SMT rewards

Launched in August 2021, $SMT holders get discounts on trading fees and boosted rewards for providing liquidity on Swarm’s permissioned blockchain platform.

In August 2023, Swarm launched a dedicated staking platform where $SMT holders can earn additional rewards by staking against the trading activity in tokenized RWAs. In March 2024, Swarm announced explosive growth in staking activity, with 10% of circulating $SMT locked up in staking.

About SMT

• You can buy and exchange SMT on Uniswap (Ethereum and Polygon), MEXC, Gate.io (under the ticker $SMTX,) the Swarm platform and Open dOTC.
• For tokenomics and distribution, visit the SMT docs page.
• Deflationary measures and increased utility for $SMT were introduced in April 2023. You can find more details plus FAQs here.
• In August 2023, we announced that SMT holders will be able to stake their tokens against the tokenized securities listed on the Swarm trading platform to earn rewards. Read about staking here.
• For total circulating supply figures, use our API.
• Join the conversation on Twitter and Telegram.